Full text of H.16 Capital Market Developments : August 16, 1971

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

•

L.5.8 Confidential (F.R.)

—

•

DECONTROLLED AFTER SIX MONTHS

MARKET
DEVELOPMENTS

Capital Markets Section, Division of Research and Statistics,
Board of Governors of the Federal Reserve System, Washington, D. C.




L

-

r

-

*

INDEX
Developments in the Corporate and Municipal Bond Markets
Capital Market Yields
Capital Market Volume
Stock Market
Mortgage Market

SYMBOLS:
e

Estimate

p

Preliminary

r
n.a.

Revised
Not available




TABLE 1: Yields, Volume and Reception

WEEK ENDING:

YIELDS
MOODY'S
SEASONED
NEW ISSUE 1
Aaa

CORPORATE BOND MARKET
VOLUME;2
GROSS
OFFERINGS

1971 - July

2
9
16
23
30

7.89
7.87
7.82
7.90
8.07

7.63
7.65
7.64
7.63
7.66

310
99
238
654
22 le

Aug.

6
13
20

8.02
7.97
n. a.

7.69
7.71
n.a.

247
194
275e

WEEK ENDING:

YIELDS
MOODY'S
BOND BUYER
SEASONED
SEASONED 20
Aaa
BOND INDEX

PER CENT
SOLD BY END
OF WEEK

BONDS SCHEDULED
WITHIN 28 DAYS

88
86
58
84
80e

n.a.
n.a.
n. a.
n.a.
n. a.

100
100

MUNICIPAL BOND MARKET
VOLUME 2
PER CENT
GROSS
SOLD BY END
OF WEEK
OFFERINGS

n.a.
n. a.
n.a.

BONDS SCHEDULED
WITHIN 28 DAYS

1971 - July

2
9
16
23
30

5.90
5.70
5.70
5.65
5.80

6.19
6.06
6.03
5.97
6.05

331
633
347
564
276

88
86
76
83
75

1,219
916
1,059
829
804

Aug.

6
13
20

5.88
5.80
n.a.

6.07
6.03
n.a.

203
574
26 5e

72
80
n.a.

1,076
588

1 Derived by adjusting to a Aaa basis, new issues of publicly-offered corporate bonds
with call protection, rated A, Aa, or Aaa by Moody's Investors Service (except serial
and convertible issues, offerings of natural gas pipeline and foreign companies, and
• bonds guaranteed by the Federal Government.)
2 Millions of dollars unless otherwise indicated.
Note:

See footnotes to Table 3




\
TABLE 2: Details on.Inventories
' DATIC
OFFERED

CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK
ORIGINAL
RATING AND
ISSUER
COUPON
YIELD CALL PROTECTION

' AMOUNT.
(MIL. $)

ESTIMATED PROPORTION SOLD

None

CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK
ORIGINAL INCREASE RATING AND ESTIMATED PROISSUER
COUPON
YIELD IN YIELD CALL PROT. PORTION RELEASED

DATE
OFFERED

AMOUNT

INVENTORIES 1
MUNICIPALS
BLUE LIST
IN SYNDICATE

DATE
1971 - July

August

16
23
30
6
13

CORPORATES
IN SYNDICATE

475
561
582

115
152
160

116
107
57

551?
542

115
168

0
0

N.C. - No call protection.
1

m i l U

n S

th!
i"
°

which is daily average


° f ^ 0 l l a ^ S ' B l u e L i S t i s d a i l y average for week ended Friday, except for latest week
of three days ended Wednesday. All other figures are as of Friday.

TABLE 3: High Grade Bond Yields

NEW
CORPORATE
Aaa i

DATE

MOODY'S SEASONED
CORPORATE
Aaa 2

U.S. GOVERNMENT
20-YEAR
CONSTANT
MATURITIES J

BOND
BUYER'S
SEASONED
MUNICIPALS 4

1969 - High
Low

8.85 (12/5)
6.90 (2/21)

7.84 (12/26)
6.55 (1/12)

6.97 (12/26)
5.96 (1/24)

6.90 (12/18)
4.82 (1/28)

1970 - High
Low

9.30 (6/19

8.60 (7/3)
7.48 (12/31)

7.55 (5/29)
6.17 (12/18)

7.12 (5/29)
5.33 (12/11)

1971 - High
Low

8.23 (5/12)
6.76 (1/29)

7.71 (8/13)"

7.06 (2/12)

6.51 (6/18)
5.69 (3/23)

6.23 (6/24)
5.00 (3/18)

1971-

July 23
30

7.90
8.07

7.63
7.66

6.39
6.45

5.97
6.05

Aug.

8.02

7.69
7.71

6.44
6.41

6.07
6.03

1

7.68 (12/18)

6
13

7.97

New corporate issues, with call protection, adjusted (as described in
footnote 1 of Table 1) to a Aaa basis.
Weekly average of daily figures. Average term of bonds included is
22-24 years.
3
Weekly average of daily figures.
4
Thursday figures. The average rating of the 20 bonds used in this index
I falls midway between the four top groups as classified by Moody's Investors Service.
Note--Highs and lows are for individual series and may be on different dates
for different series.
2




6
TABLE 4: Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
GROSS PROCEEDS
CORPORATE 1

PERIOD
1971

STATE AND LOCAL 2

1970

1969

1971

1970

1969

January
February
March

3,115
3,000
6,075

2,636
1,802
3,539

2,075
2,045
2,098

2,705
1,839
2,144

1,340
1,214
1,555

1,262
987
538

April
May
June

4,007
3,174
4,100e

3,170
3,909
3,389

2,748
2,076
2,530

1,907
2,135
2,008

1,647
996
1,085

1,801
1,110
737

July
August
September

4,000e

2,768
2,274
3,518

2,478
1,427
2,427

1*8506

1,348
1,359
1,758

1,097
808
559

3,777
4,182
3,980

1,933
2,375
2,532

1,924
1,748
2,190

1,280
886
816

7,977
10,468
8,560
11,939

6,218
7,354
6,332
6,840

6,688
6,050

4,109
3,728
4,465
5,862

2,787
3,648
2,464
2,982

j
j

18,445
27,005
38,944

13,572
19,904
26,744

12,738

7,837
12,302
18,164

6,435
8,899
11,881

\
j
I

October
November
December
1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

1st half
Three quarters
Year

12,190
ll,281e

23,471e

!

Excluding finance companies 3
1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

6,170
7,037

-Year
1
2
3

Securities and Exchange Commission estimates of gross proceeds.
Investment Bankers Association of America estimates of principal amounts.
Total gross proceeds excluding offerings of sales and consumer finance
companies.




i

TABLE 5: New Corporate Security Issues, Type of Issue and Issuer
(In millions of dollars)

QUARTER
OR
MONTH

TOTAL

GROSS PROCEEDS BY
TYPE OF ISSUE
COMMON
BONDS
AND
MEMO:
PUBLICLY PRIVATELY PFD.
ISSUES INCLUDED
MFG.
PLACED
STOCK
FOREIGN | CONVERTIBLE
OFFERED

GROSS PROCEEDS BY
TYPE OF ISSUER
PUBLIC
UTILITY

COMMUNICATIONS

OTHER
ISSUERS 1

1970 - II

10,468

6,994

1,282

2,190

135

III
IV
1971 - I
II

8,560
11,938
12,190
11,688

5,987
7,827
8,369
6,546

914
1,421
1,516
1,758

1,659
2,690
2,306
3,384

83
226
84
215

710
287
737
824
1,351

2,445
2,314
3,169
3,794
3,130

2,812
2,714
3,406
3,197
2,910

2,162
868
1,346
1,606
896

3,048
2,663
4,020
3,594
4,753

1970 - June
July
Aug.
Sept.
Oct.
Nov.
Dec.

3,389
2,768
2,274
3,518
3,777
4,181
3,979

1,931
1,831
1,731
2,425
2,390
3,001
2,436

436
320
205
389
304
283
834

1,021
617
338
704
1,083
898
709

26
68
11
4
56
11
159

82
107
i • 59
121
388
184
165

939
638
682
994
1,006
1,107
1,056

1,103
843
630
1,241
1,101
1,350
955

353
144
279
445
371
693
282

994
1,143
682
838
1,300
1,033
1,687

1971 - Jan.
Feb.
Mar.

3,115
3,000
6,075

2,033
2,201
4,135

594
275
647

489
524
1,293

43
3
38

716
661
2,417

676
1,069
1,452

391
683
532

1,332
587
1,675

Apr.
4,042
2,116
507
1,419
116
384
1,135
1,267
May
3,271
2,148
491
633
47
255
588
789
June
2,282
760
1,332
4,375
52
712
1,206
1,055
e/julv
4.000
1.250
500
2,250
n.a.
Ann
165
560
Other issuers are extractive, railroad and other transportation, real estate
and finance, and commercial and other.
Source: Securities and Exchange Commission. Quarterly supplements are available.

273
405
218
W 1 5

1,367
1,489
1,897
1 22S




99
168
557

TABLE 6: Large Long-term Public Security Issues for New Capital
(Other than U.S. Treasury) 1
August 2 thru August 13., 1971

ISSUER

TYPE

2

AMOUNT )
(MILLIONS
OF
DOLLARS)

MATURITY

COUPON
RATE OR
NET INTEREST COST

OFFERING
YIELD

MOODY'S
RATING

Corporate
Gulf Life Holding Co.
Pepsico Inc.
Dayton Pwr & Light Co
Dayton Pwr & Light Co
Illinois Pwr Co
Louisville Gas & Elec Co
Indiana Bell Telephone Co
Consumer Pwr Co
Jersey Central Pwr & Light Co
Kansas-Nebraska Nat. Gas Co
Duke Pwr Co
First at Orlando Corp
Weyerhaeuser Co
City Investing Co




25.0
Debs
50.0
Debs
45.0
1st mtg
20.0
Pref stk
30.1
Pref stk
100.0
1st mtg
100.0
Debs
120.0
1st mtg
25.0
1st mtg
15.0
S.F. debs
Cum pref
60.0
stk
15.0
Debs
. Conv pref
100.0
stk
50.0
Sub debs

1991
1996
2001

\ 5.50
4.75
8.13

5.50
4.75
8.15

Baa
A

Aaa
Aa
Aaa
Baa
A

—
--

2001
2011
2001
1996
1991

8.20
8.13
8.13
9.13
8.45

8.10
8.20
8.13
8.92
8.45

1996

8.20
5.75

8.20
5.75

1991

8.00

8.00

—

TABLE 6: Large Long-term Public Security Issues for New Capital (continued)
Z
(Other than U.S. Treasury) 1

!
ISSUER

TYPE 2

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

Aug. 2
COUPON
RATE OR
NET INTEREST COST

thru Aug. 13. 1971
1
1 OFFER i
IIX.
J YIELD

MOODY'S
RATING

State and Local
Houston, Texas
New York State Dorm Authority
Los Angeles DWAP
Los Angeles DWAP
Greater Anchorage Area Brough
Alaska
Albany Co., N.Y.
Memphis, Tenn.
Detroit City Sch Dist
Cleveland, Ohio
East Bay MUD, Calif.
East Bay MUD, CAL
Connecticut
Louisiana Stadium Exp Dist.
Louisiana Stadium Exp Dist.
Texas Wtr Dev
Sacramento Coram Center Auth, Calif
Sacramento Comm Center Autt^ Calif
Maryland-National Capital Park &
Planning Comm.
Cornell Twnship, Mich
Cornell Twnship, Midh
Other
International Bk for Beconstr & Dev..
*

G.O.
Rev.
Rev.
Rev.

26.5
26.9
19.5
19.5

1972-1991
1974-2003
1977-1996
2011

5.32
6.83
5.90
5.90

3.40-6.00
4.50-6.90
4.50-5.80
6.00

Aa
Aa

G.O.
G.O.
G.O.
G.O.
G.O.
Rev.
G.O.
G.O.
Rev.
Rev.
Rev.
Rev.
Rev.

10.0
70.0
29.0
22.9
15.0
12.0
12.0
100.0
92.6
20.4
25.0
13.6
5.5

1973-1991
1972-1995
1973-1999
1972-1981
1972-1991
1972-1991
1972-1991
1972-1991
1983
1975-1982
1972-1986
2006
1975-1991

6.76
5.99
5.80
5.75
5.98
5.26
5.26
5.30
6.00
6.00
4.95
6.22
6.22

4.75-7.10
3.70-6.30
3.60-6.10
4.00-6.00
3.70-6.40
3.40-5.95
3.40-5.95
3.30-5.75
5.94
4.20-5JW
3.30-5.30
6.00
4.25-6.00

Baa
A
Aa
Baa
A
Aa
Aa
Aaa
A
A
Aaa
A
A

G.O.
G.O.
G.O.

11.5
6.2
5.5

1972-1996
1976-1987
1996

5.48

3.60-6. 10
4.75-6.:30
6.75

A

1996

8.13

Bonds

175.0

—-

6.75

\

x

8.13

Aa
——

——

—

Rights offering.

1

Includes corporate and other security offerings of $15 million and over;
State and local security offerings of $10 million and over.
2
In case of State and local government securities, G.O. denotes general obligation;
Kev.-Ut., revenue obligations secured only by income from public utilities;
Rev.-Q.-Ut., revenue bonds secured only by income from quasi-utilities; Rev.-S.T.,
revenue bonds secured by revenue from specific taxes only; Rev.-Rent., revenue
bonds secured solely by lease payments.
3
Includes foreign government and International Bank for Reconstruction and
FRASER
Development issues and non-quaranteed issues by Federal Agencies.

Digitized for


10
TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury) 1

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

Corporate
Instrument System Corp
GAC Properties Credit Inc.
Public Service Elec & Gas Co
Tidewater Marine Service Inc
Cincinnati Bell Inc
Colwell Mtge Trst
First Peima Mtg Trst
Alberta Gov't Tel Commission
Arkansas Pwr & Light Co
Arkansas Elec Co
Penna Elec Co
Baltimore Gas & Elec Co
Hall Crtift Homes Inc
Southern Calif Edison
Southern Bell Tel Co
Southern Bell Tel Co
Appalachian Pwr Co
Hawaiian Telephone Co
Florida Pwr & Light Co
Consolidated Edison Co
ZAYRE CORP
Florida Gas Co
Equimark Corp
General Tel Co of the S.E.
Barnett Mtg Trst
Central Tel & Util Corp
Microdot Inc.
Beneficial Corp
Beneficial Corp
Monumental Corp
Cleveland Elec 111
Valu Vend Credit Corp
Pub Serv Co of N. Mexico
Genstar Ltd
Continental Can Co
G e n 1 1 Portland Cement Co
C&P Tel Co of Md
Bank of California
Central Tel Co
*Kentucky Utilities Co
VEPCO
VEPCO
Iowa Public Service
Public Service Co of N. Mexico
San Diego Gas & Elec Co

Southwestern
Bell Telephone
Lincoln First Banshare
http://fraser.stlouisfed.org/

Federal Reserve Bank of St. Louis

Debs
Debs
Debs
Debs
Debs
Debs
Conv debs
Debs
Pfd stk
1st Mtg
Debs
1st mtg
Debs
1st ref mtg
Debs
Notes
1st mtg
Bonds
1st mtg
1st mtg
S oF. debs
Conv debs
Debs
Bonds
Conv debs
1st mtg
Notes
Bonds
Bonds
Notes
Com stk
Debs
1st mtg
Debs
Notes
Debs
Debs
Conv debs
1st mtg
1st mtg
1st mtg
Com stk
1st mtg
1st mtg
Bonds
Debs
Debs

25.0
50.0
75.0
15.0
50.0
15.0
30.0
25.0
15.0
30.0
20.0
60.0
15.0
100.0
100.0
75.0
35.0
20.0
100.0
150.0
25.0
25.0
15.0
40.0
20.0
20.0
20.0
50.0
25.0
20.0
50.0
25.0
20.0
25.0
60.0
22.0
100.0
20.0
25.0
35.0
50.0
80.0
15.0
20.0
45.0
200.0
35.0

'

August
August
August
August
August
August
August
August
August
August
August
August
August
August
August
August
August
August
August
August
August
August
August
August
August
August
August
August
August
August
August
August
August
August
August
August
August
August
August
September
September
September
September
September
September
September
September

16
16
17
17
17
17
18
18
19
19
19
23
23
23
24
24
25
26
30
31

—

7
8
8
14
16
16

11

TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury) 1

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

State and Local
Tulsa, Okla
New York St. Housing Fin. Agency
Dallas-Ft. Worth Reg Arpt, Tex
Washoe Co, S/D, Ohio
Virginia Pub Sch Auth
Baton Rouge, La
East Baton Rouge Parish, La.
Norfolk Port & Indus Auth, Va
Ohio, State
*Ind Trans-Thoroughfare Auth, Ind
Los Angeles, Calif
South Carolina Pub Ser

6.0.
Bond
Rev.
Rev.
G.O.
G.O.
15.0
G.O.
G.O.
G.O.
G.O.
Rev.

16.0
166.0
75.0
10.0
13.0
15.1
15.0
100.0
100.0
26.0
20.0
100.0

August
August
August
August
August
August
August
August
August
August
August
August

;

18
18
23
24
24
25
25
25
26
26
31

Other
The Guam Economic Dev Auth

*
1
2

Rev

45.0

September

1

Included in table for first time.
.
Includes corporate and other issues of $15 million and over; State and local
Government issues of $10 million and over.
Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues of Federal Agencies.




12

Table 8

STOCK PRICES AND VOLUME
STOCK PRICES 1 -

TRADING VOLUME 2 -

DATE
NYSE INDEX 3 -

AMEX 4 -

D J . INDUSTRIALS

AMEX

NYSE

1969 - High
Low

50.32 (5/14) 968.85 (5/14) 32.91 (1/3)
49.31 (7/29) 769.93 (12/17] 25.02 (7/29)

i6.rrar/29)
8.6 (8/29)

8.0
3.6

(1/31)
(11/21)

1970 - High
Low

52.36 (1/5) 842.00 (12/29] 27.02 (1/8)
37.69 (5/26) 631.16 (5/26) 19.36 (5/27)

18.5 (12/4)
7.8 (8/14)

7.1
1.8

(1/2)
(8/14)

1 9 7 L - High
Low

57.76 (4/28) 950.82 (4/28)
48.73 (1/4) 830.57 (1/4)

26.68 (4/28)
22.72 (1/4)

22.1 (2/12)
11.0 (8/13)

6.7
2.7

(2/12)
(8/13)

1971 - July 2
9
16
23
30

55.18
55.76
54.97
54.82
52.80

890.19
901.80
888.51
887.78
858.43

25.52
25.83
25.61
25.44
24.61

12.5
12.9
13.4
12.2
12.6

2.9
3.4
3.2
2.8
3.2

52.07
52.88

850.61
856.02

24.37
24.59

12.5
11.0

3.0
2.7

^

Au&

6
13

NOTES:
1.

Figures other than highs and lows are Fridays only.
Highs.and lows are for the year and are not necessarily for Fridays.

2.

NYSE is the New York Stock Exchange; AMEX is the American Stock Exchange.
Volume figures are daily averaged for the entire week,
(millions of shares).
Trading is normally conducted for 5-1/2 hours per day and 5 days per week, or
In recent years, however abbreviated trading to the extent, and over the time
Hours/
Days/
From
Through:
Day
Week
January 3, 19*9
July 7, 1969
January 2, 1970

July 3, 1969
December 31, 1969
May 1, 1970

3.

12/31/65 - 50

4.

Average dollar value of shares listed.




4
4-1/2
5

5
5
5

27-1/2 hours per week.
periods, shown below:
Hours/
Week
20
22-1/2
25

13
TABLE 9: Security Credit

END OF PERIOE

CUSTOMERS 1
NET DEBIT
BALANCES

CREDIT EXTENDED TO
MARGIN CUSTOMERS BY:
BROKERS 1 | BANKS 2 | TOTAL

NET CREDIT
CUSTOMERS' NET EXTENDED BY
FREE CREDIT
BROKERS AND
DEALERS 3
BALANCES

Outstanding
ly/U-

3,860
June
3,800
July
.3,810
Aug.
Sept. .3,920
Oct.
.4,010
.4,010
Nov.
.4,030
Dec.

2,290
2,290
2,300
2,330
2,270
2,320
2,330

6,150
6,090
6,110
6,250
6,280
6,330
6,360

5,281
(4)
(4)
(4)
(4)
(4)
(4)

2,009 "S
(5)2,180
2,083 .
2,236
2,163
2,197
2,286

,4,000
4,090
4,300
4,530
4,620
4,720

2,300
2,330
2,360
2,340
2,340
2,390

6,300
6,420
6,660
6,870
6,960
7,110

(4)
(4)
(4)
(4)
(4)
(4)

2,452
2,743
2,798
2,660
2,550
2,440

(4)
(4)
(4)
(4)
(4)
(4)

-300
- 60
10
110
90
- 20

- - 10
30
- 60
50
10

-300
- 60
20
140
30
50
30

-152

-213
171
97
153
- 73
34
89

- 61

- 30
90
210
230
90
100

- 30
30
30
- 20
- 50

- 60
120
240
210
90
150

.1971 - Jan.
Feb.
• Mar.
Apr.
-May
June

3,272
(4)
(4)
(4)
(4)
(4)
(4)

Change in
Outstanding
1970-

June
July
Aug.
Sept.
Oct.
Nov.
Dec.

1971 - Jan.
Feb.
Mar.
Apr.
May
June

1

2
3

4

.

-

-

-

-

-

-.

-

-'
-

-

-

.

-

-

-

-

-

-•

-

-

-

166
291
55
-138
-110
110

-

-

-

-

-

-

. —
-

.

— •
-

-

-

—

—

—

—

—

—

Margin debt, as reported by the New York Stock Exchange. Although margin debt
until March 1968 included loans secured by U.S. governments, the amount of such
loans included is thought to have been small.
"Bank loans to others than brokers and dealers for purchasing or "carrying securities other than U.S. governments."
•
The difference between customers' net debit balances and customers'net free eredit balances, this figure represents the net credit extended by brokers and
dealers to the nonfinancial public.
"
NOTE: With the exception of bank loan data, figures are supplied by the New York
Stock Exchange and are end of month data. Bank loans are for weekly reporting
large commercial banks. Broker data includes loans for regulated securities; bank
data includes loans for the purpose of purchasing or carrying any security, whether
regulated or not.
Series discontinued.
in series.
forChanges
FRASER

Digitized5


TABLE 10: Savings Flows at Nonbank Depositary Intermediaries
($ millions)
\

'
DATE

MUTUAL SAVINGS BANKS
NET
REGULAR DEPOSITS 3
NEW
ANNUAL
MONEY2
GROWTH
NET
1
RATE
FLOW

SAVINGS & LOAN ASSOCIATIONS
NET
SHARE CAPITAL
NEW
ANNUAL
MONEY 2
GROWTH
NET
1
FLOW
RATE

4,203
2,549
4,466

1,143
-763
936

7,432
4,200
11,173

224
-133
174

753
1,801
543

——

651
710
277

2,160
3,086
1,600

——

TOTAL
DEPOSITS
ANNUAL
NET
GROWTH
RATE 1
FLOW

NET
NEW
MONEY2

Not Seasonally Adjusted
1968
1969
1970

7.0
4.0
6.7

1970 - May
June
July

326
504
297

•—

1971 - May r/
June r/
July e/

800
900
450

——

---

--

6.0
3.2
8.2
---

--

2,738
-1,003
5,295

11,635
6,749
15,639

705
280
485

1,079
2,305
840

2,069
1,344
n. a.

2,960
3,986
2,050

6.3
3.4
7.7

3,881
-1,766
6,231

— "»

929
147
659

--

2,720
2.05,4
n.a.

Seasonally Adjusted
January
February
March
April
May r/
June r/
July e/

885
939
1,287
1,176
776
783
575

15.5
15.8
21.2
19.0
12.4
12.4
9.3

3,619
2,472
3,376
2,996
1,996
2,146
2,647

29.8
19*8
26.7
23.1
15.1
16.1
19.5

4,504
3,411
4,663
4,173
2,772
2,929
3,222

25.1
18.5
24.9
21.8
14.2
14.9
16.1

Annual growth rate for monthly data is the annualized monthly percentage increase in deposits.
Net New Money is new deposits net of both withdrawals and interest. Data for S&Ls are for
insured associations only, which represent 96% of industry total resources.
Regular deposits at mutual savings banks exclude items such as Christmas club and certain
escrow accounts, which represent a very small part of total deposits.
SOURCE: National Association of Mutual Savings Banks and Federal Home Loan Bank Board.




TABLE 11: Mortgage Commitments at Selected Thrift Institutions

DATE

TOTAL

OUTSTANDING COMMITMENTS
ALL
MUTUAL
SAVINGS
SAVINGS &
LOAN
BANKS
(N.Y. STATE)
ASSOCIATIONS

TOTAL

1

NET CHANGE
ALL
SAVINGS &
LOAN ,
ASSOCIATIONS

MUTUAL
SAVINGS
BANKS
(N.Y. STATE)

(Billions of Dollars, Seasonally Adjusted) 1/
1970 - June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1971 - Jan.
Feb.
Mar.
Apr.
May r/
June

8.2

8.6

6.1
6.5

9.8
8.9
9.3
9.6

6.8

10.4

8.3
8.9

10.1
11.2
12.6

3->
16.1

7.1
7.5
7.8

8.1

10.1
11.1

12.2-£/
13.0

2.1
2.0

.17
.37

.26
.41

-.09
-.04

2.0
1.8
1.8
1.8
2.0

.21
.25
.30
.35
.51

.29
.36
.37
.34
.28

-.08
-.11
-.07
.01
.23

2.1
2.3
2.5
2.8
3.1
3.1

.25
.80
1.36
1.30
1.56
.77

.20
.60
1.16
1.01
1.21
.72

.05
.20
.20
.29
.34
.05

Based on data from Federal Home Loan Bank Board and Savings Banks Associations of
New York State. Data for savings banks and S&L's include a minor amount of nonresidential commitments. S&L commitments include loans in process. Net changes
are derived directly from unrounded outstandings levels as reported and after
seasonal adjustment by Federal Reserve. Subtotals may not add to totals because
of rounding.




/
16

TABLE 12: Net Change in Mortgage Holdings

DATE

TOTAL
INCLUDING
FNMA-GNMA

1

FINANCIAL-INSTITUTIONS
MUTUAL
SAVINGS &
SAVINGS
COMMERCIAL
LOAN
BANKS
BANKS
ASSOC.

TOTAL

LIFE
INSURANCE
COMPANIES

Not Seasonally Adjusted
20,016
23,781
24,189

21,822

18,219
21,273
19,814
16,913

4,639
6,677
5,404
2,462

3,153
2,787
2,682
1,845

7,520
9,350
9,676
10,288

2,907
2,459
2,052
2,318

Mar.
Apr.
May

1,154
1,421
1,621

625
944
1,243

49
125
187

153
160
144

198
486
723

225
173
189

Mar.
Apr.
May

2,690
2,810
n.a.

2,690
2,920
n.a.

1,765
2,144
2,182

79
20

416
631
789
1,055
983
1,104
1,175
1,289
1,710
1,311
1,425
1,774
2,044
2,092

191
199
222
213
83
151

1967
1968
1969
1970 £/

1971

Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May

1,347
1,485
1,749
2,083
1,917
2,192
2,128
2,049
2,604
1,860
1,997
2,888
2,739

840
1,050
1,281
1,575
1,509
1,828
1,808
1,820
2,504
1,893
2,084
2,896
2,818

346
500
256
500
315
300
Seasonally Adjusted
157
76
155
65
189
81
142
165
175
268
245
328
138
295
176
224
250
312
175
383
217
345
380
588
283
453
325
240

200
131
232
24
97
154
38

to Call Report data on real estate loans outstanding as available. Other data
derived from mortgage debt outstanding as reported separately by National Assn.
of Mutual Savings Banks, Federal Home Loan Bank Board, Institute of Life Insurance
and, through August 1968, the Federal National Mortgage Association, and thereafter by FNMA and the Government National Mortgage Association. Data for mutual
savings banks and for Life Insurance companies may differ somewhat from those
derived from regular quarterly series because of minor conceptual differences for
which adjustments are not made in the monthly series. Altogether, these groups
accounted for 84 per cent of the net increase estimated for all holders in 1970.




IT

TABLE 13: Net Increases in Mortgage Debt Outstanding

1

Billions of dollars, SAAR QUARTER

RESIDENTIAL 3

TOTAL

1- to 4FAMILY

MULTIFAMILY

5, . 5
4, . 1

8. . 2
6.. 0

2.2
1.8

7
8
8
8

.3
.4
.8
.4

1.8
1.8
2.5
2.8

COMMERCIAL

MULTI-AND
COMMERCIAL

FARM

1966 - I I
IV

18 . 6
15 . 1

10.9
9 .1

8 .3
7.0

2 .6
2 .1

1967 - I
II
III
IV

15
20
26
27

10
13
19
19

.3
.9
2
8

7 .0
10
15 . 3
16, . 0

3 .3
3 .4
3 .9
3 .8

3 .9
5 .0
4 .9
4,. 8

1968 - I
II
III
IV

27, . 7
2 6 .. 2
2 6 .. 0
29., 6

19 , 0
18.. 2
17. 7l
2 0 .,2

15. . 8
15. . 0
1 4 .. 1
16. . 4

3, , 1
3. , 2
3. . 4
3. . 8

6.. 4
5. . 9
6. . 5
7. .5

9 .4
9. 2
10.2
11. ,11

2.3
2.2
1.8
1.8

1969 - I
II
III
IV

31..3
28.,9
2 6 . ,5
25. 1

25., 0
2 1 . ,5
19. 3
18. 3

1 8 .. 6
1 6 . ,8
1 4 .,6
13. 0

4.4
4 ., 7
4.7
5. 3

6. . 2
5 . ,2
5. 3
5. 4

1 0 .. 4
10. 1
10. o
10. 7

2.2
2.2

1970 - I
II
III
IV

2 0 . ,2
22. 7
28. 5
30. 5

13.
16.
21.
21.

8.
11.
14.
15.

5.
5.
6.
6.

0
4
3
4

4. 9
4.3
5. 2
6. 9

9.
9.
11.
13.

9
7
5
3

1.5
1.5
2.1

15. 3

2.0

1971 - IP

.9
.7
.6
.3

32. 9

,

8
9
2
6

22. 6

8
5
9
1

15. 6

7. 0

8. 3

H
1.4

h1

;
>

1 Derived from data on mortgage debt outstanding from Federal Deposit Insurance
Corporation, Federal Home Loan, Bank Board, Institute of Life Insurance, National Association of Mutual Savings Banks, Departments of Commerce and Agriculture, Federal National Mortgage Association, Federal Housing Administration,
Veterans Administration and Comptroller of the Currency. Separation of nonfarm mortgage debt by type of property, where not available, and interpolations
and extrapolations, where required, estimated mainly by Federal Reserve.
2 May differ somewhat from related flow of funds series mainly because of more
aggregative type of seasonal adjustment.
.
3 Residential mortgage debt includes nonfarm only and is sum of 1-to 4- family
and multifamily mortgage debt combined.




TABLE 14: FNMA Weekly "Auction" Results

WEEK
ENDED

COMMITMENTS IN $ MILLIONS
ACCEPTED
1-YEARN
90TOTAL
6TOTAL
MONTH & OVER
OFFERED
DAY

IMPLICIT YIELD 2 (per cent)
90DAY

MONTH

6-

1-YEAR
& OVER

126.9
687.2

54. 5
313. 9

39.8
154.0

9.4
126.6

5.4
33.4

7.32
7.43

7.45
7.54

7.53
7.57

10
24

1,168.0
785.7

236. 8
151. 6

145.8
44.6

71.3
84.4

19.7
22.6

7.57
7.95

7.68
7.97

7.74
8.03

1
14
28

322.4
664.4
539.3

146.,6
191.,2
262,,2

77.1
133.7
191.8

57.8
47.3
60.3

11.6
10.2
10.4

8.05
7.91
7.92

8.18
8.15

8.22

8.16
8.22
8.28

July 12

606.0

241,.1
183..3

161.8
183.3

58.2

21.1

8.23

8.31

1971 - Apr. 12
26
May

June

28

689.0

--

—

1

Note: Under the FNMA auction system, approved sellers of Governmentunderwritten mortgages bid for FNMA forward purchase commitments. Bids
accepted by FNMA are for delivery at the seller's option, and at any
time within the specified period. Bids on proposed homes relate to
construction not yet started on which mortgages may be delivered only
after completion and occupancy.
For "proposed construction" of new homes only.
2

Average secondary market yield after allowance for commitment fee and
required purchase and holding of FNMA stock, assuming prepayment of
15 years for 30-year Government-underwritten mortgages. Yields shown
are gross, before deduction of 38 basis points fee paid by investors
to servicers.




19
TABLE 15: Private Housing Starts and Permits
STARTS

DATE

1970 - June
July
Aug.
Sept.
Oct.
Nov.
Dec.

SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE

TOTAL

UNADJUSTED
TYPE OF FINANCING
OTHER

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2

1,393
1,603
1,425
1,509
1,583
1,693
2,054

835
827
838
881
890
934
1,240

558
776
587
627
693
759
814

135.2
140.8
128.7
130.9
140.9
126.9
121.4

40.7
43.3
34.1
34.3
40.4
33.7
63.2

5.1
5.3
5.6
5.3
5.8
5.5
5.7

89.4
92.1
87:7
91.3
94.7
87.2
52.5

1,285
1,309
1,378
1,388
1,523
1,487
1,768

1,725
1,754
1,959
Apr.
1,912
May
1,959
June p/ 1,982

946
985
1,048
1,098

779
769
911
809
839
817

110.6
102.2

32.2
27.3
33.4
44.6
40.7

4.6
4.7

72.8
68.4
127.6
148.1
147.9

1,635
1,563
1,627
1,638
1,927
1,817

1971 - Jan.
Feb.
Mar.

1,120

1,165

167.9

201.1
196.9
192.3

8.3

Total starts are Census estimates including farm for both permit-issuing and
non-issuing areas. A dwelling unit is started when excavation begins; all units
in an apartment structure are considered started at that time. FHA and VA
starts are units started under commitments by these agencies to insure or guarantee the mortgages. As reported by FHA and VA, a unit is started when a field
office receives the first compliance inspection report, which is made before
footings are poured in some cases but normally after the foundations have been
completed. Other starts are derived as a residual, although total and FHA and
VA starts are not strictly comparable in concept or timing; other starts include both units financed by conventional mortgages and units without mortgages.
Building permits are for 13,000, or all known permit-issuing "places. Unlike
starts, seasonally adjusted building permits reflect direct adjustment for
differences in the number of working days per month, as well as other
differences in timing and coverage.




20
TABLE 16: Mortgage and Bond Yields
FHA
MORTGAGES
DATE
30-year

2

CONVENTIONAL
MORTGAGES
3

SPREAD BETWEEN YIELDS
ON CONV. &
FHA MORTGAGES 5

1

NEW
Aaa CORPORATE
BONDS
4

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES 6

1968 - High
Low
1969 - High
Low

7.52
6.78
8.62
7.99

7.40
6.75
8.35
7.55

.02
-.27
--13
-.40

6.79
6.15
8.75
6.91

1.20
.26
1.08
-.13

1970 - High
Low

9.29 ,
8.40

8.60
8.30

-.10
-.74

9.11
7.80

.99
.01

.28
.18
-.10
-.19

7.24
7.28
7.46
7.57
8.01
7.90

n.a.
n.a.
-.14
-.20
-.26
-.01

1971 - Jan,
Feb.
Mar.
Apr.
May
June

1

2

—

7.32
7.37
7.75
7.89

7.95
7.75
7.60
7.55
7.65
7.70

.

Neither mortgage nor bond yields include allowance for servicing costs which are
much- higher for mortgages than for bonds. Generally, bonds pay interest semiannually; mortgages, monthly. Mortgage yields, if computed as equivalent to
a semi-annual interest investment, would be slightly higher than given in the
table.
Based on FHA-field-office opinions about average bid prices in the private
secondary market for new-home mortgages for immediate delivery. Data shown
are for 30-year mortgaged with minimum downpayments, and weighted by probable
volume of transactions. Yields computed by FHA, assuming prepayment period of

3

15 years for 30-year mortgages.
Based on FHA-field-office opinion on typical interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring office cities.

4
5
6

See note for Table 1 .
.
Yield spread equals conventional mortgage rate less FHA secondary market yield.
Yield spread equals FHA secondary market yield less new Aaa corporate bond yield.




21
TABLE 17: Conventional Mortgage Terms
NEW HOMES

DATE

CON- FEES &
TRACT CHARGES EFFEC- MATURITY
(YEARS)
(PER
RATE
TIVE
CENT) RATE
(PER
CENT)
3
2

LOAN/
PRICE LOAN
RATIO AMT.
(PER C$000)
CENT)
4

1

EXISTING HOMES
CON- FEES &
LOAN /
TRACT CHARGES EFFEC- MATU- PRICE
(PER
RATE
TIVE
RITY RATIO
CENT) RATE (YEARS) (PER
(PER
CENT)
CENT)
2
3

LOAN
AMT.
($000)
4

1970
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1971
Jan.
Feb.
Mar.
Apr.
Mayr/
June

! 1.
t
i
V
i
!
1

\2
1

• 3

8.31
8.32
8.35
8.31
8.33
8.26
8.20

0.99
1.01
0.98
1.03
1.05
0.99
1.07

8.48
8.49
8.52
8.48
8.51
8.43
8.38

25.1
25.1
24.8
25.2
25.1
25.3
25.8

71,.3
71,.5
71,.6
72,.7
72,.4
72..1
73..8

25.6
24.9
25.5
25.3
24.8
25.2
25.8

8.19
8.21
8.25
8.27
8.20
8.18
8.12

0.98
0.95
0.89
0.88
0.88
0.85
0.85

8,.36
8,.37
8,,41
8 .42
8,.35
8,.32
8,.26

23 .0
23,.1
23 1
22 .8
22..8
22,.7
23,.3

71.5
71.5
71.5
71.7
71.5
71.5
71.9

21.5
21.7
21.4
21.0
20.5
21.1
21.7

8.03
7.74
7.52
7.37
7.36
7.38

0.92
1.00
0.83
0.73
0.71
0.73

8.18
7.91
7.66
7.49
7.47
7.50

25.8
26.2
25.9
26.3
26.1
26.3

73.,3
73. 9
73. 7
73. 6
- 74.0
73. 6

26.4
26.2
26.0
26.2
26.7
27.2

7.94
7.67
7.47
7.34
7.33
7.39

0.82
0.79
0.77
0.75
0.71
0.73

8. 08
7.,80
7. 60
7. 47
7. 45
7. 50

23..5
24.,0
24.,1
24.2
24. 0
24. 3

72.5
73.1
73.5
73.6
73.2
73.8

22.0
22.5
23.0
23.1
23.3
28^8

Compiled by Federal Home Loan Bank Board in cooperation with Federal Deposit Insurance
Corporation. Data are weighted averages based on probability sample survey of characteristics of conventional first mortgages originated by major institutional lender
groups (including mortgage companies) for purchase of single family homes. Data exelude loans for refinancing, reconditioning or modernization; construction loans to
home-builders; and permanent loans which are coupled with construction loans to ownerbuilders. Related series on conventional mortgage rates only, based on unweighted
opinions of field-office directors of the Federal Housing Administration, are available
somewhat sooner than the results of the FHLBB-FDIC survey, and are included-in the case
of new home mortgage r a t e s — i n Table 1 6 .
Fees and charges—expressed as a percentage of the principal mortgage amount--include
loan commissions, fees, discounts, and other charges which provide added income to the
lender and are paid by the borrower. They exclude any closing costs related solely to
transfer of property ownership.
Includes fees & charges amortized over a 10 year period in addition to the contract
interest rate.

. 4

Derived by FRB.