Full text of H.16 Capital Market Developments : December 23, 1968

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DtC >0 i -oc

Dec. 23, 1968

Cop

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CAPITAL
MARKET
DEVELOPMENTS

X

Capital Markets Section, Division of Research and Statistics,
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 Yields

8-13

Capital Market Volume

14-17

Stock Market

18-33

Mortgage Market




TABLE 1: Yields, Volume and Reception
CORPORATE BOND MARKET
VOLUME2
PER CENT
GROSS
SOLD BY END
BONDS SCHEDULED
MOODY'S Aaa OFFERINGS
OF WEEK
WITHIN 28 DAYS

YIELDS
WEEK ENDING:
NEW ISSUE 1
1
8
15
22
29

6.43
6.54
6.66
6.68

6.15
6.16
6.15
6.17
6.28

82
98
108
518
191

100
51
91
85
83

6
13
20
. 27£/

6.81
6.92
6.86
n.a.

6.33
6.45
6.48
n. a.

135
310
100
30

69

1968 - Nov.

Dec.
)

WEEK ENDING:

MOODY'S
Aaa

1968 - Nov.

1
8
15
22
29

4.25
4.25
4.35
4.35
4.35

Dec.

6
13
20

4.40 ,
4.45
4.57

327

95

409

n.a.
n. a.

r/445
n. a.

MUNICIPAL BOND MARKET
VOLUME2
PER CENT
GROSS
SOLD BY END
BOND BUYER
OF WEEK
20 BOND INDEX OFFERINGS

YIELDS

718
801
850
771
587

»

4.56
4.56
• 4.58
4.62
4.64

253
140
337
372
r/123

62
47
72
75
55

4.76
4.82
4.84
n.a.

r/232
r/490
r/189
19

80
92
81
n.a.

BONDS SCHEDULED
WITHIN 28 DAYS
794
848
774
587
493
673
r/494
r/328
n.a.

27£
1
1 Derived by adjusting to an Aa? basis, new issues of publicly-offered, corporate bonds
with call protection, rated A, Aa, or Aaa by Moody's Investors Service (expect serial
and convertible issues, offerings of natural gas pipeline and foreign companies, and
bonds guaranteed by the Federal Government.)

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




TABLE 2: Details on Inventories
CORPORATE BONDS IN bXNUiuAi E.
AMOUNT
(MIL.. $)

DATE
fiFVFRFD
ur
r Lfiujv

30.0
35.0

12/17
12/3

EjWV VJC

COUPON

ISSUER

7
7

Baltimore Gas & Elec.
San Diego Gas & Elec.

•

ORIGINAL RATING AND
YIELD CALL PROTECTION
6.92
7.00

Aaa
Aa

»

ESTIMATED PRO- t
PORTION SOLD
. 907=
80% •

5 yrs.
5 yrs.

CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK
ORIGINAL I INCREASE I RATING ANDI ESTIMATED PROYIELD IN YIELD I CALL PROT.|PORTION RELEASED
ISSUER
AMOUNT

NONE

DATE

INVENTORIES
MUNICIPALS
IN
SYNDICATE
BLUE LIST

CORPORATES
IN SYNDICATE

1968 - Nov.


N.C. - No call protection, p Daily average of three days ended Wednesday.
http://fraser.stlouisfed.org/
^
^S-'V
m"°S-Sr
*—
Federal Reserve Bank of St. Louis

T Blue List

daily average;

BONDS IN SYNDICATE
Millions of dollars

. CORPORATE BONDS IN SYNDICATE

h

'

200

'

JI1IiiIi.IIIIIL.I1

100
0

MUNICIPAL BONDS IN SYNDICATE
300

200

SEPT.

•Mill
DEC.

'67




MAR.

100

JUN.

1968

JUN.

1969

SEPT.

T A B L E 3. High Grade Bond Yields

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

DATE

U.S. GOVERNMENT
20-YEAR
CONSTANT
MATURITIES 2

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

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)

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

6.48(12/20)
5.95(9/13)

5.90(12/20)
5.18(8/9)

4.57(12/19)
3.80(8/8)

6.17
6.28
6.33
6.45 y
6.48

5.59
5.64
5.76
5.79
5.90

4.35
4.35
4.40
4.45
4.57

High
Low

1968 - High
Low
1968 - Nov.
Dec.

22
29
6
13
20£/

p
1
2
3

6.65
6.75
6.88
. 7.02
6.86/

'

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

1

MOODY'S
^
CORPORATE Aaa

U.S. GOVT. 20 YR
CONSTANT MATURITIES

MOODY'S MUNICIPAL Aaa

1966

1967

1968

1969

TABLE 4: Long:term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
NEW CAPITAL
STATE AND LOCAL 2

CORPORATE1

PERIOD
1969p

1968p

1967

1,706
1,568
1,740

1,648
1,398
2,317

April
May '
June

1,385
1,825
2,334

July
August
September

2,091
1,394"
1,497

October
November
December

e/1,900
e/1,725 '
e/1,625

1st
2nd
3rd
4th

January
February
March

Quarter
Quarter •
Quarter
Quarter

1st half
Three quarters
Year

1,750e

1969 p

1968p

1967

1,135
1,152
1,379

1,482
1,196
1,438

1,973
1,474
2,611

1,310
1,131
1,392

1,111
1,229
1,497

2,457
2,406
1,723.

1,446
1,677
1,330

943
858
1,300

2,289
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
6,058
6,584
6,092

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

4,119
3,837=
3,131
3,556

10,558
15,540
e/20,965

11,421
18,007
24,098

7,499
11,952
e/16,552

l,100e

7,956
11,087
14,643

Excluding finance companies3
1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

Y ear
e
p
V
2
3

4,943
5,265

5,207
5,913
6,338
5,657
23,115

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




TABLE 5: New Corporate Security Issues, Type of Issue and Issuer
(In millions of dollars)
GROSS PROCEEDS FOR NEW CAPITAL
AND REFUNDING 1
COMMON
BONDS
AND
PUBLICLY PRIVATELY PFD.
ISSUES INCLUDED
MFG.
OFFERED
PLACED
STOCK FOREIGN
CONVERTIBLE

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

5,464
6,208
6,833
6,294
5,178
5,705
5,133
1,500
2,385
1,771
1,6Q7
1,800
1,428
1,867
2,418
2,144
1,433
1,556
2,099
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
1,016
935

1,811
1,465
1,551
2,137
1,724
1,644
1,361

390
726
678
1,051
989
956
1,166

60
65
234
93
313
172
124

551
1,020
546
585.
593
438
521
685
528
400
433
574
500

304
278
322
226
441
271
300
385
372
396
398
509
375

19
30
16

61
236
31
89
52
47
49
28

24

NET PROCEEDS
FOR NEW CAPITAL T
PUBLIC
UTILITY

COMMUNICATIONS

2

OTHER
ISSUES

553
962
1,632
1,327
584
758
1,037

2,442
3,014
2,792
2,527
1,855
1,653
1,599

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

543
548
595
269
411
529
483

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

298
608
224
. 161
199
139
380 .
239
605
211
221
395
n.a.

512
404
1,109
278
537
417
556 e, 546
761
431
353
178
550
549
750
474
818
236
349
438
432
469
e/575
e/550
500
v 405

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

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

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.




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

.. ISSUER

'

December 2 through December 20, 1968*
COUPON
AMOUNT
RATE OR
(MILLIONS
NET INTERMATURITY
OF
TYPE
EST COST
DOLLARS)

OFFER- MOODY'S
ING , RATING
YIELD

Corporate
New England Pwr. Co.
Union Electric
San Diego Gas & 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.
Baltimore Gas & Electric Co,
Carter Group
Witco Chemical Corp.




20.0
1st mtg. bds.
56.7
Com. stk.
35.0
1st mtg. bds.
30.0
1st mtg. bds.
Conv. sub. debs,,15.0
45.0
1st mtg. bds.
Conv. cap.notes 50.0
15.0
1st mtg. bds*
30.0
S.F. debs.
100.0
Debs.
35.0
Debs.
30.0
1st mtg. bds.
15.0
Conv. debs'.**
Conv. sub. debs .15.0

1998
1998
1998
1993
1998
1993
1998
1993
1990
1988
1998
1993
1993

7-3/8

7.20

Aa

7
7-1/4
5
7-1/2
5
7-3/8
7-1/4
7-1/8
77
6
4-1/2

7.00
7.10
5.00
7.40
5.00
7.28
7.25
7.19
7.45
6.92
6.00
4.50

Aa
Aa
A
--

Aa
A
--

Aaa
—

Baa

TABLE 6" Large Long-term Public Security Issues f--r New Capital (continued)
(Other than U.S. Treasury)

ISSUER

Dec. 2 through December 20, 1968. (Cont'd)
COUPON
AMOUNT
RATE OR
(MILLIONS
MATURITY NET INTEROF
TYPE
EST COST
DOLLARS)

State & local Government
1970-99
10.0
G.O.
Philadelphia, Pennsylvania
1970-84
19.5
G.O.
Philadelphia, Pennsylvania
1993
19.6
Rev.-Rent.
Hancock Co., Kentucky
1970-89
12.0
G.O.
Norfolk, ' irginia
1998
25.0
Rev. -Rent.
Detroit, Michigan
1969-97
38.0
G.O.
Nassau Co., New York
Florida Outdoor Recreation
20.0
1969-98
Development Council
|Rev.
Rockford Sch. Dist. #205,
10.0 1970-88
Illinois
|G.O.
1974-2003
R,ev.-Rent. (elec,) 98.6
New Madrid, Missouri
Rev .-Rent, (alum) 85.0 1974-2003
New Madrid, Missouri
26.0 1971-93
ev.-Rent.
Butler Co., Pennsylvania
1973-93
22.0
ev.-Rent.
Port Huron, Michigan
1973-93
11.2
ev.-Rent,
Itawamba Co., Mississippi
1971-88
15.5
ev.-Rent.
Nevada, Missouri
40.0 1974-97
Courtland Ind. Dev. Bd., Ala, ev.-Rent.
1998
13.2
San Fran. Redev.Agency, Calit ev.-Rent
2003
100.0
ev.-Q.-Ut.
Port of New York Authority
*
1
2
3

OFFERING
YIELD

MOODY'S
RATING

5,28
5.50
n.a.
4.52
n.a.

'4.88

4.00-5.50
• 4.00-5.30
5-3/8
3.50-4.60
5.88
4/
3.60-4.90^

5.79

3.70-5.75

4.81

3.75-4.90
4.80-5.75
4.80-5.90
4.45-5.50
n.a.
n.a.
4.00-5.00
4.75-5.75
5.85
5.50

n.a.
n. a.
n.a.
n.a.
n.a.
n;a.
n. a.
n. a.
5.56

Baa-1
Baa-1
A
Aa .

A-l
A
Baa
Baa
Aaa

Other 2/
None
Rights offering.
tu 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 Bank 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.-Ut., revenue obligations secured only by income from public utilities;
Rev.-Q.-Ut. revenue bonds secured only by income from quasi-utilities; Rcv.-S.T. ,
revenue bonds secured by revenue from specific taxes only; Rev.-Rent., revenue
bonds secured solely by lease payments.
,


1 * % % bonds'wer'7 so Id


% S : ' « h i c h also included stock and warrants.

TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury)1
(continued)
As of December 20, 1968.

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

Corporate
Chris Craft Industries
Penna. Power & Light Co.
Northwestern Bell Tel. Co.
^Northern States Power
^Northern States Power
Cleveland Elec. Illuminating
Co.
Panhandle Eastern Pipeline
Duquesne Light Co.
Philadelphia Electric
*Texas Gas Transmission
Public Service Co. of
Indiana
Public Service Co. of New
Mexico
-Southern California Edison
Co, •
Forest Oil Corporation
"Virginia Elec. & Pwr. Co.
'"Allegheny Power System
"Public Service Co. of
.Oklahoma
Central Hudson Gas & Elec.
Alexander's Dept. Stores
G.S.I. Computer
Kaufman and Broad
T-esoro Petroleum
Gamble-Skogmo, Inc.
Famous. Artists Schools
Libby-McNeil' & Libby.
F. & M. Schaefer Corp.
International Leisure Corp.
Reading & Bates Offshore
' Drilling Co.
Trans World Airlines
*Purex Corp.
^Instrument Systems Corp.
*Duplan Corp.

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

26 .0
40 .0
75 .0
20 .0
2b.0

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

50 .0
40 .0
25 .0
70 .0
50,.0

December 24
January
6
January
7
.January
7
January
7
January
January
January
January
January

8
8
9
13
14

1st mtg. bds.

40,.0

January

14

1st mtg., bds.

20,.0

January

15

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

75..0
25..0
85.,0
38.,0

January
January
January
January

15
15
21
21

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

25.0 ;
20.0
20.0
- 30.0
20.0
15.0
20.0
16.5
15.0
39.0
25.0

January 21
January 23
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite

Conv.
Conv.
Conv.
Conv.
Conv.

20.0
150.0
35.0
25.0
15.0

Indefinite
Indefinite
Indefinite
Indefinite
Indefinite

10.0
30.0

December 23
December

debs.
debs.
debs.
sub. debs.
sub. debs.

State & local Government
* Onondaga Co. , N. Y.
Clinton, Iowa




G.O.
Rev.-rent.

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

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

State & local Gov't.
Delaware River Joint Toll
Bridge Comm.
Rev. -Q. -Ut.
Hampden Township Ind.. Dev.
Auth., Pa.
Rev.-rent.
Rev.-rent.
Union City, Tenn.
Port of Astoria
Rev.-rent.
"Broward Co., Fla. , S.T.D.
#1
G.O.
State of New Jersey
G.O.
New York State Dormitory
Rev.-rent.
Auth..
Rev.-Ut.
Springfield, 111.
*Penna. Higher Ed. Fa< i!ilv G.O.
Los Angeles Convention &
Rev.-rent.
Exhibition Center Auth.
Rev.-rent.
Hawaii, State of
,
State of Maryland
C.O.
Rev.-Ut.
. Cobb Co*, Ga.
Penna. State Highway ind
Rev. -Q. -Ut.
Bridge Auth.

20.0

December

10.0
30.0
150.0

December
December
December

20.0
75.0

January
January

6
7

40.7
16.0
25.0

January
January
January

7
7
8

zu.5
30.0
55.8
t::.5

January
8
January
9
January 21
Indefinite

75.0

Indefinite

20.0
15.0

January
Indefinite

Other
"Banco Nacional de Obras
y Servicios Publicos,S.A. Ext. loan bd$>.
S.F. debs, w/wts.
Canadian Utilities, T hd.

*
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: Deletions of issues other than sales: Postponed were 2 municipals—Tampa
Hillsborough Co. Expressway Auth. , $46.0 million, and Chicago Ill.'s 35.5
million issue scheduled Dec. 17 and 19, respectively.




TABLE 8: Stock Prices and Volume

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

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)

15.8
15.5
16.4
16.3
16.5

7.9
7.4
7.9
9.0
8.7

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)

1968 - Nov. 22 106..30
29 108,.37
Dec. .6 107..93
13 •'107,.58
20&1106.,34

967.06
985.08
978.24
981.29
966.99

31..80
32..54
32..93
33,.23
33.,25

p Preliminary.
,
1 - Figures, except highs and lows are Friday s only. Highs and lows are for the

3
4

Millions of shares.
1941-43 = 1 0
• • '
Based on actual dollar value, rather than a formula.




STOCK PRICES AND TRADING VOLUME
*AVFX

I

3 3

Weekly

D.I.
S&P
i tail) (500)

STOCK PRICES

A ,
AMEX PRICE LEVEL INPEX
.

••

.

;

i

S&P's .00

1040

104

980

98

920

92

360

86

800

80

740

74

D.J. IND.

AMEX TRADING VOLUME

IV
NYSE TRADING VOLUME

1965

1966




1968

1969

TABLE 9: Stock Market Credit
CUSTOMERS'
CREDIT EXTENDED TO CUSTOMERS BY: NET DEBIT
1
2
TOTAL
BROKERS | BANKS |
BALANCES
END OF PERIOD

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

Outctanding;
1967 - O c t .
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
6,300

2,430
2,420
2,370
2,350
2,360
2,410
2,420
?,490
2,520
2,560
1

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

-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

Change I n
Outstanding;
1967 - O c t .
Nov.
Dec.
1968 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.£/

,

2,513
2,500
2,763

4,59*
4,700
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

112
-13
265 •
-179
-164
-86
287
85
229
-24
-285
142
276

56
102
485
-328
-214
-85
166
482
231
156
-86
84
-126

Margin debt, as reported by the New York Stock Exchange. Although margin debt
until March 1968 included loans secured by U.S. governments, the amount of such
loans included is thought to have been small.
"Bank loans to others than brokers and dealers for purchasing or carrying securities other than U.S. governments."
The difference between customers' net debit balances and customers net free credit balances, this figure represents the net credit extended by brokers and
dealers to the nonfinancial public. NOTE: With the exception of bank loan data,
figures are supplied by the New York Stock Exchange and are end of month data.
Bank loans are for weekly reporting large commercial banks.'




TABLE 10: Savings Fb.vs :it rJonbnnk Depositary Intermediaries
(S rr.i'l 1 ion )

DATE

SAVINGS & LOAN ASSOCIATIONS
MUTUAL SAVINGS BANKS
TOTAL
REGULAR DEPOSITS 3
NET
SHARE CAPITAL
NET
DEPOSITS
NEW
ANNUAL
ANNUAL
NEW
ANNUAL
: MONEY2
-NET .
GROWTH
NET
v GROWTH
. MONEY 2 NET
GROWTH
FLOW
RATE 1
FLOW
FLOW
RATE 1
RATE 1

NET
• NEW '
MONEY 2

Not Seasonally Ad iusted
1965
1966
1967

3,563
2,591
5,079

7.4%
4.9
9.3

1967 - Sept.
Oct.
Nov.

550
210
321

1968 •- S e p t ;
!
Oct.
Nov.2./

505
202
350

--

310
303
319
356
364
388

eio
5.9
6.2
6.8
6.9
7.4

.

June
July
Aug.
Sept.
Oct.
Nov. &/
1
2
3
p

--

--

1,527
227
2,376

3,396
3,656
10,686

53
94
273

1,193
495
582

-38
89
285

1,134.
325 1 1,639
• •-r/495
r/446
r/697
653
624
1,003
Seasonally Ad l u s t e d

__
—-

,

---

!

745
501
644
770
r/792
5.90

8.3%
3.3
9.1
__
——
--

7.1
4.7 .
6.1
7.2
7.4
5.5

4,458e
-552
6,136

11,959»
6,247
15,765

494
454
552

——
-——
. --

8.0%
3.8
9.2

1,743
705
873

547
548
825

N

1,055
804
963
1
1,126
c/1,156
978

.

5,985e
-325
8,512

——

6.7
5i 1
6.1
7.1
7.2
6.1

287
r/5,35
909

__
— •*

Annual growth rate for monthly data is the annualized monthly 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 banks exclude items sych as Christmas club and certain escrow
accounts, which represent a very small part of total deposits.
SOURCE: National Association of Mutual_Savings LJU.V.S and Federal Home Loan Bank Board,
Preliminary, r / Revised,




SAVINGS FLOWS (seasonally adjusted)
Monthly

"

Millions of .1 M a r ,

0

1200

800

400

SAVINGS & LOANS

400

800

400
MUTUAL SAVINGS BANKS

400
1965

1966




1967

1968

1969

T A B L E 11: Mortgage Commitments at Selected Thrift" Institutions

DATE

1967-Oct.
Nov.
Dec.
1968-Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.

1

NET CHANGE
OUTSTANDING COMMITMENTS
ALL
MUTUAL
ALL
SAVINGS
&
TOTAL
SAVINGS
SAVINGS &
TOTAL
LOAN
BANKS
LOAN
ASSOCIATIONS
(N.Y. STATE)
ASSOCIATIONS
(Billions of Dollars, Seasonally Adjusted) 1/
8.3
8.5
8.5
8.4
8.5
8.6
8.8
8.6
8.6
8.8
9.0
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

r/6.p

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
1 .16
-.04
-.05
.05
.18
.11
-.13
-.05
.19
.24
.11
• .35

6.4

.18
.15
.03
.10
.16
.11
-.15
-.10
.08
.07
.22
-.04

MUTUAL J
SAVINGS 1
BANKS
(N.Y. STATE)
.01
.01
-.07
-.05
-.05
.02
0
.02
.06
.08
.16
.04
.13

!
1
1

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




;

f

,

MORTGAGE COMMITMENTS OUTSTANDING (saar)
Monthly

Billions of dollars

TOTAL

MSB'S

1959




1961

1963

1965

TA RLE 12: Net Change in Mortgage Holdings 1

DATE

TOTAL
INCLUDING
FNMA

TOTAL

VTNANCIAL INSTITUTIONS"
SAVINGS
MUTUAL
&
SAVINGS
COMMERCIAL
LOANS_
BANKS
BANKS

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

1967 - I
II
III
-IV

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

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

151
1,200
1,751
1,537

1968 - Jan
Feb.
Mar.
Apr.
MayJune
July
Aug.
Sept..
Oct.

1,421
1,540
1,788
1,969.
2,227
2,101
1,819
1,950
1,-898
2,311

1,071
1,236
1,514
1.723
1,992
1,881
1,667
1 ,£09
1,8i-5
2,1 >0

300
400
400
616
616
616
500
500
700
800

LIFE
INSURANCE
COMPANIES

1,860
2,706
2,460
1,947

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

142
97
221
507

753 '
513
739
715

1,671
1,674
350
86

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

1,116
889
792
593

770
786
839
758

492
2,147
2,585
2,364

860
657.
521
869

381
542
789
879
957
877
719
875
809
849

175
97
188
68
216
169
200
.201
115
88

965
946
1,072
1,078

215
197
137
160
203
219
248
233
221
. 313

584
289
793
1,002
350
304
274
246
235
220
151
141
53
161

'lllliillilli
not made.in the monthly series. ^




NET CHANGE IN MORTGAGE HOLDINGS
Monthly

'




^

TOTAL. INCL. FNMA

FINANCIAL INSTITUTIONS

Billions of l o l l i r

•I I I I I X - T — | 3.0

TABLE 13: Net Increases in Mortgage Debt Outstanding 1

QUARTER
1965

1966

I
II
III
IV
I
II
III
IV

1967 - I
II
III
IV
1968 - I
II
III

TOTAL
25.5
25.3
25.7
26.2
29.1
23.6
17.7
14.6
16.2'
20.3

11:8
27.7

26.0
25.7

RESIDENTIAL

18.6
18.5
19.3
19.6
19.0
15.3

10.6
9.2
9.9
13.7
19.1
20.9

18.2
18.5

18.0

1- to 4-I MULTIFAMILY
FAMILY
15 ;1
15.1
15.5
15.8
14.7

12.1
8.3
7.2

6.8
10.5
15.3
16.5
16.3
14.6
14.6*

MULTI-AND
COMMERCIAL I COMMERCIAL




2.2

8.1

2.1

2.4

3.5
3.5
3.8
3.8

4.2
4.5
4.4
4.6

8.3
7.9

2.2

4.3
3.3
2.3

7.0

2.4

2.0

5.1
4.0

11.7
9.4
7.7
5.6

3.1
3.3
3.8
4.4

3.8
4.8
4.8
5.1

7.3

1.8

2.0
3.9
3.4

6.1

8.0

2.2
2.1
1.7
1.9
2.4

2.6

a.6
9.2
9.2

6.3
5.3
5.5

ana

and multifamily mortgage debt combined.

FARM

8.0

sum o£

i- t o

2.5
2.3
2.3

£amlly

NET INCREASES IN MORTGAGE DEBT OUTSTANDING
Quarterly




Billions of dollars, seasonally adjusted annual rate

32

TOTAL

24
TOTAL
RESIDENTIAL

I 1-4 FAMILY

COMMERCIAL

MULTIFAMILY

T A B L E 14: FN,VIA Weekly

WEEK
ENDED

TOTAL
OFFERED1

v

Auction" Results'

AMOUNTS IN ) MILLIONS
ACCEPTED
TOTAL. 9061DAY
MONTH
YEAR

IMPLICIT YIELD
90DAY

6MONTH

1YEAR

Oct.

7
14
21
28

98.9
119.2
132.8
131.9

35.1
41.6
44.0
49.1

2.2
2.5
2.7
3.0

22.9
30.0
30.7
31.3

10.0
9.1
10.7
14.7

7.19
7.20
7.21
7.24

7.16
7.18
7.20
7.23

7.09
7.12
7.13
7.17

Nov.

4
11
18
25

125.1
144.4
167.0
161.4

53.8
48.1
50.3
59.7

4.9
8.4
10.3
11.1

29.5
29.3
28.8
33.7

19.4
10.3
11.1
15.0

7.26
7.29
7.33
7.37

7.26
7.30
7.35
7.40

7.19
7.23
7.26
7.30

Dec.

2 119.9
57.9
9 105.1
56.1
16
93.7 L / 56.6
23 if
(55.0)

17.5
18.4
15.1

25.8
23.5
32.6

14.6
14.1
8.9

7.43
7.47
7.52

7.46
7.51
7.57

7.35
7.42
7.46

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 period
rof 15 years for 30-year mortgages. One-year commitment? are for new homes
only.
1

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




FNMA WEEKLY "AUCTION" RESULTS
120

.AMOUNT OF ACCEPTED BIDS BY COMMITMENT PERIOD

i 100

\

6-MONTHS

1 YEAR
90 DAYS
IMPLICIT YIELD
6 - M O N T H COMMITMENTS

AUGUST




OCTOBER

DECEMRFR

FLPRUARY

TABLE 15: Private housing starts and Permits
STARTS
DATE

TOTAL .

583
638
453

135.4
118.4
80.1

19.4
15.2
15.7

r

110.7
98.7
60.8

1,253
1,204
1,368

544
462
591
669
526
575
627
651
048
r/602
792

80.5
84.6
126.6
162.0
140.9
137.9
139.8
136.6
r/134.3
r/140.0
122.7

13.9
17.0
19.6
22.6
20.5
19.8
18.8
20.9
18.6
21.4
17.5

63.2
3.4
63.5
4.1
4.5
102.4
134.0
5.4
5.5
114.9
5.0
113.1
116.2
4.9
4.8
110.9
4.6. r/111.1
5.3 r/113.2
101.0
4.2

1,148
1,394
1,416
1,340
1,280
1,281
1,289
1,290
1,393
1,378
1,390

SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL|I-FAMILY 2 OR MORE
1

1967 - Oct.
Nov.
Dec.
1968 - Jan.
Feb.
Mar.
Apr.
May.
June
July
Aug.
Sept.
Oct.
Nov.

1,496
1,590
1,250
1,456
1,537
1,511
1,591
1,364
1,365
1,531
1,518
1,592
rl,562
1,677

1
913
952 )
79X
912
1,075
920
922
838
790
904
867
944
r/960
885

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2

UNADJUSTED
TYPE OF FINANCING
FHA | VA
OTHER

,. 1
4. fi
3.6

Tctal 'starts are Cvr, ms .^sfimatos including farm Tor both permit-issuing and
non-issuing areas. A dwe 1 I ing, 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 guarnnt-.v i he .mortgagees. A r, reported by FHA and VA, a unit is started when a fir Id
of lice receives the first compliance inspection report, which is made before
footings are poured in some cases but normally after the foundations have been
completed. Capohart military housing units are excluded. Other starts are
derived as a residual^ ilthough total and FHA and VA starts are not strictly
comparable in c o n c e p t t i m i n g ; 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.
Revised.
p

Preliminary.




PRIVATE HOUSING STARTS AND PERMITS
Monthly, annual rates

SEASONALLY ADJUSTED DATA
2.0

If
STARTS

1.2

BUILDING PERM, ,
(in i^mi ik ii".' I

PI-R fLNI" OFUNADJ'JS.lu I0T4L S l A k i S
MULTI F4MIL"
,

/

V

^

GOVERNMENT UNDERWRITTEN
1963




1965

... ! ' o
1969

TABLE 16: Mortgage and Bond Yields

DATE

1957 - High
1958 - Low
1959-60 - High
1V61-66 - Low
1966 - High
1967 -High
Low
'1968 - High
Low
1968 - June
July
Aug.
,Sept.
. Oct.
Nov.

FHA
MORTGAGES

CONVENTIONAL
!
MORT25-YEAR I 30-YEAR GAGES
3
'
!
2

SPREAD BETWEEN YIELDS
ON CONV. &
FHA MORTGAGES 4

1

NEW
Aaa CORPORATE
BONDS
5

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
, AND
FHA MORTGAGES

5.63
5.35
6.24
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

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

4.94
3.65
5.25
4.12
5.82
6.53
5.20
6.66
6.24

1.58
. 88
1.69
.77
1.11
1.26
.24
1.09
.27

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

7.52
7.42
7.35
7. 8
7.2o
7.36

7.25
7.30
7.30
7.30
7.25
7.30

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

6.65
6.54
6.26
6.30
' 6.57
6.64

.87
.88
1.09
.98
.72
.72

i

|

Neither mortgage nor horn! vields take into account servicing costs which arc
muVh higher for mnrt c a w than bonds. Generally, bonds pay interest semiannually; mortgages,monthly. Mortgage yields, if computed as equivalent to
• semi-annual interest- investment, would be si irhtl y hipher than given in the
t ahle.
Based on FHA-field -uifie<> opinions about average bid prices in the private
secondary market for new-home mortgages for immediate delivery. Separate
- d..ta available for 25-year and—beginning July 1961--30-year mortgages with
minimum' downpayments, weighted by probable volume of transaction's. 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.
'
.
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*.
FHA mortgage* yield data are for 25-year mortgages through June 1961; 30-year
mortgages thereafter.
See note for Table I.
n.a. Not available.




MORTGAGE AND BOND YIELDS
Monthly

HOME MORTGAGES:

Aaa CORPORATE BONDS:

1_
1961




1963

1965

1967

1 n i l l I I I :LL
1969

TABLE 17: Conventional Mortgage Terms

DATF.

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

LOAN
AMT.
($000)

1967

Oct.
Nov.

Doc.

6.34
6.33
6.41

0.82
0.76
0.84

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
6.42
6.51

0.78
0.77
0.83

2 ).4,

72.9
74.5
74.3
• 73.4
73.2

21.7
22.2
22.4
22.2

6.57
6.58
6.59
6.64
6.81
6.97
7.10
7.12

0.82
0.81
0.79
0.80
0.87
0.86
0.83

6.52
6.55
6.64

22.5
22.7
23.1

73.0
72.9
73.1

17.3
18.3
18.4

22.7
6.70
6.7.1 . 2 2 . 6
6.72
23.0
6.77
22.6
22.5
6.95
7.12
22.6
7.23
22.5
7.26
22.7
0.85
0.82
22.6
7.25
0.8/' • 7.22
22.5
0.81
22.7
Z.21

73.7
73.6
73.3
72.8
73.1
73.1
72.6
73.0
72.6
72.4
72.8

18.4
18.0
18.6
18.3
18.5
18.4
18.6
18.7
18.4
18. 5
10.1

1%8
Jan.

| 6.39

F,-h. : o. 47
Mar.
Apr.

May
_ Jimo

, 6.50
! 6.57
:' 6.69
<-.88

7.04
Aug. j 7.10
Sept.
7.10
Oct..
7.0')

J' ' '

N-

.£/

7.07

0.86
0,94
0.88
0.88
0:Q5

0.87
0.87
0.88

6.52
6.62
6.64
6.71
6.84
7.03
7.17
7.24
7.24
7.2j

0.84

7.21

• 0.95
0.85

-5.5
25.7
25.3
-5.0
- ri. 4
25.5
25.5
25.5
„ S. 6
z >.4

74.4
73.7
73.6
74.2
74.5
74.2

22.1
22.6
22.5
22.8
22.5
23.1
22.9

7.11
7. Q9
7.07

r

11. visot.
p Preliminary.
Compiled by Federal Home Loan Bank Board in cooperation with Federal Deposit Insurance
C.drpi-ration.. Data are weighted averages based on probability sample survey of characteristics of conventional first mortgages originated by major institutional lender
groups, (including mortgage companies) for purchase of single family homes. Data exelude loans for refinancing, reconditioning, or modernization; construction loans to
home-builders; and--in this exhibit--permanent loans which are coupled with construction
loans to owner-builders. Data prior to 1965 on a comparable basis with the new series
are pending. Related series on conventional mortgage rates only, based on unweighted
opinions of regional-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.

2

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.

3

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




CONVENTIONAL MORTGAGE TERMS
Monthly

Years

MATURITY
NEW

EXISTING

20

Pe

: LOAN/PRICE RATIO

NEW

EXISTING
70

65
1963




1965

1967

1969
* CHANGE IN SFRIfS