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mum

L.5.8 Coni

•

«

Ol.S. t

ntiol (F.R.)

DECONTBOLLED AFTER SIX MONTHS

CAPITAL
MARKET
DEVELOPMENTS

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




-

August 2, 1971

t

INDEX
Developments in the Corporate and Municipal Bond Markets
Capital Market Y i e l d s
Capital Market Volume
Stock Market
Mortgage Market

SYMBOLS:
e

Estimate

p

Preliminary

r
n.a.

Revised
Not available




TABLE 1: Yields, Volume and Reception
YIELDS
MOODY'S
SEASONED
NEW ISSUE 1
Aaa

WEEK ENDING:

1971 - July

2
9
16
23
30

August

6

August

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

n.a.

n.k.

275e

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

WEEK ENDING:

1971 - July

,

2
9
16
23
30

CORPORATE BOND MARKET
VOLUME;2
PER CENT
GROSS
SOLD BY END
BONDS SCHEDULED
OFFERINGS
OF WEEK
WITHIN 28 DAYS
88
86
58
84
80e

n!a!
n.a.
n.a.
n.a.
n.a.

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

5.90
5.70
5.70
5.65

6.19
6.06
6.03
5.97

331
633
347
564

88
86
76
83

5.80

6.05

276

75

n.a.

200e

n.a.

6

—-

BONDS SCHEDULED
WITHIN 28 DAYS
1,219
916
1,059
829
804
n.a.

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
' DATE ~
OFFERED

1
1

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

AMOUNT
(MIL. $)

DATE
OFFERED | RELEXSED
7/20

7/29

July

INVENTORIES 1
MUNICIPALS
BLUE LIST
|
IN SYNDICATE
2
9
16
23
30

8.50
8.80
8.20
8.20
8.55
7.19
7.85

/•

NR.
A
Aaa
Aa
A
Aaa
Aa

CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST
ORIGINAL
ISSUER
AMOUNT
COUPON
YIELD
8.00
7.95
Commonwealth Edison
100.0

DATE
1971 -

8.50
8.80
' 8.20
8.25
8.50
7.25
7.85

First Wise Bankshares
Interlake
Diamond State Tel
Phila Elect.
General Waterworks
Ford Motor
Columbia Broad Sys

50.0
50.0
15.0
80.0
25.0
100.0
50.0

7/29
7/28
7/27
7/26
7/22
7/22
7/15

495
499
488
561
577

91
129*
115
152
160

10
10
5
5
5
5
10

yrs.
yrs.
yrs.
yrs.
yrs.
yrs.
yrs.

ESTIMATED PROPORTION SOLD
85%
. 85%
85%
65%
90%
95%
95%

WEEK
INCREASE RATING AND ESTIMATED PROIN YIELD CALL PROT. PORTION RELEASED
5 yrs.
+18
70%

CORPORATES
IN SYNDICATE
113
27
116
107
57

No call protection.
All figures in millions of dollars. Blue List is daily average for week ended Friday,except for latest
which is daily average of three days ended Wednesday. All other figures are as of Friday.




TABLE 3: High Grade Bond Yields

DATE

NEW
CORPORATE
Aaa1

1969 - High
Low
1970 - High
Low
1971 - High
Low

8.85
6.90
9.30
7.68
8.23
6.76

1971 - July 2
/ 9
/
16
23
30

7.89
7.87
7.82
7.90
8.07

1

(12/5)
(2/21)
(6/19)
(12/18)
(5/21)
(1/29)

MOODY'S SEASONED
CORPORATE
Aaa 2
7.84
6.55
8.60
7.48
7.69
7.06
7.63
7.65
7.64
7.63
7.66

(12/26)
(1/12)
(7/3)
(12/31)
(6/4)
(2/12)

U.S. GOVERNMENT
20-YEAR
CONSTANT
MATURITIES 3
6.97
5.96
7.55
6.17
6.51
5.69

(12/26)
(1/24)
(5/29)
(12/18)
(6/18)
(3/23)

6.44
6.38
6.30
6.39p/
6.45

BOND
BUYER'S
SEASONED
MUNICIPALS 4
6.90
4.82
7.12
5.33
6.23
5.00
6.19
6.06
6.03
5.97
6.05

New corporate issues, with call protection, adjusted (as described in
footnote 1 of Table 1) to a Aaa basis.
2
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
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.

\ •


; . .. v


(12/18)
(1/28)
(5/29)
(12/11)
(6/24)
(3/18)

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

PERIOD
1971

STATE AND LOCAL 2

1

1970

1969

1

2,705
1,839
2,144

1,340
1,214
1,555

1,262
987
538

[

1,907
2,135
2,008

1,647
996
1,085

1,801 ?
1,110 ?
737 &

1,348
1,359
1,758

1,097
808 •
559 t

1,924
1,748
2,190

1,280 :
886
816

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

2,787 I
3,648 :
2,464
2,982 r

1970

1969

2,636
1,802
3,539

2,075
2,045
2,098

3,170
3,909
3,389

2,748
2,076
2,530

July
August '
September

2,768
2,274
3,518

2,478
1,427
2,427

October
November
December

3,777
4,182
3,980

1,933
2,375
2,532

12,190
ll,28le

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

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

6,688
6,050

23,471e

18,445
27,005
38,944

13,572
19,904
26,744

12,738

January .
February
March
April
May
June

1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

1st half
Three quarters
Year .

3,115
3,000
6,075
4,007
3,174
4,l00e

1971

-

7,837
12,302
18,164

6,435 :
8,899 j
11,881 »

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.




'

7

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.
OFFERED
PLACED
STOCK
FOREIGN | CONVERTIBLE

1970 - II

10,468

6,994

1,282

2,190

135

III
IV
1971 - I
II e/

8,560
11,938
12,190
11,281

5,987
7,827
8,369
6,515

914
1,421
1,516
1,618

1,659
2,690
2,306
3,145

83
226
84
n.a.

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

1971 - Jan,
Feb.
Mar.

3,115
3,000
6,075

2,033
2,201
4,135

594
275
647

489
524
1,293

. Apr.
* May
e/june

4,007
3,174
4,100

2,118
2.097
2,300

473
445
700

1,415
1 630
1,100

l

GROSS PROCEEDS BY
TYPE OF ISSUER
COMMUNICATIONS

PUBLIC
UTILITY

OTHER
ISSUERS 1

710
287
737
824
1,362

2,445
2,314
3,169
3,794
3,281

2,812
2,714
3,406
3,197
2,627

2,162
868
1,346
1,606
876

3,048
2,663
4,020
3,594
4,496

26
68
11
4
56
11

82
107
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

43
3
38

99
168
557

716
661
2,417

676
1,069
1,452

391
683
532

1,332
587
1,675

384
253
725

1,115
766
1,400

1,265
587
775

269
407
200

1,358
1,413
1,725

113
35
n.a.

1

.
1

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*.




/

/
TABLE 6: Large Long-term Public Security Issues for New Capital
(Other than U.S. Treasury) 1
July 5 thru July

ISSUER

TYPE 2

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

COUPON
RATE OR
NET INTEREST COST

OFFERING
YIELD

MOODY'S
RATING

Corporates
Penna, Pwr. & Lt. Co.

3um Pref.
Stk.
40.0
Sr.debs w/w
30.0
16.6
Dap. Stk.
1st. Mtg.
15.0
Lst. Mtg.
30.0
)ebs.
25.0
150.0
lst mtg
15.0
1st mtg
Conv. pref 1, 375.0
35.1
Com. stk
22.0
Com. stk
15.8
Benf int.
50.0
Debs

Carrier Corp.
Quaker St. Oil Refining Corp
Washington Gas Lt. Co.
Wisconsin Pwr. & Lt. Co.
American Century Mtg. Inv.
New Y o r k Telephone Co.
Indiana Gas Company
1
*AT&T
Duquesne Light Co.
Cartridge T.V. Inc.
Property Capital Trust
C.B.S.
Alza Corp.
5
Stk. w/w 18.0
Commonwealth Edison Co.
1st Mtg.
100.0
General Waterworks Corp.
1st Mtg.
25.0
International Harvester Cred Corp|Debs
?9ebs
50.0
Trans World Airlines, Inc.
3om. Stk.
37.9
Echlin Manufacturing
3.F.
15.0
Flintkote Co.
)ebs
40.0
Braniff Airway, Incorp.
Loan Certf.
17.4
Guardian Mtge Investor
Debs w/w
30.0
McDonald Corp.
Conv Debs
25.0
Alabama Pwr Co.
1st Mtg.
85.0
Cum pfd stk. 22.0
South Carolina Elec & Gas Co
Joy Manufacturing Co.
Com Stk
21.9
American Continental Homes, Inc. Conv Sub Debs 15.0




——

——

——

1996

8.13
.

--

——

8.25

A
•

——

1996
2001
1991
2008
1996

8.38
8.00
6.75
7.96
8.20

--

--

8.25
8.00
6.75
7.90
8.30
8.00

——

--

--

--

--

-—

7.85

7.85

A

2001
1996
1991

8.03
8.50
8.63

7.95
8.55
8.63

Aaa
A

1991
1996
1987
1986
1996
2001

5.20
8.20
11.13

5.20
8.20
11.13

Ba
A

4.50
8.50

4.50
8.40

Ba
A

7.00

7.00

——

-'

—

-*•

2001

—*

Aaa
A
-—
—
--

—i

—

«. —
=
——

1991

3 0 , 1971

9

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

1
ISSUER

TYPE 2

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

COUPON
OFFERRATE OR
ING
NET INTEREST COST | YIELD

MOODY'S
RATING

Corporation
totes (5 yrs)100.0
Chrysler Financial Corp.
totes
100.0
Ford Motor Co.
Debs
Diamond State Telephone Co.
15.0
1st mtg
80.0
Philadelphia Electric Co.
)ebs
50.0
Interlake Inc.
)ebs
50.0
First Wisconsin Bkshare
15.0
National Medical Enterprises Inc. Debs
Columbtis & Southern Ohio Elec. Co3om. stk.
15.4
Florida Telephone Corp
2om. stk.
15.1
Tucson G a s & Elec. Co.
3um pref stk. 15.0
Lorig Island Ligthing Co.
\
3um pref stk. 30.0




1976
1977
2001
1996
1996
1996
1996

9.00
7.20
8.20
8.20
8.80
8.50
6.75

8. 88
7. 19
,20
8.
,20
8,
8,
.80
8,
.50
. 6,
,75

——

Aaa
Aaa
Aa
A
•w

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

•

ISSUER

State and Local
Texas
|
Gloucester Co Server Auth, N.J.
Cook Co. HSD #214, 111.
Arlington Hgts & M t Prospect S/D
#214, 111.
Oregon, State of
Indianapolis, Ind.
Florida, State of
Ohio Pub Fac Comm.
Louisville & Jefferson Co Metro
Swr Dist, Ky.
Maryland, State of
Milwaukee, Wise.
New Jersey Highway Auth
Monroe Co. N.Y.
Monroe Co; N.Y.
Oakland Co., Mich.
Oakland Co., Mich.
Puerto, Rico




TYPE2

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

COUPON
RATE OR
NET INTEREST COST

G.O.
Rev.
G.O.

12.5
20.0
10.5

1976-1991

—

1975-1981

4.88

G.O.
G.O.

10.5
60.0

1975-1981
1976-1989

4.88
5.45

G.O.
Rev.
Bds.

12.0
25.0
50.0

1975-2001
1972-1996
1972-1996

5.73
6.17
6.07

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

30.0
79.3
15.0
80.0
10.0
12.1
11.7
7.4
40.0

1973-2001

6.05
4.97
4. 68
6.50
5.60
5.00
6.38
6.04-6.26
6.08

—-

1972-1981
2011
1972-2001
1972-1985
1974-1999
1972-2001
1973-1976

July 5 thru July 30,
OFFERING
YIELD

MOODY'S
RATING

3.90-5.50
4.75
4.10-5.00

Aaa

4.10-5.00
4.20-5.75/
6.10
3.90-6.00
3.40-6.50
3.70-6.40

A
Aa

3.70-6.25
3.07-5.30
3.30-4.84
6.50
3.25-5.85
3.30-5.30
4.00-6.60
3.50-6.75
3.65-6.00

A
Aa
A
Aaa
Aaa
--

Aaa
Aaa
A-l
A-l

1971

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

!
ISSUER

State and Local
Penna, State of
New York
•^Massachusetts
Boston, Mass.
Delaware Co. Comm Coll Auth, Pa.
Pueblo, Colo.
Port of Oakland, Calif.
Port of Oakland, Calif.
Santa Ana Unified S/D, Calif.
Murray State University, Ky
Gloucester, Mass.
Chicago Bldg. Commission
Houston ISD, Texas
Michigan St. Housing Dev Auth
Michigan St. Housing Dev. Auth
Murray State University Ky.
.Oklahoma City
Muskegon Co., Mich.
Other
HUD
HUD
*
1
2

3

TYPE 2

Bds.
G.O.
3*0.
G.O.
Rev.
G.O.
Rev.
Rev.
G.O.
G.O.
Bds.
Rev.
G.O.
Rev.
Rev.
Rev.
G.O.
G.O.

AMOUNT
(MILLIONS
OF
DOLLARS)

70.0
357.1
125.0
25.0
17.0
16.1
3.5
16.3
15.0
2.7
10.8
55.0
10.0
15.0
25.0.
12.5
14.1
16.0

MATURITY

''
COUPON
RATE OR
NET INTER
EST COST

1972-2001
2012
1972-2019
1972-91
1973-2000
1972-1985
1974-1981

5.79
7.58
5.43
6.48
6.18
6.20

1972-1995
1973-2000
1972-1991
1973-1991
1972-1981
1973-2004
1974-2015
1973-2000
1974-1996
1972-1991

J

3. 30-6.40
5. 50-7.80
3. 40-6.20
4. 25-7.00
--

Aa
Baa-1
Aa .
Baa
•

--

5.71
5.71

3,
,10-5.80
.25-5.80

--

5.58
7.07

.

MOODY'S
RATING

1,1
1(

YIELD

—

3.
,50-5.70
,00-6.75
5.
,00
8.
3.
,40-5.90
,25-7.20
4.
,40-6.00
3.
.50-6.90
3,
N,
,R.
.10-7.10
4,
4 .40-7.00
4 .25-7.20
3 .75-6.30
4 .15-5.85

--

--

July 5 thru July 30,1971

1
| OFFER -

6.48
4.19
6.92
6.92
7.08
5.36

—

---

Baa
Aa
A
A-l
A
A
Baa
\ A
Aa
• '

Bds.
Bds.

72.0
99.0

1972-2011
2007-2011

!

Aaa
All
fr
flights offering.
Includes corporate and other security offerings of $15 million and over;
State and local security offerings of $10 million and over.
In case of State and local government securities, G.O. denotes general obligation;
tie v.-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.
Includes foreign government and International Bank for Reconstruction and
Development issues and non-quaranteed issues by Federal Agencies.




3

12
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 •
Debs
*Hall Craft Homes Inc.
Debs
Gulf Life Holding Co.
Conv debs
Pepsico Inc.
Debs
Equimark Corp
Debs
Indiana Bell Tel. Co.
Debs
Louisville Gas & Elec Co
1st mtg
Dayton Pwr & Light Co.
Pref stk
Dayton Pwr & Light Co.
Jersey Central Per & Light Co. 1st mtg
1st mtg
Consumer Pwr Co.
Conv pref stk
Weyerhaeuser Co.
Debs
Public Service Elec & Gas Co
Public Service Elec & Gas Co
Debs
Debs
Cincinnati Bell Inc.
The Pub. Service Elec & Gas Cc Debs
Pfd stk
Arkansas Pwr & Light Co
Debs
Penna Elec Co
1st mtg
Arkansas Elec. Co
1st mtg
Baltimore Gas & Elec Co
Debs
Southern Bell Tele Co
1st mtg
Appalachian Pwr Co
Bonds
Hawaiian Telephone Co
1st mtg
Florida Pwr & Light Co
S.F. debs
Kansas-Nebraska Nat. Gas Co
S.F. debs
ZAYRE CORP
Conv debs
Florida Gas Co
Debs
City Investment Co.
Bonds
General Tel Co of the S.E,
Conv debs
*Barnett M t g Trst
1st mtg
Florida Pwr & Light Co
1st mtg
Central Tel & Util Corp
Notes
Microdot Inc.
Bonds
Beneficial Corp
Bonds
Beneficial Corp
Notes
Monumental Corp
Com stk
Cleveland Elec 111
Debs
Valu Vend Credit Corp
Debs
G e n 1 1 Portland Cement Co
Debs
C&P Tel C o of M d
Debs
GAC Properties Credit Inc
1st mtg
Pub Serv Co of N. Mexico
Conv debs
Bank of California
Debs
Genstar Ltd
Notes
Continental Can Co
1st mtg
VEPCO
Com stk
VEPCO
1st mtg
Iowa Public Service
Debs
Southwestern Bell Telephone




15.0
25.0
50.0
15.0
100.0
100.0
45.0
20.0
25.0
120.0
100.0
75.0
85.0
50.0
75.0
15.0
20.0
30.0
60.0
175.0
35.0
20.0
100.0
15.0
25.0
25.0
50.0
40.0
20.0
100.0
20.0
20.0
50.0
25.0
20.0
50.0
25.0
22.0
100.0
50.0
20.0
20.0
25.0
60.0
50.0
80.0
15.0
200.0

2
August
August
3
August
3
August
3
August
3
August
3
August
5
August
5
August
10
August
10
August
12
August
17
August
17
August
17
August
18
August
19
August
19
19
August
August
23
August
24
25
August
26
August
August
30
August
August
August
August
August
Augus t
August
August
August
August
August
August
August
August
August
August
August
August
August
August
August
September 8
September 8
September 14
^September

13
TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury)A s
o f
J u l y 3 0 >

TYPE

ISSUER
State and local
N.Y. State Dorm Authority
Houston, Texas
Middlesex Co. N.J.
Greater Anchorage Area Brough
Alaska
Albany Co., N.Y.
Cleveland, Ohio
Memphis, Tenn.
Detroit City Sch Dist
East Bay MUD, CAL
Connecticut
Sacramento Comm Center Auth, Cal
Calif.
Maryland-National Capital Park &
Planning Comm.
Texas W t r Dev. Bd
Los Angeles EWAP
Louisiana Stadium Exp. Dist.
New York St. housing Finance Agys
Baton Rouge, La.
East Baton Rouge Parish, La.
Norfolk Port & Indus. Auth, Va.
Ohio, State
South Carolina Pub Ser

AMOUNT
(MILLIONS
OF
DOLLARS)

I 9 7 1

APPROXIMATE DATE
OF OFFERING

i
Rev.
G.O.
G.O.

26.9
26.5
12.7

August
August
August

3
4
5

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

10.0
70.0
15.0
29.0
22.9
12". 0
100.0

August
August
August
August
August
August
August

9
10
10
10
10
10
11

Rev.

19.1

August

11

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

11.5
25.0
39.0
113.0
166.0
15.1
15.0
100.0
100.0
100.0

August
August
August
August
August
August
August
August
August
August

11
11
11
11
18
25
25
25
26

Rev.

45.0

Other
The Guam Economic Dev. Auth

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.




Table 8

14

STOCK PRICES AND VOLUME
STOCK P R I C E S 1 -

TRADING V O L U M E 2 '

DATE
NYSE INDEX 3 '

D J . INDUSTRIALS

AMEX *

NYSE

AMEX

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)

16,5 (3/29)
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)

1971 - 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)
12.5 (7/2)

6.7
2.9

(2/12)
(7/2)

1971 - July

55.18
55.76
54.97
54.82
52.80

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

2
9
16
23
30

890.19
901.80
888.51
887.78
858.43

NOTES:
Figures other than highs and lows are Fridays only.
Highs and lows are for the year and are not necessarily for Fridays.
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
Days/
Through:
Week
Dav
January 3, 1949
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

15
TABLE 9: Security Credit

END OF PERIOD

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

CUSTOMERS'
NET DEBIT
BALANCES

NET CREDIT
CUSTOMERS' NET EXTENDKD BY
BROKFRS AND
FREE CREDIT
DEALERS 3
BALANCES

Outstanding:
4,160
.1970 - May
3,860
June
3,800
July
3,810
Aug.
Sept. 3,920
4,010
Oct.
4,010
Nov.
.4,030
Dec.

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

6,450
6,150
6,090
6,110
6,250
6,280
6,330
6,360.

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

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

6,300 .
6,420
6,660
6,870
6,960

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

-200
-300
-60
10
110
90
- 20

- 40
- - 10
30
- 60
50
10

-240
-300
-60
20
140 •
30
50
30

1971 - Jan.
Feb.
Mar.
Apr.
May

- 30
90
210
230
90

- 30
30
30
- 20
- -

- 60
120
240
210
90

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

5,433
5,281
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)

2,222
2,009
(5)2,180
2,083
2,236
2,163
2,197
2,286

3,211
3,272
(4)
(4)
(4)
(4)
(4)
(4)

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

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

- 26
-213
171
97
153
- 73
34
89

-513
- 61

Change in
Outstanding:

1

2
3

-552
-152
-

-

-

-

-

-

• -

-

-

-

-

-

-

-

-

-

166
291
55
-138
-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 credit 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.




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

DATE

MUTUAL SAVINGS BANKS
NET
REGULAR DEPOSITS 3
NEW
ANNUAL
MONEY 2
GROWTH
NET
1
RATE
FLOW
4,203
2,549
4,466

1968
1969
1970

7.0
4.0
6.7

1970 - April
May
June

6
326
504

w « •
-

1971 - April r/
May £/
June j>/

801
800
900

—

1,143
-763
936

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

NET
NEW
MONEY 2

Not Seasonally Adjusted
2,738
6.0
7,432
-1,003
3.2
4,200
5,295
8.2
11,173

11,635
6,749
15,639

6.3
3.4
7.7

3,881
-1,766
6,231

188
705
280

213
1,079
2,305

- -

52
929
147

2,092
2,069
1,344

3,012
2,962
3,928

— - -

2,743
2,749
1,518

4,504
3,411
4,{>63
4,173
2,774
2,871

25.1
18.5
24.9
21.8
14.2
14.6

-136
224
-133

207
753
1,801

651
680
174

2,211
2,162
3,028

—

TOTAL
DEPOSITS
ANNUAL
NET
GROWTH
RATE 1
FLOW •

—

—

- - -

-

'- -

Seasonally Adjusted
1971 - January
February
March
April r/
May £/
June £/
1
2
3

885
939
1,287
1,176
776
783

15.5
15.8
21.2
19*0
12.4
12.4

-

-

—

—

— -

-

-

-

3,619
2,472
3,376
2,996
1,998
2,088

29.8
19.8
26.7
23.1
15.1
15.6

-

-

- . -

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 &
BANKS.
LOAN
(N.Y. STATE)
ASSOCIATIONS

TOTAL

1

NET CHANGE
ALL
SAVINGS &
LOAN
ASSOCIATIONS

MUTUAL
SAVINGS
BANKS
(N.Y. STATE)

(Billions of Dollars, Seas onally Adjusted) 1/
1970 - April
May
June
July

7.8
8.0
8.2
8.6

5.4
5.8
6.1
6.5

2.4
2.2
2.1
2.0

-.08
.20
.17
.37

Aug.
Sept.
Oct.
Nov.
Dec.

9.8
8.9
9.3
9.6
10.1

6.8
7.1
7.5
7.8
8.1

2.0
1.8
1.8
1.8
2.0

.21
.25
.30
.35
.51

1971 - Jan.
Feb.
Mar.
April

10.4
11.2
12.6
13.8
15.4

8.3
8.9
10.1
11.1
12.3

2.1
2.3
2.5
2.8
3.1

.25
.80
1.36
1.30
1.54

May

1

.21
.34
.26
.41

-.13
-.14
-.09
-.04

.29
.36
.37
.34 '
.28

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

.20
.60
1.16
1.01
1.22

Based on data from Federal Home Loan Bank Board and Savings Banks Associations of
New York State. Data for savings t>anks and S&L's include a minor amount of nonresidential commitments. All 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.




.05
.20
.20
.29
32

TABLE 12: Net Change in Mortgage Holdings 1

DATE -

TOTAL
INCLUDING
FNMA-GNMA

TOTAL

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

LIFE
INSURANCE
COMPANIES

FNMA-GNMA'

Not Seasonally Adlusted
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

1,797
2,508
4,375
4,909

1 9 7 0 - 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

529
477
378

1 9 7 1 - Mar.
Apr.
May

2,690
2,810
n.a.

2,690
2,920

79
20
n.a.

0
-110
-50

1967
1968
1969
1 9 7 0 &/

1 9 7 0 - Apr.
May June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1 9 7 1 - Jan.
Feb.
: Mar.
Apr.
May

1

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

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

1,765
2,144
2,182
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
200
131
232
24
97
154
38

507
435
468
508
408
364
320
229
100
-33
-87
-8
-79
7

Monthly data for commercial banks based on Federal Reserve estimates benchmarked
^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 8 4 per cent of the net increase estimated for all holders in 1 9 7 0 .




19

TABLE 13: Net Increases in Mortgage Debt Outstanding
Billions of dollars, SAAR ?
QUARTER

TOTAL

RESIDENTIAL 3

1- to 4 FAMILY

MULTIFAMILY

MULTI-AND
COMMERCIAL

COMMERCIAL

FARM

1966 - II
IV

18.6
15.1

10.9
9.1

8.3
7.0

2.6
2.1

5.5
4.1

8.2
6.0

2.2
1.8

1967 - I
II
III
IV

15.9
20.7
26.6
27.3

10.3
13.9
19.2
19.8

7.0
10.5
15.3
16.0

3.3
3.4
- 3.9
3.8

3.9
5.0
4.9
4.8

7.3
8.4
8.8
8.4

1.8
1.8
2.5
2.8

1968 - I
. II
III
IV

27.7
26.2
26.0
29.6

19.0
18.2
17.7
20.2

15.8
15.0
14.1
16.4

3.1
3.2
3.4
3.8

6.4
5.9
6.5
7.5

9.4
9.2
10.2
11.1

2.3
2.2
1.8
1.8

1969 - I
II
III
IV

31.3
28.9
26.5
25.1

25.0
21.5
19.3
18.3

18.6
16.8
14.6
13.0

4.4
4.7
4.7
5.3

6.2
5.2
5.3
5.4

10.4
10.1
10.0
10.7

2.2
2.2

1970 - I
II
III
IV

20.2
22.7
28.5
30.5

13.8
16.9
21.2
21.6

8.8
11.5
14.9
15.1

5.0
5.4
6.3
6.4

4.9
4.3
5.2
6.9

9.9
9.7
11.5
13.3

1.5
1.5
2.1
2.1

1971 - I P

32.9

22.6

15.6

7.0

8.3

15.3

2.0

-

H

1.4

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 interpolation#
and extrapolations, where required, estimated mainly by Federal Reserve.
2 May differ somewhat from related flow of futxds 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.




TABlyE 14: FNMA Weekly

WEEK
ENDED
Apr. 12
26

vx

Auction" Results

COMMITMENTS IN $ MILLIONS
ACCEPTED
901-YEARH
TOTAL
TOTAL
6OFFERED
MONTH & OVER
DAY

IMPLICIT YIELD 2 (per cent)
90DAY

6MONTH

1-YEAR 1
& 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

May

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

June

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
28

606.0
689.0

183 i 3

161.8i
183.3

58.2

21.1

1:8?

8.23

8.31

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.
1
2

For "proposed construction" of new homes only.
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
j are gross, before deduction of 38 basis points fee paid by investors
to servicers.




21
TABLE 15: Private Housing Starts and Permits
STARTS
DATE

UNADJUSTED
TYPE OF FINANCING
FHA VA | OTHER

SEASONALLY ADJUSTED
ANNUAL RATE.
TOTAL 1-FAMILY 2 o r MORE

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

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

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

1,725
1,754
1,959
1,912
1,959
,982

946
985
1,048
1,098

779
769
911
809
839
817

1,120
1,165

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2

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

110.6

32.2
27.3
33.4
44.6
40.7

4.6
4.7
6.9
8.4
8.3

72.8
68.4
127.6
148.1
147.9

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

102.2
167.9

201.1
196.9
192.3

Total starts are Census estimates including farm for both permit-issuing and
nou-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 1 3 , 0 0 0 , 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.




22
TABLE 16: Mortgage and Bond Yields
FHA
MORTGAGES

-

DATE
!

30-year

2

| CONVENTIONAL
MORTGAGES
3

1

NEW
SPREAD BE- |
TWEEN YIELDS j Aaa CORON CONV. & | PORATE
FHA MORT- !
BONDS
GAGES 5 L
4 J

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES (

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

7.24
7.28
7.46
7.57
8.01
7.90

n.a.

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

——
--

7.32
7.37
7.75
7.89

7.95
7.75
7.60
7.55
7.65
7.70

n.a.
.28
.18
-.10
-.19

-.14
-.20
-.26
-.01

Neither mortgage nor bond yields include allowance for servicing coats 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
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.
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.




2 3

•

TABLE 17: Conventional Mortgage Terms

DATE

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

EXISTHKG HOMES
CON- FEES &
LOAN/
LOAN/
TRACT CHARGES EFFEC- MATU- PRICE
PRICE LOAN
(PER
RATE
RATIO AMT.
TIVE
RITY RATIO
CENT) RATE (YEARS) (PER
(PER ($000) (PER
CENT)
CENT)
CENT)
2
3
4

LOAN
AMT.
($000)
4

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

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

1 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 exclude 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 rates--in Table 16.
I

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. „

I

Includes fees & charges amortized over a 10 year period in addition to the contract
interest rate.
Derived by FRB.





Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102