Full text of H.16 Capital Market Developments : December 16, 1968

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DECONTROLLED AFTER SIX MONTHS
L.5.8

Confidential

Dec. 16, 1968

CAPITAL
MARKET
DEVELOPMENTS
C f /

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.




INDEX

3-5

Developments in the Corporate and Municipal Bond Markets

6-7

Capital Market Y i e l d s

8-13

Capital Market Volume

14-17

Stock Market

18-33

Mortgage Market




T A B L E 1: Yields, Volume and Reception

YIELDS
ENDING:

/
NEW ISSUE1
6.43
6.54
6.66
6.68

6.15
6.16
6.15
6.17
6.28

82
98
108
518
191

r/6.81
6
13
r/6.92
n.a.
20£/

6.33
r/6.45
n.a.

r/135
r/310
100

- Nov.

1
8
15
. 22
29

Dec.

WEEK ENDING:

1968 - Nov.

MOODY'S

CORPORATE BOND MARKET"
VOLUME 2
PER CENT
BONDS SCHEDULED
SOLD BY END
GROSS
WITHIN 23 DAYS
OF WEEK
OFFERINGS

1
8
15
22
29

—V"
MOODY'S
Aaa
4.25
4.25
4.35
4.35
4.35

4.40
6
13
r/4.45 .
n.a.
20£y1

+

MUNICIPAL BOND MARKET
'
VOLUME?
PER CENT
BONDS SCHEDULED
SOLD BY END
GROSS
BOND BUYER
WITHIN 28 DAYS
OF WEEK
20 BOND INDEX OFFERINGS
4.56
4.56
4.58
4.62
4.64

253
140
r/337
r/372
120

62
47
72
75
55

794
848
7741
587'
493

4.76
r/4.82
n.a.

214
329
304

80
92

6.73
n.a.
n.a.

bonds guaranteed by the tederal Government.)




327
r/409
n.a.

69
95
n.a.

YIELDS

2 Millions of dollars unless otherwise indicated.
n. a.-- Not available.

718
801
850
771
587

100
51
91
85
83

.

T A B L E 2:

Details on Inventories

CORPORATE BONDS IN . SYNDICATE # D
AMOUNT'
( M I L : $>

DATE
OFFERED

ISSUER

15.0
45.0
35.0
40.0
40.0

12/12
12/10
12/3
11/22
11/19

OF LATEST WEEK
RATING AND
ORIGINAL
YIELD CALL PROTECTION
COUPON

Western Massachusetts Elec.
Appalachian Power
San Diego Gas & Electric
Northern Natural Gas
Louisville & Nashville R.R.

7-=3/8
7-1/2
J
7
7-3/8

7.28
7.40
7.00
7.OS
7.40

Aa
A
Aa
A.
Baa

N.C.
N.C.
5 yrs.
• 5 yrs.
N.r.

ESTIMATED PROPORTION SOLD
, 35%
85%
70%
85%
40%

CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK
[ORIGINAL INCREASE RATING AND ESTIMATED PROIN YIELD CALL PROT. PORTION RELEASED
COUPONL YIELD
12/9
12/13

11/25
12/26

DATE
1968 - Nov.

Dec.

Michigan Consolidated Gas
Humble Pipeline

31.0
50.0

15
22
29
6
13&/

7-1/2
6-5/8

7.25
6.62

INVENTORIES 1
MUNICIPALS
BLUE LIST
|
IN SYNDICATE
305
776
319
809
268
846
r/834
796

r/241
275

N.C.
10 y :

33%
15%

CORPORATES
IN SYNDICATE
58
125
146
i

L;
Digitized forNoFRASER
call protection. p Daily average of three days ended Wednesday,
http://fraser.stlouisfed.org/
others as of Friday; in millions of dollars.

Federal Reserve Bank of St. Louis

.19
.16

40
__55. .....
1 B11.. .. irt if daily average;

BONDS IN SYNDICATE
Millions of dollars

1

CORPORATE BONDS IN SYNDICATE

'

100
i.l ll

I ii

11

iill

i.ll I J i .

i i i

MUNICIPAL BONDS IN SYNDICATE
I 300

200
I DO

StPT

DEC

'67




,JUN
1968

0
JUN

..

1969

SEPT

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

' DATE

NEW CORPORATE MOODY'S SEASONED
CORPORATE .
ISSUES(ADJUSTED
Aaa1
.TO Aaa BASIS)

U.S. GOVERNMENT
20-YEAR
CONSTANT
MATURITIES2

SEASONED
STATE AND LOCAL
GOVERNMENT
Aaa 3

1966 - High
Low

5.99(9/2)
4.82(1/7)

5.52(9/9)
4.73(1/7)

5.04(2/9)
4.50(1/21)

4.04(8/25)
3.39(1/10)

1967 - High
Low

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

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

5.73(11/17)
4.48(1/20)

4.15(12/28)
3.25(2/9)

1968 - High
Low

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

6.45(12/13)
5.95(9/13)

5\79(12/13)
5.18(8/9)

4.45(12/12)
3.80(8/8)

1968 - Nov. 15
22
29 Dec. 6
/13£/

6.54
6.65
6.75
6.88
7.02/

6.15
6.17
6.28
6.33
6.45

5.53
5.59
5.64
5.76
5.79

4.35
4.35
4.35
4.40
4.45

p
1
2
3

Preliminary.
Weekly average of daily figures. Average term of bonds included is 22-24 years.
Weekly average of daily figures.
Thursday figures. Only general obligation bonds are included; average term is 20
years.
SOURCE: MOODY'S INVESTORS SERVICE
Note--Highs and lows are for individual series and may be on different dates for different series.




HIGH GRADE BOND YIELDS

NEW CORPORATE Aaa •

MOODY'S
^
CORPORATE Aaa

U.S. GOVT. 2 0 - Y R .
CONSTANT MATURITIES

'•

1965




1966

MOODY'S MUNICIPAL A a a

1967

1968

1969

' T A B L E 4:

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

NlW CAPITAL

January
lebruary
March

STATE AND LOCAL 2

CORPORATE1

PERIOD
1969p

1968p

1,750e

1,706
1,568
1,740

1969p

1968 p

1967

1,lOOe

1,135
1,152
1,379

1,482
1,196
1,438

/ :j

1, n c
1,131
1,392

1,111
1,229
1,497

j
1
j

1,446
1,677
1,330

943
858
1,300

196/

.

1 ,648
.
1 . , 3^8
2., 1. /

1,385
1,825
2,334

1 .(
1:'4,4
I.,611

July
August
September

2,091
1,394
1,497

,457
2.,406
1 ,72 j

October
November
December

e/1,900
e/1,725
e/1,62 5'"

2.
1:,467
2,336

e/2,200
e/1,100
e/1,000

974
1,400
1,182.

5,014
5,544
4,982
e/5,425

5 :.364
b.,058
b\,584
6: ,092

3,666
3,833
4,453
e/4,600

' 4,119
3,837
3,131
3,556

7,499
11,952
e/16,552

7,956
11,087
14,643

- April
May
June

1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

1st half
Three quarters
Year

-

10,558
15,540
e/20,965

-

11.,421 .
18,007
24.,098

3
Excluding finance- companies

1st
2nd
3rd
- 4th

Quarter
Quarter
Quarter
Quarter

Year
ep
1
2
3

4,943
5,265
-

5,,207
5.,9U
6.,378
7
5., 6 ';
. 23.,11S

Estimated by Federal Reserve.
Preliminary.
Securities and Exchange Commission estimate-', of net proceeds.
Investment Bankers Association of America stimates of principal amounts.
Total new capital issues excluding offerings of sales and consumer finance
companies.
Note: Due to rounding components may not add.




T A B L E 5: New Corporate Security Issues, Type of Issue and Issuer
(In millions of dollars)

QUARTER
OR
MONTH
1967 - I
II
III
IV
1968 - I
II
III
1967 - Nov.
Dec.
1968 - Jan.
Feb.
Mar.
Apr.
May
J une
July
Aug.
Sept.
Oct.e/
Nov.e/

TOTAL

GROSS PROCEEDS FOR NEW CAPITAL
AND REFUNDING
COMMON
MEMO:
AND
BONDS
ISSUES INCLUDED
MFG.
PUBLICLY PRIVATELY PFD.
STOCK FOREIGN | CONVERTIBLE
PLACED
OFFERED

5,464
6,208
6,833
6,294
5,178
5,705
5,133
1,500
2,385
1,771
1,607
1,800
1,428
1,867
2,418
2,144
1,433
1,556
1,965
1,810

3,263
4,017
4,064
3,107
2,465
3,105
2,606
645
1,087
903
796
766
719
1,046
1,340
1,244
• 637
725
1,015
935

1,811
1,465
1,551
2,137
1,724
1,644
1,361
551
1,020
546
585
593
438
521
685
528
400
433
500
500

390
726
678
1,051
989
956.
1,166
304
278
322
226
441
271
300
385
372
396
398
450
375

60
65
234
93
313
172
124
19
30
16
61
236
31
89
52
47
49
28
n.a.
n.a.

553
962
1,632
1,327
584
758.
1,037
298
608
224
161
199
139
380
239
605
211
221
n.a.
n.a.

NET PROCEEDS
FOR NEW CAPITAL 1 2
PUBLIC
UTILITY

2,44&
3,014
2,792
2,527
1,855
1,653
1,5991

997
1,268
1,219
1,255
1,394
1,201
1,143

512
1,109
537
556
761
353
550
750
818
349
432
575
500i

404
.278
417
546
431
178
549
474
236
438
469
550
405

COMMUNICATIONS

OTHER
ISSUES

543
548
595
269
411
529
483

1,382
1,228
1,976
2,040
1,356
2,159
1,758

82
68
186
147
78
189
103
237
236
92'
155
75
145

,

p Preliminary, e Estimated by Federal Reserve. 1 Gross proceeds exceed net proceeds by the cost of
flotation. 2 For total see Table 4;
other issuers are extractive, railroad and other transporation,
real estate and finance, and commercial and other. SOURCE: Securities and Exchange Commission.
Quarterly supplements are available. n.a. Not available.




\

469
881
566
321
469
663
622
874
801
515
442
700
675

TABLE 6: Larue Long-term Public Security Issues for'New Capital
, (Other than U.S. Treasury)
December 2 through December 13, 1968.

ISSUER'

/•

, TYPE

• AMOUNT
(MILLIONS
OF
DOLLARS)

COUPON
' RATE OR , | OFFERMATURITY. NET INTER- 1 INC
EST COST 1 YIELD

MOODY ' S
RATING

Corporate
New England Pwr. Co.
Union Electric
San Diego Gas 6- Elec. Co.
Tampa Electric Company
Saturn Industries
Appalachian Power
National Bank of Detroit
Western Massachusetts Elec.
Lone Star Gas Company
G.M.A.C.
Associates Investment Co.




20.,0
1st mtg. bds.
56,,7
Com. stk.
35., 0
1st mtg. bds.
30,,0
1st mtg. bds.
Conv. sub. debs .15.,0
1st mtg. bds.
45.,0
Conv. cap.notes 50.,0
1st mtg. bds.
15.,0
S.F. debs.
30,,0
Debs.
100., 0
Debs, z
35..0

1998

7-3/8

7.,20

Aa

1998
1998
1993
1998
1993
1998
1993
1990
1988

7
7-1/4
5
7-1/2
5
7-3/8
7-1/4
7-1/8
7-1/2

7 .00
7,.10
5.,00
7.,40
5..00
7.,28
7.,25
7,,19
7,,25

Aa
. Aa
A
Aa
A
——

, A

: VILE 6 Large I : 119-term Puh!tc Security Issues for New CapiV 1 (continued)
(Oilier than U.S. Treasury)1

ISSUER

Dec. 2 through December 13, 1968. (Cont'd)
COUPON
AMOUNT
RATE OR
(MILLIONS
MATURITY NET INTERTYPE
OF
EST COST
DOLLARS)

OFFERING
YIELD

MOODY'S
RATING

State & local Government
Philadelphia, Pennsylvania
Philadelphia, Pennsylvania
Hancock Co., Kentucky
Norfolk, Virginia
Detroit, Michigan
Nassau Co., New York
Florida Outdoor Recreation
Development Council
Rockford Sch. Dist. #205,
Illinois
New Madrid, Missouri
New Madrid, Missouri
Butler Co., Pennsylvania
Port Huron, Michigan
Itawamba Co., Mississippi
Nevada, Missouri

3.0.
3.0.
Rev. -Rent
G.O.
Rev. -Rent.
G.O.

10.0
19.5
19.6
12.0
25.0
38.0

1970-99
1970-84
1993
1970-89
1998
1969-97

Rev.

20.0

1969-98

10.0
G.O.
Rev.-Rent, (elec.) 98.6
Rev.--Rent. (alum,) 85.0
26.0
Rev. -Rent,
22.0
Rev. -Rent,
-Rent,
11.2
lev.
15.5
Rev. -Rent,

1970-88
1974-2003
1974-2003
1971-93
1973-93
1973-93
1971-88

.

5.28
5.50
n.a.
4.52
n.a.
4.88 '

4. 00-5. 50
4. 00-5. 30
5-3/:
3.,50-4.60
5.88
4/
3.,60-4. 9(£Z

Baa-1
Baa-1
A \
Aa

5.79

3,.70-5. 75

A

3,.75-4.,90
4,.80-5.,75
n.a,
4 .45-5,[50
n.a,
n. a,
4 .00-5,

A-l
A
Baa
Baa

4.81
n e a.
4.80-5.90
n.a.n.a.
n.a.
n.a.

ioo

A

Aaa

2/
Other —

Rights offering.
n.a„ Not available.
Includes corporate and other security offerings of $15 million and over;
State and local security offerings of $10 million and over.
Includes foreign government and International Rank for Reconstruction and
Development issues and non-guaranteed issues by Federal Agencies.
in case of State and local government securities, G.O. denotes general obligation;
Rev.-Vt., revenue obligations secured only by Income from public utiliti. s;
Rev.-0.-Ut., revenue bonds sacured 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.
Bonds due 1988-97 not reoffered.




1

T A B L E 7:

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

December 13. 1968.

:

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

Corporate
Carter Group
Baltimore Gas & Elec. Co.
Chris Craft Industries
Pennsylvania Power & Light
Company
Northwestern Bell Telephone
Company
Cleveland Electric Illuminating Co.
Panhandle Eastern Pipeline
Duquesne Light Company
^Philadelphia Electric
*Publie Service Co. of New
Mexico
"Public Service Co. of
Indiana
Alexander^ Dept. Stores
Forest Oil Corporation
G.S.I. Computer
• Kaufman and Broad
Tesoro Petroleum
Witco Chemical Corporation
Central Hudson Gas &
Electric
Gamble-Skogmo, Inc.
Famous Artists Schools
Libby-McNeil & Libby
F. & M. Schaefer Corporation
International Leisure Corp.
Reading & Bates Offshore
Drilling Company
*Trans World Airlines

Conv. debs.
1st intg. bds.
Conv. sub. debs.

15.0
40.0
26.0

December
December
December

16
17
24 (

1st mtg. bds.

40.0

January

6

Debs.

75.0

January

7

1st mtg. bds.
Debs.
1st mtg. bds.
1st mtg. bds. .

50.0
40.0 '
25.0
70.0

January
January
January
January

8
8
9
13

1st, mtg. bds.

20.0

January

15

1st mtg. bds.
Com. stk.
Conv. debs.
Com. stk.
Conv. sub. debs.
Debs.
Conv. sub. debs.

40.0
20.0
25.0
30.0
20.0
15.0
15.0

January
14
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite

1st mtg. bds.
Cap. notes
Conv. sub. debs.
Conv. sub. debs.
Com. stk.
Units

20.0
20.0
16.5
15.0
39.0
25.0

Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite

20.0
150.0

Indefinite
Indefinite

Conv. debs.
Conv. debs.

State & local Government
G.O.
State of Mississippi
San Francisco Redevelopment
Rev.-Rent.
Agency, California
Rev.-Q.-Ut.
Port of New York Authority
Tampa Hillsborough Co.
Rev.-Q.-Ut.
Expressway Authority
G.O.
Chicago, Illinois
Rev.-Rent.
Clinton, Iowa
Delaware River Joint Toll
Rev.-Q.-Ut.
Bridge Commission
*Hampden Township Ind. Dev.
Pennsylvania
Rev. -Rent. /
Digitized forAuth.,
FRASER



12.7

December

17

13.2
100.0

December
December

17
17

46.0
35.5
30.0

December
December
December

17
19

20.0

December

10.0

December

13
T A B L E 7:

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

ISSUER

*Union City, Tennessee
Port of Astoria
State of New Jersey
*New York State Dorm. Auth.
Springfield, Illinois
»Los Angeles Convention &
Exhibition Center Auth.
Hawaii, State of
*State of Maryland
Cobb Co., Georgia
Pennsylvania State Highway
and Bridge Authority

(continued)
AMOUNT
(MILLIONS
TYPE.
OF
. DOLLARS)

APPROXIMATE DATE
OF OFFERING

Rev.-Rent.
Rev.-Rent.
G.O.
Rev.-Rent.
Rev. -Ut.

30.0
150.0
75.0
40.7
16.0

Rev.-Rent.
Rev.-Rent.
G.O.
Rev.-Ut.

20.5
30.0
55.8
32.5

January
8
January
9
January 21
Indefinite

Rev. -Q. -Ut.

75.0

Indefinite

Ext. loan bds.
S.F. debs. '
w/wts. i

20.0
15.0

January
Indefinite

December
December
January
January
January

7
7
7

Other
*Banco Nacional de Obras y
Servicio's Publicos.,S.A.
Canadian Utilities, Ltd.

*
1
2

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.

NOTE:

Richmond, Illinois1 $10 million issue - indefinite; State of Hawaii's $30 million
issue, rescheduled January 9,. Richmond, Virginia's $17.0 million issue - "market
conditions". Postponed indefinitely were two corporates - General Telephone
of Michigan, $22 million issue and Natural Gas Pipeline Company of America's
$25 million issue.




14
T A B L E 8: Stock Prices and Volume

TRADING; VOLUME 2

TOOK PRICES '
DATE

S&P
500

D.J. - IND.

AMEX4

NYSE

AMEX

1966 - High
Low

94.06(2/9)
73.02(10/7)

995.15(2/9) 17.00(4/21)
774.32(10/7) 12.07(10/7)

10.7(4/15)
5.0(9/23)

6.1(4/15)
1.3(9/23)

1967. - High
Low

97.59(9/25)
80.38(1/3)

943.08(9/25) 24.52(12/29)
786.41(1/3) 13.78(1/27)

12.3(12/29)
6.9(1/6)

6.7(10/27)
2.1(1/6

17.1(7/12)
8.2(3/29)

9.2(5/31)
2.9(3/29)

15.7
15.8
15.5
16.4
16.3

7.4
7.9
7.4
7.9
9.0

1968 - High
Low1

108.37(11/29) 985.21(12/3) 33.23(12/13)
825.13(3/21) 22.00(3/22)
87.72(3/5)

1968 > Nov. 15 105.78
22 106.30
29 108.37
Dec. 6 107.93
i3£;'107.58
p
1

965.88
967.06
985.08
978.24
981.29

31.28
31.80
32.54
32.93
33.23

Preliminary..
Figures, except highs and lows are Friday's only. Highs and lows are for the.
year and are not necessarily for Friday's.
2 Averages of daily trading volume on the New York and American Stock Exchanges.
Millions of shares.
3 .1941-43 = 10.
4 Based on actual dollar value, rather than a formula.




STOCK PRICES AND TRADING VOLUME
AM EX

Weekly
-]

i

3 3

D.J.
(Ind.)

SiP
(500)

TSTOCK PRICES

» '

•

2 7

:

AMEX PRICE LEVEL INDEX

S&P's 5 0 0

/

11040

104

i 980

98

920

92

! 860

86

| 800

80

! 740

74

D.J »ND.

"I __ j .

AMEX TRADING VOLUME

5

20

I NYSE TRADING VOLUME

I

15

10

111 • i l l 111 111
1965

1966




1967

1968

5

0
1969

T A B L E 9: Stock Market Credit

CUSTOMERS'
CREDIT EXTENDED TO CUSTOMERS BY: NET DEBIT
TOTAL
BALANCES
BROKERS 1 | BANKS 2
END OF PERIOD

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

Ontotanding;
2,513
2,500
2,763

4,5984,700
5,183

2,942
2,778
2,692
2,979
3,064
3,293
3,269 „
2,984
3,126
3,402

4,855
4,641
4,556
4,722
5,204
5,435
5,591
5,505
5,589
5,463

1967 - Oct.
Nov.
Dec.

6 ,010
6 ,050
6 ,300

2,420
2,440
2,460

8,430
8,490
8,760

7,111
7,200
7,948

1968 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
. Oct.2/

6 ,170
6 150
6 190
6 430
6 640
6 690
6 :,500
6:,460
6.,390
6S,300

2,430
2,420
2,370
2,350
2,360
2,410
2,420
2,490
2,520
2,560

8,600
8,570
8,560
8,780
9,000
9,100
8,920
8,950
8,910
8,860

7,797 .
7,419
7,248
7,701
8,268
8,728
8,860
8,489
r/8,723
8,865

220
40
250

80
20
20

300
60
270

168
89
748

112
-13
265

56
102
485

-130
-20
40
240
210
50
-190
-40
-70
-90

-30 \
-10
-50
-20
10
50
10
70
30
40

-160
-30
-10
220
220
100
80
30
-40
-50

151
378
-171
453
567
460
132
-371
234
142

-179
-164
-86
287
85
229
-24
-285
142
276

-328
-214
-85
166
482
231
156
-86
84
-126

Change In
Outstanding:
1967 - Oct.
Nov.
Dec.
1968 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct .£/

1

r

•

reported by the New York Stock Exchange.
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 arc for weekly reporting large commercial banks.




TABLE 10: Savings Flows 'it PJonBank Depositary Intermediaries
O ;.ii.lliuns)
SAVINGS & LOAN ASSOCIATIONS
CAPITAL
NET
ANNUAL
NEWNET
GROWTH
MONEY 2
FLOW
' ,.RATE 1

1

MUTUAL SAVINGS BANKS- '
REGULAR DEPOSITS 3
NET
1 ANNUAL
NEW
NET
1 GROWTH
MONEY 2
FLOW • J_
RATE 1

r

DATE

TOTAL
DEPOSITS
ANNUAL
NET
GROWTH
FLOW
RATE 1

,

NET
NEW
MONEY 2

Not Seasonally Ad lusted
1965
1966
1967
1967 - Aug.
Sept.
Oct.
1968 - Aug.
Sept.
Oct. £/

3,563
2,591
5,079
325
550
210

7.4%
4.9
9.3

—

238
505
r/202

1,527
227
2,376"

8,396
3,656
10,686

8.3%
3.3
9.1

283
53
94

646
1,193
495

--

181
-38
r/89

388
r/1,134
r/497

——

4,458e | 11,959
-552 1 6,247
6,136
15,765

--

--

623
494
454

8.0%
3.8
9.2

5,985e
-325
8,512

971
1,743
705

626
370
325 c/1,639
447
r/699

906
547
548
.

. —

551
287
r/536

Seasonally Ad lusted
1968 - May r/
June r/
July r/
Aug. r/
Sept. r/
Oct. p 7

420
310
303
319
356
£/364

8.2
6.0
5.9
6.2
6.8
r/6.9

——
——
-• ——
-M

568
745
,
501
644
r/770
r/793

5.4
7.1
4.7
6.1
r/7.2 .
. r/7.4

-_

988
1,055
804
!
963
.!
jr/.l, 126
|/1,157

- J' • •

-

6.3
6.7
5.1
6.1
r/7.1
r/7.2

uaua
dllllUdUzeQ
, „ °M
\
,
moncniy percentage increase in deposits
Net New Money is the net change in deposits net of both withdrawals and interest. Data for S&Ls
are for insured associations- only, which represent 96% of the total resources of the industry
Regular deposits at mutual savings
—
v as -t-.~•
. ' and
. certain
.
-•<->1 ude items
such
Christmas club
escrow
accounts, which represent a very small part of lot ; 1 deposits.
and Federal lime Loan Bank Br
SOURCE: National Association of Mutual Savings
Preliminary, r/ Revised.

Mo




Millions ct do I Kirs
i

1200

800

400

SAVINGS & LOANS

400

MUTUAL SAVINGS BANKS

-

1965

1966




1967

1968

1969

i

400

• TABLE 11: Mortgage Commitments at Selected.Thrift Institutions
OUT STAN I) INC COMMITMENTS
MUTUAL
ALL
SAVINGS
SAVINGS &
BANKS '
LOAN
(N.Y. STATE)
ASSOCIATIONS

DATE

TOTAL

NET CHANGE
ALL
SAVINGS &
„ LOAN
ASSOCIATIONS

MUTUAL
SAVINGS
BANKS
(N.Y. STATE)

(Billions of Dollars, Seasonally Adjusted) 1/
1967-Oct.
Nov.
Dec.
1968-JW.
Feb.
Mar.
Apr.
May
June
July
Aug.
• Sept.
Oct.

8.3
8.5
8.5
8.4
8.5

8.6

8.8

8.6
8.6

8.8

9.0
r/9.1
9.5

5.7
5.8
5.9
5.8
5.9
6.1
6.2
6.1
6.0
6.1
6.2
6.2
6.4

1

2.7
2.7
2.6
2.6
2.5
2.5
2.5
2.6
2.6
2.7
2.9
2.9
3.0

| .19
.16
-.04
i-.05
.05
.18
.11
-.13
-.05
.19
.24
i7.11
i7.35

.18
.15
.03
—-

.10
.16
.11
-.15
-.10
.11
.08
r/.07
r/.22

.01
.01
-.07
-.05
-.05
.02
0
.02
.06
.08
.16
.04
.13

Based on data from Federal Home Loan Bank Board and Savings Banks Assoications of
New York Scate. 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.




MORTGAGE COMMITMENTS OUTSTANDING (saar)
Monthly

Billions of dollars

TOTAL

6
S&L'S

I
i

MSB'S

1959




1961

1963

1965

1969

4

TABLE 12: Net Change in Mortgage Holdings 1

TOTAL
INCLUDING
FNMA

TOTAL

FINANCIAL INSTITUTIONS
SAVINGS
MUTUAL
&
SAVINGS
COMMERCIAL
LOANS BANKS
BANKS
1,860
2,706
2,460
1,947

1,165
1,030
1,066
1,600

142
97
i 221
i_ 507

753'
513
739
715

1,671
1,674
350

1,219
1,277
1,056
1,044

!

151
1,200
1,751
1,537

770
786
839
758

492
2,147
2,585
2,364

300
400
400
616
616
616
500
500
700
800

215
197
.137
160
203
219
248
233
221

1965 - I
II
III
IV,

4,955
6,528
6,624
6,454

4,813
6,431
6,403
5,947

823
1,749
1,805
1,322

1966

I
II
III
IV

5,734
6,009
4,237
3,212

4,618
5,120
3,445
2,619

975
1,656
1,300
774

I

2,857
5,079
6,489
6,530

2,273
4,790
5,696
5,528

1,421
1,540
1,788
1,969
2,227
2,101
1,819
1,950
U898

1,071
1,236
1,514
1,723
1,992
1,881
1,667
| 1,809
1,845
n.n.

1967.

II
III
IV

1968 - Jan
Feb.
- Mar.
Apr.
.
May
June
July
' Aug.
Sept
Oct.

LIFE
INSURANCE
"COMPANIES

965
946
1,072
1,078

313

86

381
542
789
879
957
877
719
875.
80o

849

860
657
521
869 '
175
97
188
68
216
169
200
201

115

1,116
889
792
593
584
289
793
1,002
350
304
274
246
235
220
!
I
1

:

151

141
53
i6i

I*™*!*
• not made in the monthly series.




NET CHANGE IN MORTGAGE HOLDINGS
Monthly

TOTAL, INCL. FNMA

P

//

//
I

1966




-

-

1

/ ,

v

/
FINANCIAL INSTITUTIONS

1967

1968

TABLE 13: Net Increases in Mortgage Dubt.Outstanding

(..UAKTER

TOTAL

RESIDENTIAL2

1965 r I
II
III
IV

25.5
25.3
25.7
26.2

18.6

1966 - I
II
III
. IV

29.1
23.6
17.7
14.6

19.0
15.3

1967 - I
II
III
TV"

rA6.2520.3

1968 - I
II
III

p:l

V27.7
r/26.0
25.7

18.5
19.3
19.6

10.6
9.2

9.9
13.7
19.1
r / 20n9
r/18.2
rA8.5

18.0

FAMILY

-MULTI-FAMILY

MULTI-AND•
COMMERCIAL | FARM

15.1 .
15.1
15.5
15.8

3.5
3.5
3.8
3.8

4.2
4.5
4.4
4.6

8.0

14.7
12.1
8.3
7.2

4.3
3.3
2.3

7.0

11.7
9.4
7.7
5.6

6.8

10.5
15.3
16.5

16.3
r/14.6
14.6

and multifatnily mortgage debt combined.




COMMERCIAL

6.1

2.0

5.1
4.0

3.1
3.3
3.8
4.4

3.8
4.8
4.8
5.1

2.0
3.9
3.4

r/6.3
r/5.3
5.5

^

8.1
8.3
7.9

2.2
2.1
2.2
2.4
2.4

2.2
2.1
1.7

7.3

8.0
8.8
8.8

r/1.8
r/1.9
r / 2.4
r/ 2. 6
r / 2.5

7/2.3

1^2

9.2

-

2.3

-famlly

NET INCREASES IN MORTGAGE DEBT OUTSTANDING
Quarterly

Billions of dollars, seasonally adjusted annual rate

TOTAL

TOTAL
RESIDENTIAL

/ 1 - 4 FAMILY

COMMERCIAL

1

MULTIFAMILY

1965




1967

1969

TABLE 14: FNMA Weekly "Auction" Results

WEEK
ENDED

AMOUNTS IN $ MILLIONS
ACCEPTED
TOTAL | TOTAL
YEAR
MONTH
OFFERED

IMPLICIT YIELD

MONTH

YEAR

1968 -Oct.

125.1
144.4
167.0
161.4
119.9
105.1
(55.0)

Note: Total, accepted shown in parenthesis for most recent week indicates
FNMA announced limit before the "auction" date. Yields are gross to FNMA
and are based on successful bid prices after allowance for commitment fees
and initial stock purchase requirements and assuming a prepayment perioc
of 15 years for 30-year mortgages. One-year commitments are for new homes
only.
1

Per cent of total offered to FNMA which is for one-year commitments on
new homes.




FN MA WEEKLY "AUCTION" RESULTS

$ Millions,

120
F AMOUNT OF ACCEPTED BIDS BY COMMITMENT PERIOD

100
80
60

y

\

6-MONTHS

40

20
1 YEAR

„

90 DAYS

" 0

IMPLICIT YIELD
6 - M O N T H COMMITMENTS

7.6

7.2

6.8
AUGUST

1968




OCTOBER

DECEMBER

FEBRUARY

1969

T A B i - E 15:

Private housing starts and

p

ermits

-

STARTS.
"DATE

SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE

1967 - Oct.
Nov.
Dec.

1,496
1 > 590
1,250

1968 - Jan.
Feb.
Mar.'
. Apr.
May
June
July
Aug.
Sept.
Oct.

1,456
1,537
1,511
1,591
1,364
1,365
1,531
1,518
1,592
1,548

TOTAL

UNADJUSTED
TYP E OF FINANCING
FHA VA
OTHER

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
•ANNUAL
RATE) 2

913
952
797

583
•638
453

135.4
. 118.4
80.1

19.4
15.2
15.7

5.3
4.5
3.6

110,.7
98,.7
60,. 8

1,253
1,204
1,368

912
1,075
920
922
838
790
904
867
944
948-,

544
462
591
669
526
575
627
651
648
600

80.5
84.6
126.6
162.0
140.9
137.9
139.8
136.6
134.1
139.0

13.9
17.0
19.6
22.6
20.5
19.8
18.820.9
18.6
21.4

3.4
4.1
4.5
5.4
5.5
5.0
4.9
4.8
4.6
5.3

63,.2
63,.5
102,,4
134,,0
114.,9 .
113.,1
116.,2
110. 9
110. 9
112. 2

1,148
1,394
1,416
1,340
1,280
1,281
1,289
1,290
1,393
1,357

*

T Mal. starts are Census estimates including farm for both permit-issuing and
non-issuing areas. A dwelling unit is started when excavation begins; all units
in an apartment structure are considered started at that time. FHA and Va
starts are units started under commitments by these agencies to insure or guarantee the mortgages. As reported by FHA and VA, a unit is started when a field
office receives the first compliance inspection report, which is made before
footings are poured in some cases but normally after the foundations have been
completed. Capehart military housing units are excluded. 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 con-wnLiona.l. mortgages and units without mortgages.
.
2 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.
r
p

Revised..

&

- Preliminary.




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

I

2.0

SEASONALLY ADJUSTED DATA

1.6
HOUSING STARTS

1.2

BUILDING PERMITS
* CHANGE IN SERIES

\ ' PER CENT OF U N A D J U S T E D TOTAL STARTS

MULTI-FAMILY

GOVERNMENT UNDERWRITTEN

1963




1965

1967

1969

30 .
T A B L E 16: Mortgage and Bond Yields
--

DATE

1957 - High
1958 - Low
1959-60 - High
1961-66 - Low
1966 - High
1967 - High
Low
1968 - High
"
Low
1968 - June
July
Aug.
. Sept.
Oct.
Nov.

=

FHA
MORTGAGES

| CONVEN- ; SPREAD BETIONAL i TWEEN YIELDS
ON CONV. &
MORT25-YEAR 30-YEAR GAGES
FHA MORT3
GAGES 4
2

n.a.

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

6.00
5.55
6.30
5.80
6.70
6.65
6.40
7.30
6.75

• .47
.15
.23
.25
.30
.11
-.12
.02
-.27

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

7.52
7.42
7.35
7.28
7.29
7.36-

7.25
7.30
7.30
7.30
7.25
7.30 ,/

-.27
-.12
-.05
. 02
-.04
-.06

5.63
5.35
6.24
5.43
6.73
n.a.
n.a.

1

NEW
Aaa CORPORATE
BONDS
5
4.94
3.65
' 5.25
4.12
5.82
6.53
5.20
6. 66
6.24
6.65
6.54
6.26
6.30
6.57 .
6.64

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES
1.58
.88
1.69
.77
1.11
1.26
.24
1.09
.27 .
.87
.88
1.09
.98
.72
• 72

Neither mortgage nor bond yields take into account servicing costs which are
much higher for mortgages than 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.
2 Based on FHA-field-office opinions about average bid prices in the private
secondary market for new-home mortgages for immediate delivery. Separate
data available for 25-year and—beginning July 1961--30-year mortgages with
minimum downpayments, weighted by probable volume of transactions. Yields
computed by FHA, assuming prepayment period of 12 years for 25-year mortgages
and 15 years for 30-year mortgages. Over the period for which they can be
compared, the movement of the two mortgage yield series has been similar.
Dashed lines indicate periods of adjustment to changes in contractual interest
rates.
3 Based on FHA-field-office opinion on typical interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring office
cities. Beginning with April 1960, rate relates only to new-home mortgages;
prior to that date, rate related to both new as well as existing-home mortgages. Dashed line indicates this change in the series.
4 FHA mortgage yield data are for 25-year mortgages through June 1961; 30-vear
mortgages thereafter.
5 „ See note for Table I.
n.a. Not available.
1




MORTGAGE AND BOND YIELDS

HOME MORTGAGES:

Aaa CORPORATE BONDS:

1961




1963

1965

1967

1969

T A B L E 17:

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

Conventional Mortgage Terms

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

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

1967
Oct. . 6.34
6.1?
Nov..
6.41
Dec.

0.78
0.77
0.83

6.47
6.45
6.54

25.4
25.3
25.4

73.8
73.4
72.7

21.2
21.2
21.5

6.39
6.426.51

0..86
0.94
0.88

6.52

25.4
25.5
25.7
25.3
25.0
25.4
25.5
25.5
25.5
25.6

72.9
74.5
74.3
73.4
73.2
74.4
73.7
73.6
74.2
74.3

21.,7
22.,2
22.,4
22.,2
22.,.l
22,. 6
22,.5
22,.8
22 .5
23 .3

0 . ,82.
6.,57
6.,58 . 0 . ,81
0 . ,79
6.,54
0 . ,80
6.,64
0 . ,87
b,.81
0,.86
6..97
0. .83
7,.10
7,.12 c/0,.85
0 .82
7 .11
0 .83
7 .08

6.52
6.55
6.64

22.5
22.7
23.1

1968
Jan.
Feb.
Marc
Apr.
May
June
-July
Aug.
Sept.
Oct;

6.39
6 . 47
6.50
6,57.
6.69
6.88
7.04
7.10
7.10
7.08

0.88
0.95
0.95
0.85
0.87
0.87
0.87

6.62
6.64
6.71
6.84
7.03
7.17
7.24
7.24
7.22

22.,7
6. 70
22.,6
6. 71
6. 72 . 23'.,0
22.,6
6. 77
22..5
6.95
22,.6
7. 12
22,.5
7.23
22,.7
7. 26
22 .6 .
7.,25
22 . 6
,22
7.

I

73.0
72.9
73.1

17.3
18.3
18.4

73.,7
73.,6
73.,3
72., 8
73.,1
73,.1
72,.6
73,.0
72,.6
.5

18.,4
18.,0
18., 6
18.,3
18.,5
18..4
18,. 6
18,.7
18,.4
18 . 6

£1

0.82
0.76
0.84

LOAN I
AMT. :
, ($000);

'8MH
case of hew home mortgage rates--in Table 16.

transfer of property ownership.
;3

include..fee. & charges amortized over a 10 year period in addition to the contract
interest rate.




CONVENTIONAL MORTGAGE TERMS
Monthly'

30
MATURITY
NEW

EXISTING

LOAN/PRICE RATIO

NEW

EXISTING

1963




1965

1967

1969
* CHANGE IN SERIES