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DECONTROLLED AFTER SIX MOOTS
L.5.8 Cnnfirlintigf if fl )

2) L
CAPITAL
MARKET
DEVELOPMENTS




•

•

'

T A B L E 1: Y i e l d s , Volume and Reception

WEEK ENDING:

1971 - Nov.

Dec.

YIELDS
MOODY'S
SEASONED
NEW ISSUE 1
Aaa

CORPORATE BOND MARKET
VOLUME 2
PER CENT
GROSS
SOLD BY END
BONDS SCHEDULED
OFFERINGS
OF WEEK
WITHIN 28 DAYS

5
12
19
26

7.05
7.12
7.23
7.17

7.25
7.24
7.27
7.28

552
584
488
183

80
79
68
74

n.a.
n.a.

3
10
17

7.18
7.08
n. a.

7.28
7.27
n.a.

213
607
550e

85
64
n.a.

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

1971 - Nov.

5
12
19
26

YIELDS
BOND BUYER
MOODY'S
SEASONED 20
SEASONED
Aaa
BOND INDEX
4.75
499
4.90
5.19
4.90
5.25
5.15
5.36

Dec.

3
10
17

5.20
5.00
n. a.

WEEK ENDING:

5.44
5.23
n.a.

MUNICIPAL BOND MARKET
VOLUME2
PER CENT
BONDS SCHEDULED
GROSS
SOLD BY END
OF WEEK
OFFERINGS
WITHIN 28 DAYS
383
66
1,584
696
66
1,245
863
69
1,180
185
74
1,433
404
424
l,180e

86
90
n.a.

1,472
n.a.
n.a.

1 D e r i v e d by a d j u s t i n g to a A a a basis, new issues of p u b l i c l y - o f f e r e d corporate bonds
w i t h call p r o t e c t i o n , rated A , A a , or A a a byTloody's Investors Service (except serial
and c o n v e r t i b l e issues, offerings of natural gas p i p e l i n e and foreign c o m p a n i e s , and
bonds guaranteed by the Federal G o v e r n m e n t . )
2 M i l l i o n s of dollars unless o t h e r w i s e indicated.
Note:

See

footnotes to T a b l e 3




TABLE 2: Details on Inventories
DATE
OFFERED
12/9
12/9
12/8
12/8
12/8
12/6
11/29
11/29
11/15

OFFERED

AMOUNT
•(MIL. $
26.0
50.0
54.0
30.0
200.0
40.0
15.0
12.0
75.0

DATE
| RELEXSED

CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK
ORIGINAL RATING AND
1 ESTIMATED PROYIELD CALL PROTECTION 1 PORTION SOLD
ISSUER
COUPON
Pacific Ltg Svc
7
7.63
5 yrs
557=
Clark Eq Credit
7.85
7.85
10 yrs
95%
Burl. North. R.R.
3/8
7.38
A
85%
N.C.
Penna. Elec
7/8
7.70
. A
5 yrs
20%
New York Tel
3/8
7.28
Aaa
5 yrs
20%
Mich. Wise P/L
5/8
7.63
A
60%
N.C.
Iowa P & L.
5/8
7.58
Aa
5 yrs
80%
Orange & Rock Util
8.00
7.90
Baa
5 yrs
50%
So. Cent'1 Bell Tel
6 3/4
6.60
Aaa
5 yrs
98%

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

AMOUNT

NONE

MUNICIPALS

DATE
1971 - Nov:
TT
19
26

901
l,056r
993

3
10

792r
749

Dec.

INVENTORIES 1

IN SYNDICATE
"
T60
453
280
148
80

CORPORATES
IN SYNDICATE
214
288
145
59
231

N.C. - No call protection.
1
All figures in millions, of dollars. Blue List is daily average for week ended Friday, except for latest week
which is daily average of three days ended Wednesday. All other figures are as of Friday.




y

T A B L E 3: High Grade Bond Y i e l d s

DATE

NEW
CORPORATE
Aaa 1

MOODY'S SEASONED
\ CORPORATE
Aaa 2

U.S. GOVERNMENT
20-YEAR
CONSTANT
MATURITIES 3

BOND
BUYER'S
• SEASONED
MUNICIPALS4

1969 - High
LOW

8.85 (12/26)
, 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

9.30 (6/19)
7.68 (12/18)

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)
4.97 (10/21)

Nov.

5
12
19
26

7.05
7.12
7.23
7.17

7.25
' 7.24
7.27
7.28

5.79
5.84
5.83
5.93

4.99
5.19
5.25
5.36

Dec.

3
10

7.18
7.08

7.28
7.27

5.96
5.98

5.44
5.23

1
2
3

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.
:
W e e k l y a v e r a g e of daily

4

figures.

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.




/
T A B L E 4:

Long-term Corporate and State and Local Government
Security O f f e r i n g s and P l a c e m e n t s
(In m i l l i o n s of d o l l a r s )

GROSS PROCEEDS
CORPORATE V

PERIOD
1971

1970

1969

January
February
March

3,115
3,000
.6,075

2,636
1,802
3,539

April
May
June

4,007
3,271
4,375

July
August
September
October
November
December
1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

1st half
Three quarters
Year

1970

1969

2,075
2,045
2,098

2,706 *' 1,340
1,839
-1,214
2,156
1,555

1,262
987
538

3,170
3,909
3,389

2,748
2,076
2,530

1,920
2,140
2,035

1,647
996
1,085

1,801
1,110
737

4,147
2,532
3,768

2,768
2,274
2,518

2,478
1,427
2,427

1,964
1,892
2,061

1,348
1,359
1,758

1,097
808
559

3,010e

2,777
4,182
3,980

1,933
2,375
2,532

1,696

1,924
1,748
2,190

1,280
886
816

12,190
11,654
10,447

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

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

6,701
6,095
5,917

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

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

23,844
34,291

18,445
27,005
38,944

13,572
19,904
26,744

12,796
! 18,713
!

7,837
12,302
18,164

6,435
8,899
11,881

:

1
2
3

STATE AND LOCAL 2

i

- .

1971

i

!

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




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
OFFERED
STOCK FOREIGN | CONVERTIBLE

GROSS PROCEEDS BY
TYPE OF ISSUER
PUBLIC
UTILITY

COMMUNICATIONS

OTHER
ISSUERS'1

868
1,,346

2,66^
4,020)

1,606
:
896
2,,263

3,594
4,753
3,331

1970 - Ill
IV

8,560
11,938

5,937
7,827

914
1,421

~1,659
2,690

83
226

287
737

2, 314
3, 169

2,714
3,406

1971 - I
II
III

12,190
11,688
10,447

8,369
6,546
4,725

2,306
3,384
4,079

84
215
114

724
1,351
652

3, 794
3, 130
2,,202

3,197
2,910
2,651

1970 r Oct.
Nov.
Dec.

3,777
4,181
3,979

2,390
3,001
2,436

1,516
1,758
If"
304
283
834

1,083
898
709

56
11
159

388
184
165

1,,006
1,,107
1,,056

1,101
1,350
955

371
693
282

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

99
168
557

716
661
2,,417

676
1,069
1,452

391
683
532

1,332
587
1,675

Apr.
May
June

4,042
3,271
4,375

2,116
2,148
2,282

507
491
760

1,419
633
1,332

U6
47
52

384
255
712

1,,135
588
1.
,206

1,267
588
.1,055

273
405
218

1,367
1,489
1,897

July r/
Aug. r/
Sept,

4,147
2,532
3,768

1,331
1,428
1,966

619
. 416
606

2,196
687
1,196

72
34
— "8

199
160
293

582
474
1 ,146

732
849
1,070

1,622
359
282

1,210
850
1,271

Oct.
Nov. E/

3,010
3,550

1,950
1,950

500
500

560
1,100

210
400

500
850

800
1,260

410
255

1,300
1,185

and finance, and commercial and other.
Source: Securities and Exchange Commission,
able.




n. a.
n.a.

*
-

Quarterly supplements are avail-

•

/

T A B L E 6:

Large Long-term P u b l i c Security I s s u e s for New Capital
(Other than U.S. T r e a s u r y ) 1

•

ISSUER

TYPE 2

AMOUNT
(MILLIONS
OF
DOLLARS)

,

MATURITY

Nov. 29, thru Dec. 10, 1971
COUPON
OFFER- MOODY'S
RATE OR
RATING
ING
NET INTERYIELD
EST COST

Corporate
Minneapolis Gas Co
Iowa Pwr & Light Co
Houston Lighting & Pwr Co
Gen'l Tel of Calif
Delmarva Pwr & Light Co
Hartford Elec Light Co
Allegheny Pwr System Inc
Cleveland Elec Illuminating Co
Equity Funding Corp of America
Michigan Wisconsin Pipeline Co
Duke Pwr Co
Duke Pwr Co
Dominion Bankshares
Burlington Northern Inc
Burlington Northern Inc
Penna Elec Co
New York Tel Co
Pacific Lighting Service Co
Puerto Rico Tel




S.F. debs
12.0
1st mtg
15.0
1st mtg
50.0
1st mtg
50.0
1st mtg
35.0
1st mtg
30.0
Com stk
43.9
Pref
50.0
Delis
38.5
Bonds
40.0
Notes
60.0
1st ref mtg 40.0
Debs
15,0
16.0
Eq tr
S.F. certf
34.0
30.0
1st mtg
Ref mtg
200.0
S.F. debs
26.0
Debs
35.0

1996
2001
2001
2001
2001
2001

7.88
7.63
7.50
7.63
7.63
7.63

7.88
7.58
7.37
7.63
7.55
7.55

A
Aa
Aaa
A
Aa
Aa

--

—

—

—

—

—

—

—

1991
1991
1978
2001
1996
1972-76
1986
2001
2011
1991
1996

5.50
7.63
6.85
7.38
7.75
7.38
7.88
7.38
7.88
8.10

x

—- .
5.50
7.63
A
6.85
A
7.45
Aa
7.75
N.R.
5.00-6 .50 A
Aa
7.43
7.70
A
7.28
Aaa
7.63
A
8.10
Ba

1-

\

J
T A B L E 6:

Large Long-term Public Security I s s u e s for New Capital (continued)
(Other than U.S. Treasury) 1
-

Dec. 10. 1971
AMOUNT
(MILLIONS

1
ISSUER

TYPE

2

'

MATURITY

OF
DOLLARS)

COUPON
|
R A T E OR
iMTKR...NET INTERi;.<;
EST C O S T
| Y11.1,1)

MOODY 1S
RATING

State and Local
Connecticut, State of
Oneida Co., N.Y.
Oneida Co., N.Y.
University of Texas
Suffolk Co., N.Y.
Penna, State of
Penna, State of
Chicago, 111.
Milwaukee, Wise.
Greater Anchorage Area Borough,
Alaska
New Jersey
Hennepin Co., Minn
Phoenix, Ariz.
Albany Co., N.Y.
Nassau Co., N.Y.
Ann Arbor Pub Sch., Mich
West Virginia

G.O.
G.O.
G.O. 1
Rev. \
G.O. v
G.O.
G.O.
Rev.
G.O.

12.5
4.1
12.0
50.0
17.0
50.0
75.0
25.0
17.0

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

10.0
75.0
10.7
10.0
70.0
48.9
12.9
40.0

J

1972-1981
1972-1996
1972-2001
1972-2002
1972-1995
1974-2001
1974-2001
1976-1986
1972-1991
1974-1992
1976-1995
1974-1990
1974-1979
1972-2001
1972-2000
1992-1997
1972-1996

——
——
--

5.47
5.22
5.31
5.31
--

4.63
6.03
4.80
4.28
3.15
5.37
——

4.79
4.55

2.70-4. 25
2.75-5. 20
2.80-5. 25
2.75-5.70
2.90-5. 50
3.40-5.65
3.40-5. 76
3.90-4.00
2.85-5. 70
4.00-6,.20
3.50-5,.15
3.25-5,.00
3.15-3,.90
2.70-5,.75
2.75-5 .25
3.20-5 .35
2.65

Aaa
A-l
A
Aa
A-l
A-l
Aaa
Baa
Aaa
Aa
Aa
A
A
A-l
——

Rights offering.
I n c l u d e s c o r p o r a t e and other security o f f e r i n g s of $15 m i l l i o n and over;
S t a t e and local security o f f e r i n g s of $10 m i l l i o n and over.
In case of State and local government s e c u r i t i e s , G.O. denotes genera I oh 1 i gaii on ;
'<ev.-Ut., revenue o b l i g a t i o n s secured only by income from public utilitie
Rev.-Q.-lit., revenue bonds secured only by income from quas i -ut i 1 i t i es ; v.-S.T.
R
revenue bonds secured by revenue from specific taxes only; Rev.-Rent
venue
b o n d s secured solely by lease p a y m e n t s .
I n c l u d e s foreign government and I n t e r n a t i o n a l B a n k for R e c o n s t r u c t i o n and
Development issues and n o n - q u a r a n t e e d issues by Federal A g e n c i e s .




TABLE 7:

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

(continue")

ISSUER

TYPE

o f

AMOUNT
(MILLIONS
OF
DOLLARS)

D e c e m b e r

_
10,

1 9 7 1

A P P R O X I M A T E DATE
OF O F F E R I N G

Corporate
Alison Mtge & Inv Trust
First TTnion Real Estate Equity
& Mtge Inv.
Gen'l Telephone Co of Indiana
Heitman Mtge Investors
Investors Div Sves Inc
Philadelphia Elec Co
Philadelphia Elec Co
Connecticut Light & Pwr Co
Alabama Pwr Co
Alabama Power Co
Coit International Inc.
First National State Bancorp
Long Island Lighting Co
Hotel Investors
Long Island Lighting Co
U.S. Home Corp
; Atlantic Bancorp
I Mony Mtge Inv
Bell Tele Co of Pa
Texas Elect SVC
Oklahoma G & E
Northern Natural Gas Co
Pub SVC Co of Ind.
Kentucky Power Co
Carolina Power & Lt. Co.
Lone Star Gas Co
Louisiana Power & Lt. Co.
Tampa Elect
2 & P Tele Co of Md
3en'l Tele Co of 111.




Debs
Debs
Bonds
Debs
Debs
1st mtg
1st mtg
Bonds
1st mtg
Fref stk
Debs
Notes
1st mtg
Debs
1st mtg
Debs
Debs
Debs
Bonds
Bonds
Bonds
Debs
Bonds
Bonds
Stk
Debs
Bonds
Bonds
Bonds
Bonds

25.0

Dec.

13

20.0
18.0

Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.

13
13
13
13
13
13
14
15
15
15
15
16
16
16
16

30.0
35.0

80.0
80.0
30.0
25.5
38.0
25.0
25.0
50.0 ^

20.0
40.0-50.0

20.0
20.0
50.0
125.0
30.0
30.0
50.0
50.0
45.0
30.0
25.0
40.0

Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.

5
10
11
11
12
l? y
18 .
18
19
20

100.0
20.0

Jan.
Jan.

25
27

60.0

11
T A B L E 7:

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

ISSUER

-

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

As of D e c e m b e r 10, 1971

APPROXIMATE DATE
OF OFFERING

State and Local
Rhode Island
N.Y. City
' .
,
Warwick, R.I.
Chicago Public Bldg Com
Okla Capitol Imp Auth
Oregon, State of
Oklahoma Indus Auth
Orleans Parish Sch Bd
HAA
Ohio
Dallas, Texas
West Virginia Hsg. Dev. Fund
Richmond,~Va
Vermont Muni Bond Bank
Industry Urban-Dev Agy., Cal
NYC. Housing Devel Corp
Ohio, State/of
San Francisco, Cal
L'Anse Creuse Public S/D, Mich
St. Paul, Minn
Los Angeles DWAP
Philadelphia Sch Dist, Pa

G.O.
G.O.
G.O.
Rev.
G.O.
G.O.
G.O.
G.O.
Bonds
Rev
G.O. & Rev.
G.O.
G.O.
G.O.
G.O.
Rev.
G.O.
G.O.
G.O.
G.O.
Rev.
G.O.

26 .8
376 .8
11 .3
55 .0
17 .5
68 .0
29 .0
12 .0
253,.0
40..0
11..0
12..2
— 35,,0
20.0
10. 0
100. 0
60.0
37.0
22. 6
11.0
15.0
40. 5

Dec.
Dec.
Dec.
Dec.
Dec.
^ Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec'.
Dec.
Dec.
Dec.
Jan.
Jan.
Jan.
Jan.
Jan.
March

13
14
14
14
14
14
14
14
15
15
15
15
15
16
16
7
10
17
18
26
7

Other
Farmers Home Administration

*

Notes

350. 0

Dec.

Included in table for first time.^.
o-iivo-uuca v u i y u i a i c di.u u m e r issues or 31D m i n i o n
G o v e r n m e n t issues of $10 m i l l i o n and over.

and over; State and

loc

I n c l u d e s foreign g o v e r n m e n t and I n t e r n a t i o n a l Bank for R e c o n s t r u c t i o n and
D e v e l o p m e n t issues and n o n - g u a r a n t e e d issues of Federal A g e n c i e s .




Table 8

12

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

TRADING VOLUME 2 *

DATE
NYSE INDEX 3 -

D J . INDUSTRIALS

AMEX *

NYSE

AMEX

- High
Low

8.0(1/31)
50.32 (5/14) 968.85 (5/14) 32.91 (1/13) 16.5 (3/29)
49.31 (7/29) 769.93 (12/17) 25.02 (7/29) 8.6 (8/29) " 3.6 (11/21)

- High
Low

52.36 (1/5) 842/00 (12/29) 27.02 (1/8) 18.5 (12/4)
37.69 (5/26) 631.16 (5/26) 19.36 (5/27) 7.8 (8/14)

7.1 (1/2)
1.8(8/14)

- High
Low

57.76 (4/28) 950.82 (4/28) 26.68 (4/28) 22.1 (2/12)
48.73 (1/4) 797.97 (11/23) 22.72 (1/4) 11.0 (8/13)

6.7 (2/12)
2.7 (8/13)

Nov.

5
12
19
26

52.16
50.85
50.47
50.57

840.39
812.94
810.67
816.59

24.54
24.10
23.78
23.63

13.1
12.4
12.2
12.7

3.3
2.8
3.0
3.4

Dec.

3
10

53.51
53.99

859.59
856.75

24.60
24.99

18.6
16.3

4.5
4.2

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/
Through:
. Week
From
Dav
January 3, 1969
July 7, .1969
January 2, 1970

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

3.

12/31/65 - 50

4.

Average dollar value of shares listed.




" 4
4-1/2
5

5

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

13

T A B L E 9: Security Credit

END OF PERIOE

CREDIT EXTENDED TO'
MARGIN CUSTOMERS BY:
BROKERS 1 | i;ANKS 2 f~ TOTAL

1 CUSTOMERS1
NET DEBIT
BALANCES

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

Outstanding:

I.
1
I
<
1
,

'

1970 - Oct.
Nov.
Dec.

4,010
4,010
4,030

2,270
2,320
2,303

6,280
6,330
6,360

(4)
(4)
(4)

2,163
' 2,197
2,286

1971 - Jan.
Feb.
Mar.
Apr.
May
^June
July
Aug.
Sept.
Oct.

4,000
4,090
4,300
4,530
4,620
4,720
4,790
4,850
4,930
4,950

2,300
2,330
2,360
2,340
2,340
2,390
2,420
2,430
2,430
2,410

6,300
6,420
6,660
6,870
6,960
7,110
7,210
7,280
7,360
7,360

(4)
(4)

2,452
2,743
2,798
2,660
2,550
2,440
2,210
2,200
2,100
2,150

90

-60
50
10

30
50
30

-30
30
30
-20

-60 "
120
240
210
90
150
100
70
80

(4)

(4)
(4)
(4)

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

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

(4)
(4)

Change; in
Outstanding
1970 - Oct.
Nov.
Dec.
1971 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.

—

20
-30
90
210
230
90
100
70
60
80
20

''

—

50
30
10
—

-20

•

__

.
-——
-•—
——
--—
--

-73
34
89
291
291
55
-138
-110
110
230
-10
100
60

. ——

__
__
--——

—
——
—

1

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.

2

" B a n k loans to o t h e r s than b r o k e r s and d e a l e r s for p u r c h a s i n g or c a r r y i n g secur i t i e s o t h e r than U . S . g o v e r n m e n t s . "
T h e d i f f e r e n c e b e t w e e n c u s t o m e r s ' net debit b a l a n c e s and c u s t o m e r s ' n e t free credit b a l a n c e s , this figure r e p r e s e n t s the net credit extended by b r o k e r s and
d e a l e r s to the n o n f i n a n c i a l p u b l i c .
„
NOTE:
W i t h the e x c e p t i o n of b a n k loan d a t a , figures are supplied by the N e w Y o r k
S t o c k E x c h a n g e and are end of m o n t h d a t a .
B a n k loans are for w e e k l y r e p o r t i n g
large c o m m e r c i a l b a n k s .
B r o k e r data i n c l u d e s loans for r e g u l a t e d securities; bank
data i n c l u d e s loans for the p u r p o s e of p u r c h a s i n g or c a r r y i n g any s e c u r i t y , w h e t h e r

3

4

Series3 discontinued.

5 forChanges
in series.
Digitized
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62%' 1
188' 1
091' 2
582' 1
865' 2
251' 2
966' 1

, __
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——

6''6
£''8
6 '6
9''9
8'"8
6''EI
6 •21

E%9
£%5
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52%
595
668
566

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962
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0%E'l
26%'i
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628''1

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S9UEipauua)U| AjB)isodaQ >juequoN je S/IAOIJ S6U|AES 01 3 1 8 V 1
71

TABLE 11: Mortgage Commitments at S e l e c t e d Thrift Institutions
OUTSTANDING COMMITMENTS
ALL
MUTUAL
SAVINGS &
SAVINGS
BANKS
LOAN
(N.Y. S T A T E )
ASSOCIATIONS

DATE

1

/

NET CHANGE
ALL
SAVINGS &
LOAN

ASSOCIATIONS

MUTUAL
SAVINGS
BANKS
(N.Y. S T A T E )

i/
f
(Billions of Dollars, Se isonally Adjusted)—
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.

8.9
9.3
9.6

7.1
7.5
7.8

10.1

8.1

10.4

8.3
8.9

11.2
12.6
13.8
15.3

16.1
16.3
16.4
16.5

10.1
11.1
12.2
13.0
13.2
13.3
13.3

1.8
1.8
1.8

2.0
2.1
2.3
2.5

2.8
3.1
3.1
3.1
3.1
3.2

.25
.30
.35
.51

.36
.37
.34

.11

.28

.23

.25

.20
.60
1.16
1.01
1,21

.80
1.36
1.30
1.56
.77
.24
.07

.12

'.2% E/
.10
-.01

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 inculde 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.




.07

.01
.05

.20
.20
.29
.34
.05

.13

16

TABLE 12: Net Change in Mortgage Holdings

DATE

TOTAL
INCLUDING
FNMA-GNMA

1

F I N A N C I A L INSTITUTIONS
LIFE
MUTUAL
1SAVINGS &|
SAVINGS
TOTAL 1 COMMERCIAL
LOAN
1 INSURANCE
BANKS
. 1 BANKS
| ASSOC.
1C O M P A N I E S
1

F:;MA-GNMA

Not S e a s o n a l l y A d lusted
1967
1968
1969
1970 £ /

20,016
23,781
24,189
21,822

18
21
19
16

,219
,273
,814
,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
77
117
188

1970

- Aug.
Sept.
Oct.

2,072
2,318
2,207

1 ,673
1 ,956
I,, 8 4 0

300
500
300

182
216
164

1,114
1,123
1,188

1971

- Aug.
Sept.
Oct.

M 5 6 r
4,094
n.a.

3 ., 9 3 0
3., 5 8 6
n.a.

1,000
1,100
900

415
272
414

2,391
2,122
1,992

^

124
92
n.a.

;
|

1,797
2,508
4,375
4,909
399
362
367

!
1

526r
508
456

Seasonally Adjusted
1970

1971

1

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

1,919
2,196
2,128
2,049
2,604
1,860
2,097
2,988
2,939
3,280
4,177
4,259
4 304r
3,995
n.a.

1,, 5 1 V
1,, 8 3 2
1,, 8 0 8
1,, 8 2 0
2,,504
1,, 8 9 3
2, 184
2, 996
2, 018
3, 273
3, 972
3, 898
3 , 770
3,486
n.a.

268
329
295
224
312
383
445
688
653
840
1,197
969
972
922
896

175
245
138
176
250
175
217
380
283
313
413
373
410
302
389

983
1,1041,175
1,289
1,710
1,311
1,425.
1,774
2,044
2,095
2,339
2,484
2,258
2,130
1,977

85
155
200
131
232
24
97
154
38
25
23
72
130
132
n.a.

408
364
320
, 229
100
-33
• -87—
-8
-79
7
205
3 6 I

53 4
509
407

rr

M o n t h l y data for c o m m e r c i a l banks based on Federal R e s e r v e estimates benchmarked
to C a l l Report data on real estate loans o u t s t a n d i n g as a v a i l a b l e .
O t h e r data
derived from m o r t g a g e debt o u t s t a n d i n g as reported separately by N a t i o n a l A s s n .
o f ' M u t u a l Savings B a n k s , Federal H o m e L o a n Bank B o a r d , Institute o f Life Insurance
and, through A u g u s t 1968, the Federal N a t i o n a l M o r t g a g e A s s o c i a t i o n , and therea f t e r by FNMA and the G o v e r n m e n t N a t i o n a l M o r t g a g e A s s o c i a t i o n .
Data for m u t u a l
savings banks and for L i f e I n s u r a n c e c o m p a n i e s m a y differ somewhat from those
derived from regular quarterly series because of m i n o r c o n c e p t u a l differences fpr
which a d j u s t m e n t s are not made in the m o n t h l y series.
A l t o g e t h e r , these grouos
accounted for 8 4 per cent of the net increase estimated for all holders in 1 9 7 0 .




17
- TABLE 13:

Net Increases in Mortgage Debt Outstanding

1

Billions of dollars, SAAR QUARTER

1

I

(

(
(
]

TOTAL_

RESIDENTIAL3

MULTI-AND
COMMERCIAL

1- to 4FAMILY

MULTIFAMILY
2.6
2.1

5.5
4.1

8.1
6.2

2.2
1.8

COMMERCIAL

FARM

1966 - II
IV

18.6
15.1

10.9
9.1

8.3
7.0

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

7.2
8.3
8.8
8.6

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

9.6
9.0
10.1
11.3

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
16.9
14.6
13.0

4.4
4.7
4.7
5.3

6.2
5.2
5.3
5.4

10.6
9.9
1071
10.7

2.2
2.2
1.8
1.4

1970 - I
II
III
IV

20.2
22.8
29.5
31.6

13.8
16.9
22.1
22.5

8.8
11.5
15.8
16.1

5.0
5.4
6.3
6.4

4.9
4.3
5.2
6.9

9.9
9.7
11.5
13.4 ...

1.5
1.5
2.1
2.1

1971 - Ip
Hp

36.3
47.6

25.9
36.4

17.7
26.2

8.2
10.2

8.1
8.9

16.3
19.1

2.2
2.3

1

2

D e r i v e d from d a t a on m o r t g a g e d e b t o u t s t a n d i n g from F e d e r a l D e p o s i t I n s u r a n c e
Corporation, Federal Home L o a n B a n k Board, Institute of Life
Insurance, National A s s o c i a t i o n of M u t u a l S a v i n g s B a n k s , D e p a r t m e n t s of C o m m e r c e and A g r i culture, Federal National Mortgage Association, Federal Housing Administration,
V e t e r a n s A d m i n i s t r a t i o n a n d C o m p t r o l l e r of the C u r r e n c y .
S e p a r a t i o n of n o n farm m o r t g a g e d e b t by type of p r o p e r t y , w h e r e not a v a i l a b l e , and i n t e r p o l a t i o n s
and e x t r a p o l a t i o n s , w h e r e r e q u i r e d , e s t i m a t e d m a i n l y b y F e d e r a l R e s e r v e .
M a y d i f f e r s o m e w h a t from related flow of funds series m a i n l y b e c a u s e o f m o r e

3

a g g r e g a t i v e . t y p e of s e a s o n a l a d j u s t m e n t .
R e s i d e n t i a l m o r t g a g e d e b t i n c l u d e s n o n f a r m o n l y and

1

and m u l t i f a m i l y m o r t g a g e d e b t . c o m b i n e d .




is sum of 1 - t o 4 - f a m i l y

T A B L E 14:

FNMA Weekly " A u c t i o n " R e s u l t s
IMPLICIT YIELD2(per cent)

C O M M I T M E N T S IN $ M I L L I O N S
ACCEPTED
WEEK
ENDED

TOTAL
OFFERED

TOTAL
3

1 /
m o .If

6MONTH

July

26

686.2

183.4

183.4

—

Aug.

25

634.6

153.5

153.5

—

Sept.

7
20

445.2
437.5

188.6
193.0

188.6
193.0

—

4
18

365.1
219.8

194.8
103.6

194.8
103.6

—

1
15

126.0
145.3

56.4
102.0

56.4
102.0

Oct.

Nov.

—

1-YEARN
& OVER

3-4
months
1/

—

8.07

—

7.97

——

7.88
7.86

6MONTH

1-YEAR
& OVER

—

1

—

—

—

,1

7.85
7.83

--

7.77
7.70

--

• __

; T

Note:
Under the FNMA auction system, approved sellers of G o v e r n m e n t u n d e r w r i t t e n m o r t g a g e s bid for FNMA forward purchase c o m m i t m e n t s ,

1

For " p r o p o s e d c o n s t r u c t i o n " of new h o m e s only.

2

A v e r a g e secondary m a r k e t yield after a l l o w a n c e for c o m m i t m e n t fee and
required p u r c h a s e and h o l d i n g of FNMA stock, assuming prepayment of
15 years for 30-year G o v e r n m e n t - u n d e r w r i t t e n m o r t g a g e s .
Y i e l d s shown
are gross, b e f o r e d e d u c t i o n of 3 8 b a s i s points fee paid by investors
to s e r v i c e r s .
I

3

S h o r t - t e r m c o m m i t m e n t s c o n v e r t e d from a 3 to a 4 m o n t h b a s i s b e g i n n i n g
1
O c t o b e r 18, 1971.




19
T A B L E 15:

STARTS
SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE

TOTAL

UNADJUSTED
TYP E OF FINANCING
FHA VA
OTHER

) - Oct.
Nov.
Dec.

1,583
1,693
2,054

890
934
1,240

693
759
814

140.9
126.9
121.4

40.4
33.7
63.2

L - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug. r/
Sept. r/
Oct. £/

1,725
1,754
1,959
1,912
1,975
2,000
2,229
2,258
1,948
2,050

• 946
985
1,048
1,098
1,124
1,177
1,187
1,212
1,175
1,152

779
769
911
814
851
823
1,042
1,046
773
898

110.6
102.2
167.9
201.1
198.5
193.8
194.3
204.5
169.5
182.0

32.2 4.6
27.a 4.7
33.4 6.9
44.6 8.5
40.7 -8.4
46.1 9.3
42.9 9.2
45.8 9.4
48.3 8.7
8.1

DATE

1

2

'

Private Housing Starts and Permits

;"

5.8i
5.5>
5.7

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2

94.7
87.2
52.5

1,523
1,487
1,768

72.8
68.4
127.6
148.0
149.4
137.8
142.2
149.3
112.5

1,635
1,563
1,627
1,638
1,927
1,849
2,052
2,006
1,900
2,215

Total starts are Census estimates including farm for both permit-issuing and
noii-issuing areas. A dwelling unit is started when excavation begins; all ugits
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 before January 1963 are Census estimates for about 10,000 areas
identified as having a local building permit system in 1959. Estimates beginning
January 1963 are for approximately 12,000 and beginning January 1967 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 Y i e l d s

MORTGAGES
DATE
30-year

1969 - H i g h
Low

8.62

1970 - H i g h
Low

CONVENTIONAL
MORTGAGES
3

|
NEW
S P R E A D BEAaa CORTWEEN YIELDS
ON C O N V . %
PORATE .
FHA M O R T BONDS
GAGES 5
I

S P R E A D BETWEEN
YIELDS ON NEW
C O R P O R A T E BONDS
AND
FHA M O R T G A G E S 6

1.08

8.35
7.55

-.13
-.40

9.29
8.40

8.60

-.10

8.30

-.74

9.11
7.80

1971 - H i g h
Low

7.97
7.32

7.95
7.55

.28

8.01

-.19

7.24

1971 - M a y
June

75
89

7.65
7.70

-.10
-.19

8.01

97
92
-7.84

7.80
7.85
7.85

-.17
-.07

.01

7.96
7.65
7.44

.27
.40

7.75

7.80

.05

7.29

.46

July
Aug.
Sept.
Oct.

7.99

8.75
6.91

7.90

-.13
.99

.01
.40
-.36
-.26
-.01

.01

N e i t h e r m o r t g a g e nor bond yields i n c l u d e a l l o w a n c e for servicing costs which are
m u c h h i g h e r for m o r t g a g e s than for b o n d s .
G e n e r a l l y , b o n d s p a y interest semiannually; m o r t g a g e s , m o n t h l y .
M o r t g a g e y i e l d s , if computed as equivalent to '
a s e mi-annual interest i n v e s t m e n t , would be slightly h i g h e r than given in the
table.
•
Based on F H A - f i e l d - o f f i c e opinions about a v e r a g e bid prices in the private
secondary m a r k e t for n e w - h o m e m o r t g a g e s for i m m e d i a t e d e l i v e r y .
Data shown
are for 3 0 - y e a r m o r t g a g e s w i t h m i n i m u m d o w n p a y m e n t s , and w e i g h t e d by p r o b a b l e
v o l u m e of t r a n s a c t i o n s . Y i e l d s c o m p u t e d by F H A , a s s u m i n g p r e p a y m e n t p e r i o d
of 15 y e a r s for 3 0 - y e a r m o r t g a g e s .
Based o n F H A - f i e l d - o f f i c e o p i n i o n o n t y p i c a l interest r a t e s (rounded) o n
c o n v e n t i o n a l first m o r t g a g e s p r e v a i l i n g in the m a r k e t areas o f insuring
office cities.
,
S e e n o t e for Table 1.
Y i e l d spread e q u a l s c o n v e n t i o n a l m o r t g a g e rate less F H A s e c o n d a r y m a r k e t y i e l d .
Y i e l d spread e q u a l s FHA s e c o n d a r y m a r k e t yield less n e w A a a c o r p o r a t e b o n d
yield.




TABLE 17: Conventional Mortgage Terms

DATE

N E W HOMES
CONFEES &
T R A C T CHARGES EFFEC- MATURITY
RATE
(PER
(YEARS)
TIVE
(PER
CENT) RATE
CENT)
2
3

1970
Oct.
Nov.
Dec.

1

LOAN/
PRICE LOAN
RATIO A M T .
(PER ($000)
CENT)
4

EXISTING HOMES
CONFEES &
LOAN/
T R A C T CHARGES EFFEC- M A T U - PRICE
(PER
RATE
TIVE
RITY
RATIO
(PER
CENT) RATE
(YEARS) (PER
CENT)
CENT)
2
3

LOAN
AMT.
($000)
4

-

8.33
8.26
8.20

1.05
0.99
1.07

8.51
8.43
8.38

25.1
25.3
25.8

72.4
72.1
73.8

24.8
25.2
25.8

8.20
8.18
8.12

0.88
0.85
0.85

8.35
8.32
9.26

22.8
22.7
23.3

71.5
71.5
71.9

20.5
21.1
21.7

8.03
7.74
7.52
7.37
7.36
7.38
7.51
7.60
7^ 6 7
7.67

0.92
1.00
0.83
0.73
0.71
0.74
0.90
0.84
0.97
0.96

8.18
7?91
7.66
7.49
7.47
7.50
7.66
7.74
7.83
7.83

25.8
26.2
25.9
26.3
26.1
26.3
26.3
26.2
25.8
26.5

73.3
73.9
73.7
73.6
74.0
73.7
74.5
73.9
75.3
75.6

26.4
26.2
26.0
26.2
26.7
27.2
27.1
26.5
25.9
26.3

7.94
.7.67
7.47
7.34
7.33
7.38
7.50
7.58
7.63
7.62

0.82
0.79
0.77
0.75
0.71
0.74
0.75
0.76
0.78
0.78

8.08
7.80
7.60
7.47
7.45
7.50
7.63
7.71
7.76
7.75

23.5
24.0
24.1
24.2
24.0
24.3
24.2
24.5
24.2
24.2

72.5
73.1
73.5
73.6
73.2
73.9
74.5
74.2
74.5
74.6

22.0
22.5
23.0
23.1
23.3
28.3
23.2 ;
23.5
22.5_
23.0

1971
;

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

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 mortgagfe 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.
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.
Derived by FRB.