Full text of H.16 Capital Market Developments : December 15, 1969

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DECOTOOLW

L.5.8

A F T E R S I X WDT3THS

Confidential (F.R.)

December

I
1.

196 9 „

1
-

"

1
1

M d u U u u t -

CAPltAL
MARKET
DEVELOPMENTS

C a p i t a l Markets Section, D i v i s i o n of Research and S t a t i s t i c s ,
Board of Governors of the Federal Reserve System, Washington, D. C.




15.

INDEX
3-5

Developments in the Corporate and Municipal Bond Markets

6-7

Capital Market Yields

8-13

Capital Market Volume

14-17 Stock Market
18-33

Mortgage Market

SYMBOLS:
e Estimate
p Preliminary
r
n.a.

Revised
Not available




TABLE 1: Yields, Volume and Reception

WEEK ENDING:

1969 - Nov.

Dec.

7
14
21
28

8.13
8.27
8.44
8.67

7.26
7.29
7.38
7.48

5
12
19£y

8.85
8.70
n.a.

r/7.60
7.64
n.a.

WEEK ENDING:

1969 - Nov.

Dec.

YIELDS
MOODY'S
SEASONED '
NEW ISSUE 1

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

CORPORATE BOND MARKET
VOLUME;2
GROSS
OFFERINGS

PER CENT
SOLD BY END
OF WEEK

261
365
241
185

67
81
79
91

517
424
400e

99
92
n.a.

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

7
14
21
28

5. 75
5.78
5.95
6.05

6.11
6.17
6.36
6.58

246
83
314
21

5
12
19j>/

6.34
6.48
n.a.

6.72
6.88
n.a.

249
.
232
300e

BONDS SCHEDULED
WITHIN 28 DAYS 991
1,071
903
733
586
643
n.a.

BONDS SCHEDULED
WITHIN 28 DAYS

48
67
59
86

903
954
913
683

97
77
n.a.

437
442
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 bv the Federal Government.-)
2 Millions of-dollars unless otherwise indicated.
Note:

See footnotes to Table 3




TABLE 2: Details on Inventories
CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK
'
jORIGINAL! RATING AND
ISSUER
; COUPON
YIELD CALL PROTECTION

"AMOUNT '
(MIL.\$)

DATE
OFFERED
12/11
12/10
12/10
12/9
11/24

25.0
20.0
3o;o
80.0
13.0

[.
DATE
i OFFERED | RELEXSED

Arkansas Pwr. & Ltg.
North Illinois Gas
Walter Heller
Ohio Power
General Tel. of New York

9..25
9.,00
9.,50
9.,00
9.,50

9,,08
8,,80
9,,50
8,,82
9.,45

A
Aa
N.R.
Aa
Baa

5
5
10
5
5

yrs.
yrs.
yrs.
yrs.
yrs.

ESTIMATED PROPORTION SOLD
5p%
50%
95%
90%
90%

CORPORATE BONDS RELEASED FROM. SYNDICATE DURING LATEST WEEK
ORIGINAL INCREASE RATING AND ESTIMATED PRO'ISSUER
AMOUNT
COUPON
IN YIELD CALL PROT. PORTION- RELEASED
YIELD

NONE

INVENTORIES 1
MUNICIPALS
BLUE LIST
• |
. INSYNDICATE

DATE
1969 - Nov.

1

Dec.

14
21
28

560
609
583

5
12£/

515
481

N.C. - No call protection.
1
figures in millions of dollars.
Digitized
forAll
FRASER
which is daily average of three days


,

164
223
142

!
j

j

83
"

|
i

-

CORPORATES
IN SYNDICATE
88
68
59
16
33

l

Blue List is daily average for week ended Friday, except for latest week
ended Wednesday. All other figures are as of Friday.

BONDS IN SYNDICATE
Millions of dollars
C O R P O R A T E B O N D S IN S Y N D I C A T E

200

L_

iiJ.

M U N I C I P A L B O N D S IN

i l.. I

lid

SYNDICATE

300

i

SEPT.

DEC.

67




MAR

JUN

1968

SEPT.

DEC.

MAR

JUN.

llilil
SEPT

200

•1 1 0 0

0
DEC

V

, .

vX
TABLE 3: High Grade Bond Yields'

NEVJ
CORPORATE
Aaa 1

DATE

MOODY'S SEASONED
CORPORATE
Aaa 2

U.S. GOVERNMENT 1"
20-YEAR
CONSTANT
MATURITIES 3
|

BOND
BUYER'S
SEASONED
MUNICIPALS 4

1967 - High
Low

6.55(12/8)
5.11(2/10)

6.24(2/29)
5.00(2/10)

5.73(11/7)
4.48(1/20)

4.45(12/7)
3.40(2/2)

1968 - High
Low

7.02(12/13)
6.13(8/30)

6.55(1/27)
5.95(9/13)

5.90(1/20)
5.18(8/9)

4.85(1/26)
4.07(8/8)

1969 - High
Low

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

7.59(12/5)
6.55(1/3)

6.84(11/12)
5.96(1/24)

6.72(12/5)
4.82(1/28)

14
21
28

8.27
8.44
8.67

7.29
7.38
7.50

6.71
6.84
6.80

6.17
6.36
6.58

/12R/

8.85
8.70

7.59
7.64 V

6.82
6.85

. 6.72
6.88

1969 - Nov.

Dec.

1
2
3
4

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.
Weekly average of daily figures.
Thursday figures. The average rating of the 20 bonds used in this index
falls midway between the four top groups as classified by M p o u v ' s Investors Service.

Note--Highs and lows are for individual,series•and may be on different dates
for different series.




„

HIGH GRADE BOND YIELDS

F H

NEW CORPORATE Aaa

MOODY'S
X
CORPORATE Aaa

U S. GOVT.20 YR
CONSTANT MATURITIES

BOND BUYER MUNICIPAL

1965




1966

1967

1968

1969

8

CORPORATE

PERIOD
1969p

.1968

January
February
March

2,075
2,045
2,098

1,771
1,608
1,799

April
May .
June

2,748
2,076
2,530

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

,
1

Quarter
Quarter
Quarter
Quarter

1st half
Three quarters
Year

•f

"^

1967

1969 p

1968

1 ,684
1 ,418
2,362

1,262
987
538

1,178
1,158
1,404

1,492
1,236
1,450

1,428
1,866
2,411

2 ,015
1 ,518
2 ,674

1,801
1,109
734

1,318
1,143
1,395

1,130
1,254
1,497

2,450
1,489
2,480e

2,143
1,432
1,557

2 ,589
2 ,481
1 ,763

1,092
804
534

1,469
1,699
1,444

950
860
.1,340

2, H O e K
2,560e
2,500e

2,129
1,767
2,054

2 ,409
1 ,500
2, ,385

1,264
870e
600e

2,230
1,021
1,115

975
1,401
1,182

6,218
7,354
6,419e
7,170e

5.178
5,704
5,133
5,950

5,,464
6,,208
6,,832
6, 294

2,787
3,644
2,430e
2,734 e

3,840
3,856
4,612
4,366

4,177
3,881
3,150
3,557

13,522
19.991e
27,161e

10,882
16,015
21,965

11, 672
18, 504
24, 798

7,956
12,008
16,574

8,059
11,209
14,766

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

Quarter
Quarter
Quarter
Quarter

Year

6,170

,

!

STATE AND

" 1
1

GROSS PROCEEDS
1

f|

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

=
'

6,431
8,861
11,595

1967

;

5,107
5,427
4,785
5,654

5, 308
6, 063
6, 584
5, 859

!

20,973

-23,814

j

,

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




!

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

OVARTER
OR
MONTH

TOTAL

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

1968 - III
IV
1969 - I
II
IIIef

5,133
5,951
6,218
7,354
6,419

2 606
2 555
2,657
3 411
3 194

1968 - Oct.
Nov.
Dec.
1969 - Jan.
.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.ey
Oct. e/
Nov. ey

2,129
1,767
2,055
2,075
2,045
2,098
2,748
2,076
2,530
2,450
1,489
2,480
2,110
2,560

1,,009
939
607
980
842
835
1,,268
871
1.,272
1,,279
685
1,,230
960
1:,060

1

'

1
1
1
1
1

361
922
540
673
460

1,166
1,474
2,023
2,268
1,764

595
362
965
636
395
509
649
510
514
591
319
550
500
500

525
466
483
460
807
755
830
694
744
579
485
700
650
1,000

.124
113
215
227

24
49
40
103
74
38
62
28 .
137
132
122
n. a.
n. a.

GROSS PROCEEDS BY
TYPE OF ISSUER
PUBLIC
UTILITY

1,037
902
1,355
1,126
673

1 ,657
1,,712
1.,407
1,773
1,,954

1,,160
1 ,435
=
1.,346
1,,878
1.,417

490
319
473
432
672

365
211
326
376
578
401
430
463
233
206
167
300
50
110

640
421
651
403
513
491
513
569
691
881
382
700
450
750

674
443
319
627
315
404
784
392
702
492
505
420
640
620

115
162
41
186
56
231
44
197
191
286
126
260
120
190

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.




COMMUNICATIONS

OTHER
ISSUERS
1,,825

2,,483

2,,993
3,,266
2.,368
700
741
1,,044
860
1,,161
972
1,,405
915
946
792
476
l;,100
900
l,,000

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

December 1 through December 12, 1969
CORPON
MOODY'S
OITKRKAIE OR
RATI;.6
: ER IK/TIVU1N.C .
VI KM)
nst COST

AMOUNT'
(MILLIONS
OF
DOLLARS)

Corporate
First & Merchants Corp.
Detroit Edison Co.
Columbus & Southern Ohio
Electric, Company
Pacific Telephone &
Telegraph
Union Tank Car Co.

Conv. sub. debs.
Gen. ref.
1st mtg.
Debs.
Equip, trust
ctfs.
N

20.0
75.0

1994
1999

\ 6.00
\ 9.00

6.00
8.84

N.R.
Aa

9.00

8.90

Aa

20.0

1999

150.0

2004

9-1/8

9.10

Aaa

25.0

1989

9.30

9 . 30

A

1999
1974

9-5/8
9-3/8

9.40
9.38

Aa
Baa

1989

9-1/2

9-1/2 '

Aa

Meridian Investing and
Development Company
Com. stk.
40.0
United Tank Car Company
Com. stk.
22.0
. Mississippi Pwr. & Lt. Co. 1st mtg.
20.0
1st mtg.
Northwest Natural Gas Co.
15.0
Natural Gas Pipeline
Co. of America
1st pipeline
30.0
Natural Gas Pipeline Co.
of America
Cum. pfd. stk.
15.0
Transworld Airlines, Inc.
Gtd. Loan Ctfts .70.0
Investment Properties Assoc .Jr. Mtge.
81.7
Public Srv. Elec. &.Gas Co. Com. stk.
42.5
General Public Utilities
Debs.
50.0
Tenneco Corporation
Debs.
75.0
Ohio Power Company
1st mtg.
80.0
Atlanta Gas & Lt. Co.
Bonds
20.0
Georgia - Pacific Corp.
Conv. sub. debs. 75.0
Beeton Dickinson & Company Conv. sub. debs. 40.0
Walter E. Heller & Co.
Sr. debs.
30.0
Northern Illinois Gas Co.
Bonds
20.0
Citizens Mortgage InvestBenf. int.
ment Trust
w/w
21.0
Arkansas Power & Light Co. 1st mtg.
25.0




1985
1992

10.00
9.00

10.00
9.00

Baa
N.R.

1974
1975
1994
1974
1994
1989
1989
1994

10-1/4

10.00

9.00
9-1/8
5-3/4
5.00
9.50
9.00

8.83
9.06
5.75
5.00
9.50
8.80

. Ba
Ba
Aa
A
Ba
Baa
N.R,
Aa

1999

9.25

9.08

.

A

TABLE b: Lnrqp LOIKI trim Public Security Issues for Nev. R,I;-jtnl fc<>ntm-1. Mi
lOtliot than U.S. Tro.isuiy)1
.\:n u ::i "
ISSl'KR

OF'
DOLLARS)

December 1 through December 1%, 1969.
riuipoN
' RATF. OK
"I I L:L<- MOODY'S
MATURITY : NI:I INTKR I:.(
RATING
; EST COST
VI I.I.I) '

State & local Government
West Virginia, State of
Montgomery Co. , Maryland
New York State Dormitory
Authority
Mecklenburg Co., N.C.
Richmond, Virginia
Texas
Oregon, State of
Oregon, State of
Port of New York Authority
Greater Chicago Metropolitan Sanitary Dist., 111.
Tulsa Municipal Airport
Trust, Oklahoma
Tulsa Municipal Airport
Trust, Oklahoma
Other
Quebec Hydro-Elec. Comm.
F.N.M.A.
F.N.M.A.

Rev.
G.O. .

90.0
33.0

1970-94
1971-90

Rev.
G.O.
G.O.
G.O.
G.O.
G.O.
Ctinsol. notes

32.2
14.3
38.0
15.0
40.0
12.0
50.0

1971-2000
1971-94
1971-90
1979-95
1974-83
1973-2000
1972

G.O.

20.0

1980

Rev.
Rev.
Debs.
Debs.
Debs.

3.0-

6.89
7.00

5.50-7.15
5.60-7.50

A-l
A

7.55
6.45
6.28 '
6.25
6.55
6.86-6.90
7-1/2

6.00-7.50
5.50r6.60
5.40-6.35
5.80-6.50
6.00-6.50
5.90-6.80
7.50

A
Aa
Aaa
Aaa
Aa
Aa

.

6.10-6.70

197.2-80

11.0

1994

50.0
250.0
400.0

1995
1973
1971

6.40-7.20
7.75
9-3/4
8.30
8.60

9.88
8.30
8.60

——

—

A
-

X
Rights offering.
Includes corporate and other security offerings of $15 mi I l.i or\
State and local security offerings of $10 million and over.
1 h case of State and local government securities, G.O. denotes
b 1 igat ion ;
'<ev. - Ut. , revenue obligations secured on I v by income from publ
i c ut i1i
Rev.-Q.-l't. , revenue binds secured only by income from quasi ut i1iL ies ; Rev.-S .T. ,
revenue bonds secured by revenue trom specific taxes only; K v.- Kent. , revenue
bonds secured sol ely.by lease payments.
Inc1udes fori- i gn government and International Bank for Reconstruction and
Development issues and non-quaranteed issues by Federal Agencies.




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

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

Corporate
Kane-Miller Corporation
Southwestern Elec. Pwr. Co,
Eastern Air Lines, Inc.
*MGIC Investment Corp.
*Mohawk Data Science Corp.
General Telephone of
- California
Pennsylvania Co.
South Carolina Elec. & Gas
^Central Tele. & Util. Corp.
University Computing Co.
*Zayre Corporation
*Pennzoil United Inc.
^Guardian Mtg. Investors
Iowa Pwr. & Light
Ohio Bell
Central Pwr. & Light Co.




S.F. debs.
1st mtg.
Conv. sub. debs.
Conv. debs!
Conv. debs,

22.5
35.0
80.0
50.0
25.0

December
December
December
December
December

15
15
15
16
16

1st mtg.
Debs.
Bonds
S.F. debs.
Conv. debs.
Conv. sub. debs.
Debs.
Conv. sub. debs.
Bonds
Debs.
Bonds

60.0
50.0
15.0
25.0
40,0
20.0
45.0
15.0
15.0
100.0
25.0

December
December
December
December
December
December
December
December
January
Janaury
January

16
16
17
17
18
18
18
22
5
6
7

TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury) 1
(continued^
As of December 12, 1969.

!

' ISSUER

.

TYPE •

AMOUNT •
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

State & local Government
G.0.
Woodhaven S/D , Michigan
Rev.
Oakland Co., Wisconsin
Rev.
*0wensboro, Kentucky
Port of Seattle, Washington Bonds
G.0.
*Peabody, Massachusetts
Rev.
Ohio, State of
Rev.
Los Angeles DWAPS
G.0.
-Pennsylvania, State of
Airport Rev.
Chicago, Illinois
Rev.
^Dallas, Co., Texas
G.0.
San Francisco
Seattle Dept. Lt. & Pwr.
Bonds
Washington
Jefferson Parrish S/D #1,
G.0.
Louisiana
Rev.
San Francisco, Port Comm.
Rev. , ,
*San Francisco B.A.R.T.
Snohomish Co. Public
Rev.
Dist. # 1, Washington
-Snohomish Co. Public
Rev.
'
Utility District
Rev.
Clark Co., Nevada
Wheeler Ridge - Maricopa
Rev.
Wtr. Dist., Colorado
Sacramento Municipal Util.
Rev.
Dist., California
*Hennepin, .Ramsey, Anoka,
Dakota, Washington, Scott
& Carver Cos. Metropolitan Council. Minn.
i Rev.
Rev.
-King Co., Washington

12.0
11.9
52.0
16.0
15.9
50.0
39.0
125.0
56.0
12.0
49.1

December 15
December 16
December 16
December 16
December 16
December,16
December 17
December 18
December
January
8
January 12

17.0

January

13

10.0
11.0
50.0

January
January
January

14
14
15

15.0

January

15

15.0
13.0

January
January

15
20

16.0

January

21

58:0

January

22

11.0
13.5

January
January

22
27

Other
NONE
*
1
2."

Included in table for first time.
Includes corporate arid other issues of $15 millibn 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.
Postponement this week: Atlanta, Georgia - 18.0; no bids received because of a
TL interest limitation.




Indianapolis, Indiana - 10.0; no bids received because
of 6-1/2% interest limitation.
Baltimore Gas & Electric - 25.0; postponed because of
market conditions.

TABLE 8: Stock Prices and Volume

60.7(8/14)
27.4(1/6)

33.5(10/27)
8.3(1/6)

1968 - High
Low

108.37(11/29) 985.21(12/3) 33.25(12/20)
87.72(3/5)
825.13(3/21) 22.00(3/22) j

82.1(6/7)
34.0(2/23)

45.4(6/7)
14.1(2/23)

1969 - High
Low

106.16(5/14)
89.93(7.30)

82.6(10/17)
32.8(4/4)

38.4(5/9)
12.9(4/4)

196 •• Nov.

Dec.

.7
14
21
28

968.85(5/14) 32.91(1/3)
783.53(12/11)25.02(7/29)

NYSE

!

TRADING

1

1967 - High
Low

STOCK PRICES 1
s&p
^
D.J. - IND.
500
1
AMEX 4
97.59(9/25) 943.08(9/25) 24.52(12/29)
80.38(1/3)
786.41(1/3) 13.78(1/27)

r

-DAT!-

AMEX

98.26
97.07
94.32
93.81

860.48
849.85
823.13
812.30

28.61
28.31
27.27
27.34

" 60.0
.47.1
54.2
41.7

26.4
19.1
18.1
15.9

5 91.73
12jj90.81

793.03
786.69

26.62
26.34

55. 6
56.9

20.6
21.4

l

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

2

Total number of shares traded per week (millions of shares). In the past,
trading was normally conducted 5 days a week for 5 1/2 hours per day, or
27 1/2 hours per week. From August 8 through August 20, 1967, daily trading was reduced to 4 hours per day or °20 hours per week. A 20-hour week
was also in effect from January 22 through March 1, 1968. From June 30
through December 31, 1968, the exchanges were open 5 1/2 hours for 4 days
a week or 22 hours. From January 3 through July 3, 1969, the exchanges
were open 4 hours each day, 20 hours per week. Beginning July 7, 1969
the exchanges have been open 4 1/2 hours each day, 22 1/2 hours per week.
NYSE is New York Stock Exchange; AMEX is American Stock Exchange.

;

3

1941-43 = 1 0 .

4

Average dollar value of shares listed.




-

Highs and lows are

STOCK PRICES AND TRADING VOLUME
AMEX

35

.

Weekly

-

STOCK PRICES

33

AMEX PRICE LEVEL INDEX / 1/1

29
S&P's 500

D.J. IND.

(Ind)

(500)

1300

130

1260

126

1220

122

1180

118

1140

114

1100

110

1060

106

1020

102

900

90

860

86

820

13

740
AMEX TRADING

VOLUME

(TOTAL FOR WEEK)

40
20
i.
NYSE TRADING

1965

VOLUME

(TOTAL FOR WEEK)

1966




1967

1968

1969

TABLE 9: Security Credit
NET CRKIUT
CUSTOMERS' NET 'EXTENDED BY
FREE CREDIT
BROKERS AND
DEALERS 3
BALANCES

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

CUSTOMERS'
NET DEBIT
BALANCES

6,250
6,200
6,200

2,560
2,630
2,710

8,810
8,830
8,900

~8>859
9,029
9,970

3,407
3,419
3,717

5,930
5,750
5,590
5,570
5,670
5,340
5,170
5,000
4,940
5,030

2,750
2,810
2,780
2,760
2,770
2,740
2,700
2,670 .
2,620
2,570

8,680
8,560
8,370
8,330
8,440
8,080
7,870
7,670
7,560
7,600

9,042
9,148
8,318
8,044
8,474
8,214
7,515
7,019
7,039
7,243

3,597
3,647
3,294
3,077
3,084
3,085
2,783
2,577
2,579
2,753

1968 - Oct.
Nov.
Dec.

-140
-50

40
70
80

1969

-270
-180
-160
-20
100
-330
-170
-170
-60
90

40
60
-30
-20
10 -30
-40
-30
-50
-50

END OF PERIOD
Outstanding::
1968 - Oct.
Nov.
Dec.
1969 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.r/
Oct. j>/

1

5,452
5,610
6,073
5,445
5,501
5,024
4,967^
5,390
5,129
4,732
4,442
4,460
4,490

Change in
Outstanding:

1

2
3

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

100
20
80

135
170
761

-220
-120
-190
-40
110
-360
-210
-200
-110
40

-928
-51
-830
-274
430
-260
-699
-496
20
204

281
12
298
: -120
50
-351
-271
7
1
-302
-206
2
174

-138
158
563
-628
-9
-477
-57
423
-261
-397
-290
18
30

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 o! such
loans included is thought to have been small.
"Bank loans to others than brokers and. dealers for purchasing or carrying sv< -.irities 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 tin* New Yor!<
Stock Exchange and are end of month data. Bank loans are for weekly reporting
large commercial banks. Broker data includes loans for regulated securi.L i .*•«; bank
data includes loans for the purpose of purchasing or carrying any sccuritv, v.hether
regulated or not.
. ' '




/:

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

DATE

MUTUAL SAVINGS BANKS
SAVINGS •
& LOAN ASSOCIATIONS
REGULAR DEPOSITS 3
NET
SHARE CAPITAL
NET
ANNUAL
' NEW
ANNUAL
NEW
2
NET'
GROWTH
MONEY • NET '
GROWTH
MONEY 2
1
1
FLOW
RATE
FLOW
RATE

TOTAL
. DEPOSITS •
ANNUAL
NET '
GROWTH
RATE 1
FLOW

i
XKT
.
NEW
j MONEY2

Not Se asonally Adjusted
1966
1967
1968
1969 to date

2,557
5,082
4,186
2,107

1968 - A u g .
Sept.
Oct.

238
505
202

1969 - Aug.
Sept.
Oct.

.

95
303
-138

4.9
9.3
7.0
- --

—

227
2,376
1,143
-684

3,584
10,687
7,396
3,684

181
-38
89

389
1,133
495

24
-269
-266

3.2
9.4
5.9
- -

-.

- -

-

8
877
-379

-552
6,129
2,676
-782

6,141
15,769
11,582
5,791

366
348
446

627
1,638
697

- 25
-104
-405

87
1,184
-517

3.8
9.4
6.3
—

-325
8,505
3,819
-1,466
547
310
535

-

1
- 373
-671

Seasonally Adjusted
1969 - May
June
July
Aug.
Sept.
Oct. £/
1
2
3

357
178
-47
191
172
26

6.6
3.3
-0.9
3.6
3..1
0.5

-——
•
--- -

498
491
-40
275
500
-101

4.5
4.4
-0.4
2.5
4.5
-0.9

855
669
• - 87
' 466
672
-75

5.2
4.0
-0.5
2.7
4.0
-0.4

,

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 967 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.
SOI RCh: National Association of Mutual Savings Hanks and Federal Home Loan Hank Hoard.




--

SAVINGS FLOWS (seasonally adjusted)
Monthly

Millions of

2000
1600

TOTAL

1200

800
400

0
400
1200
SAVINGS & LOANS

800

400
'

+

0

400

800
MUTUAL SAVINGS BANKS

400
+
0
400

1966

1967




1968

1969

1970

TABLE 11: Mortgage Commitments at Selected Thrift Institutions

DATE

1968 - sept.
Oct.
Nov.
Dec.

TOTAL

OUTSTANDING COMMITMENTS
1
NET CHANGE
ALL
ALL
MUTUAL
1
SAVINGS
TOTAL
SAVINGS &
SAVINGS &
BANKS
• \
LOAN
LOAN
(N.Y. STATE)
ASSOCIATIONS
ASSOCIATIONS
(Billions of Dollars, Sea sonally Adjusted) 1/

9.1
9.5
9.7
9.7

6.2
6.4
6.5
6.6

2.9
3.0
3.2
3.1

.14
.35
.27
-.01

1969 - Jan.
9.9
Feb.
10.1
10.3
Mar.
Apr.
10.5
10.3
May
10.,2
June
July
-9.\9
Aug.
9.5
9.1
Sept.£/

6.7
6.9
,7.0
7.2
7.1
7..0
6.8
6.5
6.3

3.2
3.2
3.3
3.3
3.2
3.2
3.1
3.Q
2.8

.15
.25
.17
•19,
-.19
-.09
-.28
-.43
-.36

V

1

\
\MUTUAL
SAVINGS
BANKS
(N.Y. STATE)

.10
.22
.10
. 08

-.10

.08
.22
.09
.18
-.10
-.05
-.21
-.32
-.21

j07
.03
.08
.01
-.09
-.04
-.08
-.11
-.15

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. SS.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 total's because
of rounding.




,04
.13

.ll

.

MORTGAGE COMMITMENTS OUTSTANDING (seasonally adjusted)
Monthly

Billions of dollars

10
TOTAL

S&L'S

I.Y.-MSB'S

Includes building loans beginning August 1967

1960




1962

1964

1966,

1968

\
7

1970

TABLE 12: Net Change in Mortgage Holdings

DATE

TOTAL
|INCLUDING
I FNMA-GNMA

1

FINANCIAL INSTITUTIONS
MUTUAL
SAVINGS
TOTALf COMMERCIAL
SAVINGS
LOAN
BANKS
BANKS
i ASSOC.
1

LIFE .
' INSURANCE
, COMPANIES

' r:y_\-r.MA

Not Seasonally Adjusted
1966
1967
1968

18,197
19,988
23,776

15,874
18,191
21,268

4,705
4,369
6,677

2,760
3,118
2,796

3,761
7,538
9,330

4,648
2,914
2,465

1968 - June
2,151
July
1,835
Aug..
1,995
-Sept.
1,997
Oct.
2,258
1969 - June . - 2,387
July
1,688
Aug.
2,124
Sept.
1,987
Oct.
--

1,931
1,683
1,854
1,889
2,097
2,165
1,395
1,596
1,486

645
517
549
746
751
575
200
400
500
300

219
248
233
221
313
230
215
181
120
158

901
718
874
810
845
1,216
865
. 844
687
595

166
200
198
112
188

1969 - Jan.
Feb.
Mar.
Apr;
May
June
July
Aug.
Sept.
Oct.

1,948
2,025
1,906
1,910
1,808
1,875
1,364
1,370
1,385

--

„

144
115
171
179
n. a.

638
668
632
567
534
440
151
310
383
244

—

281
266
240
250
251 .
230
181
147
137
80

-885
884
875
899
854
1.022
859
720
. 674
614

.

220
152
141
108
166

i

222
293
528
501
589

.

!

Seasonally Adjusted
2,101
2,202
2,099
2,117
2,032
2,153
' 1,698
1,900
1,896

:

2,323
1,797
2,508

144
207
159
194
169
183
173
193
191

•

153
177
193
207
224
278
334
530
511
568

-

i

!
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 o f Li fe 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 87 per cent of the npf increase estimated for all holders in 1967.




NET CHANGE IN MORTGAGE HOLDINGS (seasonally adjusted)
Monthly

Billions of dollars

3.0

2.5

TOTAL, INCL. FNMA - GNMA

2.0

FINANCIAL INSTITUTIONS

1.5

1.0

1966




1967

1968

1969

. TABLE 13: Net Increases in M o r t o n Ceht Outstanding '
Billions of dollars, SAAB. 2 ,

QUARTER

RESIDENTIAL

TOTAL

1- to 4. FAMILY

MULTIFAMILY

2.2
2.1
2.2
2.4

4.3
3.5
2.6
; .2.3

6.9
6.5
5.4
4.3

11.6
10.0
8.3
6.2

2.4
2.2
2.1
1. 7

6.8
10.5
15.3
16. 5

3.0
3.3
3.8
4.4

3.8
4.8
4.8
5.1

7.3
8.1
8.8
8.8

1.8
1.9
2.4
2.6

18.2
17.9
17.7
21,5

15.4
14.8
14.1
17.0

2.8
3.1
2.5
4.5

6.2
5.7
6.4
8.1

9.4
8.7
10.2
11.8

2,4
2.3
1.8
1.7

21.6
20.7
19.5

18.0
16.5
15.6

3.6
4.2
3.8

6,4
5.3
5.1

10.4
*.4
9.2

2.2
. 2.4
2.0

15.1
15.1
15.5
15.8

3.5
3.5
3.8
3.8

1966 - I
II
III
IV

19.0
15.6
10.8
'9.5

14.7
12.1
8.3
7.2

9.9
13.7
19.1
20.9

26.9
25.8
25.8
31.3

1969 - Ip
30.2
lip 28.4
IIIp 26.6

1968 - I P
IIP
. nil
iv p

•

FARM •

8.0
8.1
.8.4
7.9

18.6
18.5
19.3
19.6

15.5
1967 - I n
20.4
Hp
III , 26.3
IVp 28.6

MULTl-AND
COMMERCIAL

4.2
4.5
4.4
4.6

24.9
1965 - I
25.2
II
III • 25.8
26. 6.
IV
28.3
"24.2
18.4
15.6

COMMERCIAL

.

;

.

-—-

1

2

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 non-farm mortgage debt by type of property, where not available,
and interpolations and extrapolations, where required, estimated by Federal
Home Loan Bank Board and the Federal Reserve.
Residential mortgage debt includes nonfarm only and is sum of 1-to 4-family
and multifamily mortgage debt combined.




NET INCREASES IN MORTGAGE DEBT OUTSTANDING
Quarterly

Billions of dollars, seasonally adjusted annual rate

TOTAL

TOTAL
RESIDENTIAL

,/\

! I 1-4 FAMILY

COMMERCIAL

MULTIFAMILY
1965




1967

1969

TABLE 14: FNMA Weekly

WEEK
ENDED
1969 - Nov.. 3
10
17
24
Dec.

1
8
15£/

Auction" Results

COMMITMENTS IN $ MILLIONS
ACCEPTED
1-YEAR 1
90TOTAL
6TOTAL
MONTH & OVER
OFFERED
DAY
6.6
44.1
81.7
31.0
230.2
6.2
50.6
101.9
45.1
267.4
10.4
67.3
122.7
45.0
242.6
13.0
67.7
122.3
41.6
233.4
235.9
242.9

120.6
24.2
123.0
23.2
(120.0)3/

67.0
77.0

29.4
22.7

IMPLICIT YIELD 2(per ccnt)
90DAY
8.44
8.47
8.50
8.53
8.57

8.62

, MONTH ,
8.49
8.49
8.51
8.54

1-YEAR
& OVER
8.45
8.47
8.48
8.50

8. 58
8.64

8.52
8.57

6-

1

Note: Under the FNMA auction system, approved sellers of Governmentunderwritten mortgages bid for FNMA forward purchase commitments, subject to an over-all dollar limit announced by FNMA in advance. Bids
accepted by FNMA arc 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

For "proposed construction" of new horhes^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 Covc rnment-undcrwritten mortgages. Yields shown
are gross, before deduction of 50 basis points fee,paid by investors
to servicers.

I-'NMA announced



limit of accepted bids for next w e k ' s auction.

V
FNMA WEEKLY "AUCTION" RESULTS

$ Millions
120

AMOUNT OF ACCEPTED BIDS BY COMMITMENT PERIOD
100

80
1 YEAR
A N D OVER

60

40

6 MONTHS

20

3 MONTHS

Pei
" IMPLICIT YIELD
6-MONTH COMMITMENTS

7.4

_____

6.8

Millions
400

300

200

TOTAL BIDS RECEIVED

100
TOTAL BIDS
ACCEPTED
JUNE

OCT.

AUG.

1968




DEC.

FEB.

JUNE

1969

AUG.

OCT:

DEC.

TABLE 15: Private Housing Starts and Permits
STARTS
SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE

TOTAL

UNADJUSTED
TYPE OF. FINANCING
"FHA | VA I
OTHER

'!

1968 - Sept.
Oct.
Nov.
Dec.

1,592
1,570
1,733
1,509

1969 - J a n .
1,878
1,686
« Feb.
Mar.
1,584
Apr.
1,563
MayS i , 509
June
k,469
July
[L,371
- Aug.
1,384
Sept.2/1,533
Oct. £/l,342

944
965
905
922

648
605
828
585

134.3
140.8.
127.1
96.4

1,066

812
711
756
766
626
661
606
661
690
577

101.5
90.0
131.9
159.0.
155.5
147.3
125.2
124.9

975
828
797
883

808
765
723
843
765

128.6
118.7

_ L _ J
18.6
21.4
17.5
16.3
14.2
13.2
18.9
23.0
21.1
21.5

20.8
22.4
18.3
24.9

L
4.6
5.3
4.2
4.4

111.1

3.8
3.5
3.9
4.4
4.3
4.6
4.7
4.2
4.8
5.0

83.5
73.3
109.1
131.6
130.1
121.2
99.7
98.3
105.5

114.0
105.4
75.7

88.8

BUILDING
PERMITS
(SEASONALLY
ADJUSTED •
ANNUAL
2
RATE)
1,393
1,378
1,425
1,463
1,403
1,477
1,421
1,502
1,323
1,340
1,228
1,245
1,201
1,119

Total starts are Census estimates, including farm for both permit-issuing and
noi.-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 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.




J

PRIVATE HOUSING STARTS AND PERMITS
M o n t h l y i a n n u a l rates

Millions of units

SEASONALLY ADJUSTED

2.0

HOUSING STARTS

1.6

BUILDING PERMITS
(in issuing areas)

PER C E N T OF U N A D J U S T E D T O T A L S T A R T S

MULTI-FAMILY

GOVERNMENT UNDERWRITTEN
1963




1965

1969

TABLE 16: Mortgage and Bond Yields
FHA
MORTGAGES

2

25-YEAR 30-YEAR
1957 - High T
1968 - Low
1959-60 - High
1961-66 - Low
1966 - High
1967 - High
. Low
1968 - High
|
Low

5763 ™
5.35
6.26
5.43
6.73 „
n.a.
n.a.
n.a.
n.a.

n. a.
n.a.
n.a.
5.44
6.81
6.81
6.29
7.52
6.78

1969

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

8.06
8.06
8.38
8.36
8.36
8.40
8.48

Apr.
May
June
July
Aug.
Sept.
Oct.

CONVENTIONAL
MORTGAGES
. 3

6.00
5.55
6.30
5.80
6.70
6.65
6.40
7.40
6.75
7.75
7.75

8.00
8.10

8.20
8.25
8.30

1

-NEW
SPREAD BE- !
TWEEN YIELDS Aaa CORON CONV. &
PORATE
FHA MORTBONDS
4
GAGES
.47
.15
.23
.25
.30
.11
-.12
.12
-.27
-.31
-.31
-.35
-.26
-.16
-.15
- -.18

4.94
. 3.65
5.25
4.41
5.82
6.51
! 5.18
6.79
6.15
7.17
7.22
7.58
7.63
7.65
7.98
7.89

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES
-

1.58
.88
1.69
.77
i. 16
1.28
.27
1.20
.26
.89
.84
.77
. 73
.71
.42
.59

Ne'i ther~ mortgage nor bond yields include allowance tor servicing co.sL;> wliidi
much highejr for mortgages than for bonds. Generally, bonds pay interest.semi
annually; 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 FIIA-field-off ice opinions about average bid prices in the private
secondary market for new-home mortgages for immediate delivery. Separate
.ivifa availiable for 25-year and--beginning July 1961--30-year mortgages with
i n i'mum dojwn payments, weighted by probable volume of transactions. Yields
computed b[y FIIA, assuming prepayment period of 12 years for 25-year mortgages
and 15 ye airs for 30-year mortgages. Over the period for which they ..can b.
. compared, the movement of the two mortgage yield series has been simi lar.
Dashed linjes indicate periods of adjustment to-changes in -contractual, intrres!
rates.
|
Based- on FHA-field-office opinion on typical interest rates (rounded) on conventional jfi.rst mortgages prevailing in the market areas of insuring office
cities. Beginning with April 1960, rate, relates only to new-home mortgages;
.prior to tjhat date, rate related to both new as well as existing-home mortgages. Dashed line indicates this change in the series.
See note for Table 1.




*
MORTGAGE AND BOND YIELDS
Monthlv

HOME MORTGAGES
CONVENTIONAL

Aaa CORPORATE BONDS:
NEW ISSUES

Basis points

Y I E L D S P R E A D (FHA MORTGAGE VS. NEW ISSUE Aaa CORPORATE.BONDS)

1962

1964




1966

1968

1970

TABLE 17: Conventional Mortgage Terms
NEW HOMES

DATE

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

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

1

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

LOAN
AMT.
($000)

1
1968
Oct.
Nov.
Dec.

0.88
7..09
0.84
7..07
7,.09 . 0.89

1969

. • i;.

Jan:
Feb.
Mar.
Apr.
May

o.k
0.81
0.93
0.96
0.88
0.84
0.92
0.86
0J92
0.89

7.,16
7.,26
7. 32
|•7.47
7. 50
7. 62
July
7. 76
Aug.
7. 86
Sept.
7. 89
Oct. £/ 7. 97

l

-2

3

7 .23
7 .21
7 .23

7..30
7..39
7.,47
7..62
7..65
7..76
7.,91
8. 00
8.,05
8.,12

- 25 .6
25 .4
25 .9

25..6
25..6
25..8
25..4
25..8
25..6,.
25.,5
25.,2
25..3
25.4

74,.5
74..1
74.0

22,.7
22,.5
24,.7

73.,6
73. 3
73. 8
72. 6
73. 2
73. 0
72. 0
72. 3
72.,4
73. 1

24.,1
7.,18
23.,5
7.,28 •
24. 0 . 7. 35
24. 8
7..46
35.0
7.,54'
24. 9
7. 64
24. 5
7. 79
24. 3
7. 90
24..7
7..92
25. 1
7..98

7 .09
7 .07
7,.09

0 .84
0 .82
0.85

7 .22
7 .21
7 .23

22.5
22.7
23.3

0..86
0.,86
0.,84
0.,850..83
0. 86
0. 91
0. 93
0..92
0..91

7 .32
7 .42
7 .49
7 .60
7 .68
7,.79
7,.94
8..05
8 .08
8 .13

22.8 72,.6
20.0
22.9 72,.8
19.6
20.2
23.0 72..7
23.0 71.,8 - 19.9
22.7 71.,9
19.7
20.1
22.8 ' 71. 4
22.8 71. 7
20.1
22.6 71. 2
19.8
19.2 ,
22.2 70.7
22.3 70..3
19.6

72 . 4 . 18.3
72 .9
18.9
20.4
73 .2

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
hone-builders; and permanent loans which are coupled with construction loans to own orbuilders. Related series on conventional mortgage rates only, based on unweighted
opinions of field-office directors of the Federal Housing Administration., .ire ava i 1 ah I e
somewhat sooner than the results of the FHLB.B--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.




CONVENTIONAL MORTGAGE TERMS
Monthly

Years

30

MATURITY
NEW

25

EXISTING
20

I I II I I I 1.1 M I I II I.I I I l^-LUJ 15
80

LOAN/PRICE RATIO

EXISTING

h t I II l I i M I ! i II I i i iji i i I 65
Thousands of dollars

LOAN AMOUNT
30
NEW

20
EXISTING

1964




1966

1968

1970
* CHANGE IN SERIES