Full text of H.16 Capital Market Developments : February 16, 1970

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DECONTROLLED AFTER SIX MONTHS
L.5.8 C o n f i d e n t i a l ( F . R . )

February

CAPITAL
MARKET

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




16,

1970.

INDEX
3-5

Developments in th^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

Revised

n.a.

Not available




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

WEEK ENDING:

1970 - Jan.

Feb.

2
9
16
23
29

8.48
8.41
8.32
8.60

6
13
20p /

8.63
8.40
n. a

WEEK ENDING:

1970 - Jan.

Feb.

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

7.90
7.91
7.92
7.90
7.91

0
454
384
557
153

7.97
7.97

206
140
400e

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

702
905
698
786
516

96
79
87
80
100
86

842
1,065

n.a.

n.a.

MUNICIPAL BOND MARKET
VOLUME 2
GROSS
OFFERINGS

PER CENT
SOLD BY END
OF WEEK

1
1 BONDS SCHEDULED
J WITHIN 28 DAYS

2
9
16
23
29

6.52
6.4.1
6.36
6.34
6.39

6.79
6.61
6.53
6.67
6.78

52
180
303
520
286

87
86
76
76
62

602
743
994
643
628

6
13
20£t'

6.28
6.26
n.a.

6.54
6,42
n. a.

343
143
250e

74

740
785

74

1 Derived by adjusting to a Aaa basis, new issues of publicly-offered corporate bonds
with call protection, rated A, Aa, or Aaa by Moody's Investors Service (except serial
and convertible issues, offerings of natural gas pipeline and foreign companies, and
bonds guaranteed by the Federal Government..)
2 Millions of dollars unless otherwise indicated.
Note:

See footnotes to Table 3




/
TABLE 2: Details on Inventories
CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK
ORIGINAL
RATING AND
YIELD CALL PROTECTION
/COUPON
ISSUER
/•

DATE
OFFERED | RELEXSED

'
8-5/8

Texas Power & Light

30.0

2/9

ESTIMATED PROPORTION SOLD

8.53

Aaa

5 yrs.

S

AMOUNT
(MIL. $)

DATE .
OFFERED

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

NONE

INVENTORIES 1
MUNICIPALS
BLUE LIST
|
IN SYNDICATE

DATE
1970 - Jan.

Feb.

CORPORATES
IN SYNDICATE

16
23
29

270
364
434

77
149
208

82
89
31

6

362
344

160
106

0
20

13j>/
N.C. - No call protection.

1 for FRASER
All figures in millions of dollars.
Digitized
which is daily average of three days


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
Friday f i g u r e s

'

-

M i l l i o n s of d o l l a r s

CORPORATE B O N D S IN SYNDICATE

200
100
nil

T

MUNICIPAL BONDS IN SYNDICATE

300

200
100

SEPT.

DEC.

'68

••

MAR.

JUN.

SEPT.

DEC.

1969

'




r

MAR.

JUN.

1970

'

SEPT.

DEC.

T A B L E 3: High Grade Bond Yields

NEW
CORPORATE
Aaa1

DATE
1967 - High

MOODY'S SEASONED
CORPORATE
Aaa2

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

BOND
BUYER'S
SEASONED
MUNICIPALS 4

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

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

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

7.84(12/26)
61.55(1/3)

6.97(12/26)
5.96(1/24)

6.90(12/18)
4.82(1/28)

8.32
8.60

7.90
7.91

6.92
6.94

6.67
6.78

8.63
8.40 v

7.97
7.97

r/6.84
6.65

6.54
6.42

Low
Low

Low
1970 - Jan.

Feb.

23
30
6
13f/

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.
3
Weekly average of daily figures.
,
4
Thursday figures. The average,rating of the 20 bonds used in this index
falls midway between the four top groups as classified by Moody's Investors Service.
N o t e — H i g h s and lows are for individual series and may be on different dates
for different series.
1

2




HIGH GRADE BOND YIELDS

•

N E W C O R P O R A T E Aaa

MOODY'S
C O R P O R A T E Aaa

U S. GOVT. 20-YR.
C O N S T A N T MATURITIES
B O N D BUYER MUNICIPAL

1966




1967

1968

1969

\

1970

Per c e n t

TABLE 4: Long-term Corporate and State and Local Government
Security Offerings and Placements
(In miflions of dollars)
GROSS PROCEEDS
CORPORATE 1

PERIOD
1970
January
February
March

2,600e
2,200e
2,800e

April
' May
June

STATE. AND LOCAL 2

1969

1968

2,075 •
2,045
2,098

1,771
1>608
1,799.

2,748
2,076
2,530

1,428
1,866
2,411

'

July
_Apgust
September

2,478
1,427
2,427

2,143
1,432
1,557

October
November
December

1,960
2,560e
2,940e

2,129
1,767
2,054

6,218
7,354
6,332
7,460e

5,178
5,704
5,133
5,950

13,522
19,904e
27,364e

10,882
16,015
21,965

1st
2nd
. 3rd
4th

Quarter
Quarter
Quarter
Quarter

1st half
Three quarters
Year

7,600e

1970
l e 300e
l,000e
l,000e

i

!

i

.

.

.

i

3,300e

!
1

1969

1968

1,262
987
538

1,178
1,158
1,404

1,801
1,110
737

1,318
1,143
1,395

1,097
808
559

1,469
1,699
1,444

1,280
886
816

2,230
1,021
1,115

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

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

6,435
8,899
11,881

7,956
12,008
16,574

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

Quarter
Quarter
Quarter
Quarter

Year

6,170

5,107
5,427
. 4,785
5,654
20,973

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




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

QUARTER
OR
MONTH

TOTAL

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

1968 - IV
1969 - I
II
III \
IV e/

5^951
6,218
7,354
6,332
7,460

2,555
2,657
3,411
3,-186
3,365

1 922
1 540
1 623
1 ,347
1 ,650

1,474
2,023
2,268
1,797
2,443

113
215
227
289

1969 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov. e/
Dec. sJ
1970 - Jan.

2,075
2,045
2,098
2,748
2,076
2,530
2,478
1,426
2,427
1,960
2,560
2,940
2,600

980
842
835
1,268
871
.1,272
1,279
685
1,222
965
1,060
1,340
1,550

636
395
509
649
510
514
609
259
479
351
500
800
500

460
807
755
830
694
744
589
482
725
643
1,000
800
550

103
74
38
62
28
137
132
122
35
59
n. a.
n.a.
n. a.

1

.

GROSS PROCEEDS BY
TYPE OF ISSUER
PUBLIC
UTILITY

1
OTHER
ISSUERS 1

902
1,355
1,126
750
515

1,,712
1,,407
1,,773
1,,862
1,,820

1,435
1 ,346
1 ,878
1 ,544
1 ,865

319
473
432
684
570

2,483
2,993
3,266
2,243
3,206

376
578
401
430
463
233
214
167
369
105
110
300
330

403
513
491
513
569
691
875
362
625
270
750
800
900

627
315
404
784
392
702
493
507
544
745
620
500
650

186
56
231
44
197
191
286
126
272
120
190
260
125

860
1,161
972
1,405
915
946
826
433
984
826
1,000
1,380
925

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

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

ISSUER
Corporate
Philadelphia Electric Co.
Orange & Rockland Utilities
Company
Ashland Oil and Refinining
Company
*Bulova Watch Company
San Diego Gas & Electric
Texas Power & Light Co.
General American Transportation Corp.


http://fraser.stlouisfed.org/
I
Federal
Reserve Bank of St. Louis

TYPE 'l

AMOUNT
(MILLIONS
OF
DOLLARS)

February 1 through February 13, 1970
COUPON
MOOPY'.
'OFFERRATI: OR
ING'
KATIM.
MATURITY . >;I.I 1..TKRYI
I-LI)
"I ST COST

1st & ref.

80.0

1995

9.00

8.78

Aaa

1st mtg.

20.0

2000

9.25

9.25

A

Debs.
Conv. debs.
1st mtg.
1st mtg.

75.0
20.9
40.0
30.0

2000
1990
2000
2000

8.80
6,. 00
8.75
8.63

8.80
6.00
8.68
8.53

A
Ba
Aa
Aaa

9.00

A

-

X
Equip, tr.
c;tfs.

50.0

1990

9.00

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

ISSUER

TYPE 2

AMOUNT
(MILLIONS
OF
DOLLARS)

Fe

bruary

l

through February 13. 1970.

j COUPON
I
RATE OR
'
MATURITY NET INTEREST COST
-

i)i-i•HRII
1-LI)

1 XI :

State & local Government

MOODY'S
RATING

Connecticut, State of
Philadelphia, Pennsylvania
New York, State
Minneapolis, Minnesota
Minneapolis-S t. Paul
Airports Commission
Los Angeles DEWAPS

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

75.0
63.7
63.0
10.7

1971
1971-2000
1971-2000
1971-90

5.93
7.43,7.89,7. 76
5.91
5.19,6.00

4. 90-6 .15
6. 00-7 .75
5. 00-6 .20
5. 00-6 .30

Aaa
Baa-1
Aa
Aaa

Rev.
Rev.

20.0
24.0

1973-99
1971-2000

6.14
6.34

5. 10-6 . 50
4. 90-6 .50

Aa
Aa

Other
Federal Land Banks
Federal Home Loan Bank
Federal Home Loan Bank

Bonds
Bonds
Bonds

1975
1971
1973

8-3/8
8.45
8.35

8-3/8
8.45
8.35

220.0
650.0
350.0

Rights offering.
Includes corporate and other security offerings of $15 million and over;
State and local security offerings of $10 million and over.
In case of State and local, government securities, G.O. 'denotes' gen-era"! obligation;
Rev.-Ut., revenue obligations secured only by income from public utilities;
Rev.-Q.-Ut., revenue bonds secured only by income from quas i-ut i I i ti es ; Rev.-S.T.,
revenue bonds secured by revenue from specific taxes only; Rev.-Rent., revenue
bonds secured solely by lease payments.
Includes foreign government and International Bank for Reconstruct ion 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
As of February 13, 1970.

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

Corporate
Hyatt Corporation
Duke Power Company
Gilbert Flexi-Van Corps.
Gould Inc.
Textron Inc.
Michigan Bell Telephone Co.
Continental Mtg. Investors
*Pacific Holding Corp.
Potomac Elec. & Pwr. Co.
Gulf States Utilities
University Computing Co.
Guardian Mtg. Investors
Duke Power
Northern Natural Gas Co.
General Tele, of Florida
Itel Corporation
*Sherwin-Wi 11 iams Co.
*SCM Corporation.
Kansas Gas & Elec. Co.
Pacific Gas and Elec. Co.
Chrysler Corporation
C & P Telephone of Va.
Atlantic City Elec. Co.
General Telephone Co. of
Southwest
Public Service Elec. & Gas
Company




Conv. debs.
Com. stk.
Conv. debs. '
S.F. debs.
Notes
Debs.
Conv. debs.
Conv. debs.
1st mtg.
1st mtg.
Conv. debs. .
Conv. debs.
1st mtg. & ref.
S.F. debs.
1st mtg.
Conv. debs.
Conv. debs.
Debs.
1st mtg.
1st mtg.
Debs.
Debs.
1st mtg.
Bonds
1st mtg.

February
February
February
February
•February
February
February
February
February
February
February
February
February
February
February
February
February
February
March
March
March
March
March

16
16
16
17
17
17
18
18
18
19
19
24
25
25
26
26
26
27
3
4
9
10
11

26.0

March

18

100.0

March

18

20.0
' 67.5
15.0
25.0
50.0
150.0
100.0
15.0
35.0
30.0
60.0
15.0
75.0
50.0
40.0
21.0
40.0
35.0
40.0
75.0
150.0
• 75.0
50.0

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

State and local Government
*Chicago, Illinois
Bergen Co. Swr. Auth.,
New Jersey
Chicago City Jr. Coll.
Dist. #508, Illinois
Hawaii, State of
Minnesota, State of
Forth. Worth, Texas
Wyandotte Bldg. Auth.,
Michigan
^
Wayne Co., Michigan
Ohio, State of
Pennsylvania, State of
Wisconsin, SJ:ate of
Salt River Project Agricultural Imp.and Pwr. Dist.
Arizona
Rutgers University,
New Jersey
*Broward Co. STSD #1, Fla.
Lorain City Sch. Dist.
#246, Ohio
Key West, Florida
Cleveland, Ohio
•Maryland, State of
•Charlotte, North Carolina
Alaska, State of
*Port of Seattle, Washington
Virgin Islands Wtr. & Pwr.
Authority
^Michigan, State
Newark, New Jersey
Penna. State Public Sch.
Building, Authority
•Buffalo, New Jersey
*Los Angeles Dept. of Wtr.
and Pwr., California
*Los Angeles Co., Flood
Control Dist., Calif.




G.O.

10.5

February

16

Rev.

20.7

February

16

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

15.0
20.0
80.0
12.6

February
February
February
February

17
17
18
18

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

18.0
26.0
50.0
75.0
50.0

February
February
February
February
February

18
19
24
24
25

G.O.

36.0

February

25

Rev.
G.O.

13.6
25.0

February
February

25
25

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

14.0
10.5
30.4
45.2
10.0
11.5
23.0

February
February
March
March
March
March
March

26
26
2
3
3
4
4

Rev.
G.O.
G.O.

20.0
36.0
20.5

March
March
March

11
17
17

Rev.
G.O.

33.0
17.5

March
March

17
23

Rev.

33.0

April

8

Rev.

20.0

April

21

„

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

ISSUER

TYPE

. AMOUNT
(MILLIONS
OF
DOLLARS)

1970.

APPROXIMATE DATE
OF OFFERING

Other
•Federal Intermediate Credit
Debs.
Bank
Tennessee Valley Authority Bonds

203.0

100.0

February
March

18
17

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.
postponements this week;




Lincoln First Banks - 25.0; postponed' because of
market conditions.
Kayser-Roth Corp. - 20.0; postponed because of
market conditions.

TABLE 8: Stock Prices and Volume
STOCK PRICES 1
DATE

S&P
500 3

1967 - High
. Low

D.J. - IND.

' AMEX

NYSE

AMEX

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

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)

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

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

1969 - High
Low

106.16(5/14)
89:20(7/17)

968.85(5/14) 32.91(1/3)
769.93(12/17)25.02(7/29)

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

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

93.00
92.40
90.92
89.07
85.02

809.20
798.11
782.60
775.61
744.06

26.71
26.97
26.55
26.31
25.46

55.7
53.0
52.2
52.5
55.3

28.4
21.5
21.1
20.1
18.8

86.33
6
13 £ ' 86.54

752.77

25.56

60.1

20.0

753.30

25.61

54.4

17.0

1970 - Jan.

;
Feb.

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

TRADING1 VOLUME 2
4

2
9
16
23
30

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

Highs and lows are

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 = 10.

4

Average dollar value of shares listed.




n

\
15

STOCK PRICES AND TRADING VOLUME
AMEX •

find.):

Weekly

(500

1280 128

STOCK PRICES

AMEX PRICE LEVEL INDEX

1 2 0 0 120

1120 112

1040 104

960

I

96

880 88

16

720
Millions of shares

I

j

A M E X T R A D I N G V O L U M E (TOTAL FOR WEEK)

60
.

40

1

ill

20

:

0

id!;-!'-

100

N Y S E T R A D I N G V O L U M E (TOTAL FOR WEEK)

80
60
40

1966

1967




1968

1969

1970

J

20

72

|

TABLE 9: Security Credit

END OF PERIOD
Outstanding:

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

!

CUSTOMERS'
NET DEBIT
BALANCES

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

1968 - Dec.

6,200

2,710

8,900

9,970

3,717

6,073

1969 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct. ,
Nov. r /
Dec. £ /

5,930
5,750
5,590
5,570
5,670
5,340
5,170
5,000
4,940
5,040
5,070
5,030

2,750
2,810
2,780
2,760
2,770
2,740
2,700
2,670
2,620
2,570
2,520
2,600

8,680
8,560
8,370
8,330
8,440
8,080
7,870
7,670
7,560
7,610
7,590
7,630

9,042
9,148
8,318 i
8,044
8,474
8,214
7,515
7,019
7,039
7,243
7,111
7,447

3,597
3,647
3,294
3,077
3,084
3,085
2,783
2,577
2,579
2,753
2,613
2,802

5,445
5,501
5,024
4,967
5,390
5,129
4,732
4,442
4,460
4,490
4,498
4,645

Change in ,
Oustandingj
1968 - Dec.
1969 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov. */
Dec. J J /

1

2
3

-270
-180
-160
-20
100
-330
-170
-170
-60
100
30
-40

80

80

761

298

563

40
60
-30
-20
10
-30
-40
-30
-50
-50
-50
80

-220
-120
-190
-40
110
-360
-210
-200
-110
50
-20
40

-928
-51
-830
-274
430
-260
-699
-496
20
204
-132
336

-120
50
-351
-271
7
1
-302
-206
2
174
-140
189

-628
-9
-477
-57
423
-261
-397
-290
18
30
8
147

-

Margin debt, as reported by the New York Stock Exchange. Although margin debt
until March 1968 included loans secured by U.S. governments, the amount of such
loans included is thought to have been small.
"Bank loans to others than brokers and dealers for purchasing or carrying securities other than U.S. governments."
The difference between customers' net debit balances and customers' net free credit balances, this figure represents the net credit extended by brokers and
dealers to the nonfinancial public.
.
NOTE: With the exception of bank loan data, figures are supplied by the New York
Stock Exchange and are end of month data. Bank loans are for weekly reporting
large commercial banks. Broker data includes loans for regulated securities; bank
data includes loans for the purpose of purchasing or carrying any security, whether
regulated or not.




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

DATE

TOTAL
DEPOSITS
ANNUAL
NET
GROWTH
RATE 1
FLOW

SAVINGS & LOAN ASSOCIATIONS
MUTUAL SAVINGS BANKS
NET
NET
REGULAR DEPOSITS 3
\ SHARE CAPITAL
NEW . •
NEW
ANNUAL
ANNUAL
2
MONEY
M
ONEY2
NET
GROWTH
GROWTH
NET
FLOW
RATE 1
RATE 1
FLOW

|
I
.

NET
NEW.
MONEY 2

Not Seasonally Adjusted .
1967
1968
1969 £/

'

5,082
4,208
2,452

9.3
7.1
3.8

2,376
1,143
-747

10,649
7,399
4,024

1968 - Nov.
Dec.
1969 - Jan.

359
694
218

--

293
-26
106

656
1,646
-92

260
468
-100

--

180
-237
-225

226
1,074
-1,425

1969 - Nov.
Dec.
1970 - Jan. j>/

1969 - Aug.
Sept.
Oct.
Nov. .
D6c. J J /
1970 - Jan. j,/

1
2
3

—

--- •

197
152
48
272
126

3.6
2.8
0.9
4.9
2.3

-103

-1.9

----- •

--

9.4
6.0
3.1
__
-•

6,129
2,676
-998

15,731
11,607
6,476

618
178
-130

1,015
2,340
126

207
-383
-1,465

486
1,574
-1,525

. Seasonally Adjusted
225
2.0
446
4.0
-173
-1.5
265
2.4
52
0.5
-762

-6.8

•- —

'

__
--

--

9.4
6.3
3.3

8,505
3,819
-1,745
911
152
-24

--

422
598
-125
537
178

2.5
3.6
-0.8
3.2
1.1

-865

-5.2

387.
-620
-1,690

Annual growth rate for monthly data is the annualized monthly percentage increase in deposits.
Net New Money is new deposits net of both withdrawals and interest. Data for S&Ls are for
insured associations only, which represent 96% of industry total resources.
Regular deposits at mutual savings banks exclude items such as Christmas club and certain
escrow accounts, which represent a very small part of total deposits.
SOURCES: National Association of Mutual Savings Banks 'and Federal Home Loan Bank Board.




---

1

SAVINGS FLOWS (seasonally adjusted)
Monthly

Millions of dollars

2000
1600

total

1200

800
400

400
1200
savings & l o a n s

800
400

400

800
m u t u a l savings banks

400

400
1966

1967




1968

1969

1970

TABLE 11: Mortgage Commitments at Selected Thrift Institutions !
OUTSTANDING COMMITMENTS
NET CHANGE
ALL
MUTUAL
,
ALL
SAVINGS
SAVINGS &
SAVINGS &
BANKS
LOAN
LOAN
(N.Y. STATE)
ASSOCIATIONS
ASSOCIATIONS
(Billions of Dollars, Sea onally Adjusted) 1/

DATE

1968 - Dec.

9.7

6.6

3.1

.01

.09

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

9.9

6.7
6.9
7.0
7.2
7.1
7.0

.18
.24
.18
.15
-.11
-.18
-.32
-.36
-.31
-.33
-.24
-.25

.11
.18
.12
.14
-.06
-.11
-.22
-.24
-. 18
-.23
18
-.13

9.9
9.5
9.2
8.9

6.5
6.4

6.1

3.2
3.2
3.3
3.3
3.2
3.2
3.1
3.0
2.8

8.4

5.9
5.8

2.7
2.7
2.6

10.1
10.3
10.5
10.4

10.2

8.6

6.8

MUTUAL
SAVINGS
BANKS
(N.Y. STATE)

Based on data from Federal Home Loan-Bank Board and Savings Banks Associations of
New York State. Data for savings banks and S&L's include a minor amount of nonresidential commitments. S&L commitments include loans in process. Net changes
are derived directly from unrounded outstandings levels as reported and after
seasonal adjustment by Federal Reserve. Subtotals may not add to totals because
of rounding.




-.08
.07

.06
.06

.02

-.05

-.06

-.10
-.12
-.13
-.09

-.06

• -. 13

MORTGAGE COMMITMENTS OUTSTANDING (seasonally adjusted)
Monthly

total

s&l's

n.y.-msb's

I n c l u d e s b u i l d i n g loans beginning A u g u s t 1967

1960




1962

1964

1966

1968

1970

S.

A

TABLE 12: Net Change in Mortgage Holdings

DATE

TOTAL
INCLUDING
FNMA-GNMA

1

FINANCIAL INSTITUTIONS
LIFE
MUTUAL , .SAVINGS &
SAVINGS
LOAN
• INSURANCE
COMPANIES
BANKS
ASSOC.

TOTAL I COMMERCIAL
|
BANKS

Not Seasonally Adjusted
18,197
19,988
23,827

15,874
18,191
21,319
n. a.

4,,705
4 ,639
6;,677
5,,152

2,760
3,118
2,796
2,459

3,761
7,520
9,350
9,367

4:,648
2,,914
2,,496
n. a.

1968 - Aug.
Sept.
Oct.
Nov.
Dec.

1,998
1,999
2,258
2,098
2,567

1,857
1,891
2,097
1,953
2,395

549
746
751
717
449

233
v^221
313
310
340

877
812
849
- 735
903

198
112
184
191
703

1969 - Aug.
. • Sept.
Oct.
Nov.
Dec.

2,124
1,967
1,795
. 1,636
n.a.

1,596
1,466
1,206
1,042

400
500
300
300
200

171
179
140
141

2,101
2,202
2,099
2,117
2,032
2,153
1,698
1,910
1,876
1,734

1,948
2,025
1,906
1,910
1,808
1,875
1,364
1,380
1,365
1,166
1,069

638
668
632
567
534
440
151
310
383
244
237
347

844
181
667
120
608
158
151
450
493
248
Seasonally Adjusted
885
281
884
266
875
240
899
250 854
251
1,022
230
859
181
720
157
654
•
137
627
124
547
146
536
199

1966
1967
1968
1969

1969- Jan.
/
Feb.
Mar.
Apr.
Hay
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

1,652

144
207
159
194
169
183
173
193
191
171
139
n. a.

to Call Report data on real estate loans outstanding as.available. Other data
derived from mortgage debt outstanding as reported separately by National Assn.
of Mutual Savings Banks, Federal Home Loan Bank Board, Institute of Life Insurance
and, through August 1968, the Federal National Mortgage Association, and thereafter by FNMA and the Government National Mortgage Association. Data for mutual
savings banks and for Life Insurance companies .may differ somewhat from those
derived 'from regular quarterly series because of minor conceptual differences for
which adjustments are not made in the monthly series. Altogether, these groups
accounted for 87 per cent of the net increase estimated for all holders in 1967.




NET CHANGE IN MORTGAGE HOLDINGS (seasonally adjusted)
-Monthly

*

B i l l i o n s of d o l l a r s

2.5

t o t a l , i n c l . f n m a - gnma

' financial institutions

1.5

1.0

1966




1967

1969

24

-

TABLE 13: Net Increases in Mortgage Debt Outstanding

1

Billions of d o l l a r s S A A R *
1- to 4FAMILY

COMMERCIAL

MULTI-AND
COMMERCIAL

FARM

4.4
3.6
2.6
2.1

6.9
6.5
5.5
4.2

11.6
10.1
8.2
. 6.2

2.4
2.2
2.2
1.8

6.8
10.5
. 15.7
16.0

3.2
3.4
3.9
3.9

3.8
4.9
4.9
4.9

7.2
8.2
8.7
8.8

1.8
1.8
2.5
2.7

18.4
18.0
18.2
20.5

15.4
14.8
14.6
16.5

3.0
3.2
3.5
4.0

6.3
5.7
6.5
7.8

9.4
8.9
10.1
11.7

2.3
2.2
1.8
1.8

22.1
21.2
19.8
16.9

17.9
16.5
15.1
13.0

4.2
4.7
4.6
3.9

6.1
5.0
4.6
5.1

10.3
9.6
9.1
9.0

2.2
2.3
2.0
1.9

RESIDENTIAL 3

- QUARTER

TOTAL

1966 r/- I
II
III
" IV

28.5
24.3
18.7
15.2

19.2
15.6
11.0
9.2

14.8
12.1
8.4
7.0

1967 r/- i
Hp
8,
III|>
IVp

15.6
20.5
27.0
27.5

10.0
13.8
19.6
19.9

1968 r/_ i
Hp
XXI]>
IVp

27.1
25.9
26.5
30.1

1969 r/- i
30.4
IIP 28.5
III > 26.4
IVp 24.0
1

2

MULTIFAMILY

.

.

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-A-family
- and multifamily mortgage debt combined.
;
NOTE:

Accompanying charts have not been revised.




,

NET INCREASES IN MORTGAGE DEBT OUTSTANDING
Quarterly

Billions of d o l l a r s , seasonally adjusted annual rate

32

TOTAL

TOTAL
RESIDENTIAL

I 1-4 FAMILY

COMMERCIAL

MULTIFAMILY
1965




1967

1969

\
. TABLE 14: .FNMA Weekly v A u c t i o n " Results

WEEK
ENDED
1969 - Dec.

Feb.

COMMITMENTS IN $ MILLIONS ,
ACCEPTED
i-yearn
90TOTAL
TOTAL
-6'
MONTH & OVER
OFFERED
DAY

IMPLICIT YIELD^(per cent)
90-

6-

1-YEAR
& OVER

DAY

MONTH

29.4
22.7
29.2
31.0
29.3

8.57

8.52
8.57

8.67
8.75
8.85

8.58
8.64
8.70
8.78
8.87

1
8
15
22
29

235.9
242.9
229.4
307.3
269.3

120.6

5
12
19
26

704.7
637.8

122.7
8.4
70.4
150.7
8.7
81.8
AUCTION CANCELLED
297.8
37.7 187.3

43.9

60.2

9.19
9.40

9.19
9.36

9.15
9.40

72.8

9.37

9.29

9.26

295.3

66.1

9.23

9.28

9.15

2
9
16
23

123.0
121.7
121.8
128.4

581.4

24.2
23.2
37.1
22.6

67.0
77.0
55.4

20.1

79.0

41.2

68.2

188.0

8.62

1

8.62
8.69
8.77

(280.0) 3/

Note: Under the FNMA auction system, approved sellers of Governmentr
underwritten mortgages bid for FNMA forward purchase commitments, subject to an over-all dollar limit announced by FNMA in advance. Bids
accepted by FNMA are for delivery at the seller's option, and at any
time within the specified period. Bids on proposed homes relate to
construction not yet started on which mortgages may be delivered only
after completion and occupancy.
For "proposed construction" of new homes only.
Average secondary market yield after allowance for commitment fee and
required purchase and holding of FNMA stock, assuming prepayment of
15 years for 30-year Government-underwritten mortgages. Yields shown
are gross, before deduction of 50 basis points fee paid by investors
to servicers.

 3 FNMA announced


limit of accepted bids for next week's auction.

FNMA WEEKLY "AUCTION" RESULTS
$ Millions

200

AMOUNT OF ACCEPTED BIDS
BY C O M M I T M E N T PERIOD

150
6 MONTHS
100

1 YEAR
AND OVER
3 MONTHS

IMPLICIT YIELD
6 - M O N T H COMMITMENTS

$ Millions

800

600
TOTAL BIDS RECEIVED

400

[TOTAL BIDS ACCEPTED
JUNE

AUG.

OCT.

1969




DEC.

FEB.

APR.

JUNE

1970

AUG.

OCT.

,

DEC.

TABLE 15: Private Housing Starts and Permits
STARTS

'

DATE

1968 - Dec.
1 9 6 9 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
. Dec.

UNADJUSTED
TYP E OF FINANCING
FHA VA
OTHER

BUILDING
• PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2

SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE

TOTAL

1,509

922

585

96.4

16.3

4.4

75.7

1,463

1,878
1,686
1,584
1,563
1,509
1,469
. 1,371
1,384
1,542
1,392
1,297
1,245

1,066
975
828
797
883
808
765
723
846
777
783
718

812
711
756
766
626
661
606
661
696
'615

101.5
90.0
131.9
159.0
155.5
147.3
125.2
124.9
129.3
123.4
94.6
80.5

14.2
13.2
18.9
23.0
21.1
21.5
20.8
22.4
18.3
25.1
"18.1
18.8

3.8
3,J>
3.9
4.4
4.3
4.6
4.7
4.2
4.8
5.0
3.9
4.2

83.5
73.5
109.1
131.6
130.1
121.2
99. 7
98.3
106.2
93.3
72.6
57.5

1,403
1,477
1,421
1,502
1,323
1,340
1,228
1,245
1,201
1,183
1,191
1,177

514
527

i' Total 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. 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. .
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.




PRIVATE HOUSING STARTS AND PERMITS
.

M o n t h l y , a n n u a l rates

SEASONALLY ADJUSTED

2.0

HOUSING STARTS

1.6

1.2
A BUILDING PERMITS
. (in issuing areas)

PER CENT OF UNADJUSTED TOTAL STARTS

MULTI-FAMILY

(2 or more)

GOVERNMENT UNDERWRITTEN
1964




1966

1968

1970

TABLE 16: Mortgage and Bond Yields
FHA.
MORTGAGES l \
' DATE
25-YEAR 30-YEAR

CONVENTIONAL
MORTGAGES
3

SPREAD BETWEEN YIELDS
ON CONV. &
FHA MORTGAGES

1

NEW
Aaa CORPORATE
BONDS
4

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
•AND
FHA MORTGAGES

1959-60 - High
1961-66 - Low
1966 - High
1967 - High
Low
1968 - High
Low

6.26
5.43
6.73
n.a.
n. a.
n. a.
n. a.

n.a.
5.44
6.81
6.81
6.29
7.52
6.78

6.30
5.80
6.70
6.70
6.40
7.40
6.75

.23
.25
.30
.11
-.12
.12
-.27

5.25
4.41
5.82
6.51
5.18
6.79
6.15

1.69
.77
1.16
1.28
.27
1.20
.26

1969 - Aug.
Sept.
Oct.
Nov.
Dec.

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

8JL6 ^
8.40
8.48
8.48
8.62

8.20
8.25
8.30
8.35
8.35

-.16
-.15
-.18
-. 13
-.27

7.65
7.98
7.89
8.32
8.75

.71
.42
.59
.16
-.13

1

Neither mortgage nor bond yields include allowance for- servicing costs which are
much higher for mortgages than for bonds. Generally, bonds pay interest semiannually; mortgages, monthly. Mortgage yields, if computed as equivalent to
a semi-annual interest investment, would be slightly higher than given in the
table.
,
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 officecities. 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
See note for Table 1.




MORTGAGE AND BOND YIELDS
Monthly

HOME MORTGAGES
CONVENTIONAL

Aaa CORPORATE BONDS:
NEW ISSUES

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

Milium i l l 11 m 1111111 100
1962




1964

1966

1968

1970

TABLE 17: Conventional Mortgage Terms

DATE

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

LOAN/
PRICE LOAN
RATIO AMT.
(PER ($000)
CENT)
4

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)

1968
Dec.

„ 7.09

0.89

1969
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov,
Dec.

7.16
7.26
7.32
7.47
7.50
7.62
7,76
7.86
7.89
7.98
7.97
8.07

0.84
0.81
0.93
0.96
0.88
0.84
. 0.92
0.86
0.92
0.89
0.96
1.06

7.23I 25.9

7.30
7.39
7.47
7.62
7.65
7.76
7.91
8.00
8.05
8.13
8.13
8.24

25.6
25.6
25.8
25.4
25.8
25.6
25.5
25.2
25.3
25.3
25.3
25.4

74.0

24.7

73.6
73.3
73.8
72.6
73.2
73.0
72.0
72.3
' 72.4
72.9
72.8
71.9

24.1
23.5
24.0
24.8
25.0
24.9
24.5
24.3
24.7
25.0
24.6
25.0

7.09 » 0.85

7.23

7.18
0.86 7,32
7.28
0.86 7.42
7.35 . 0.84 7.49
7.46
0.85 7.60
7.54
0.83 7.68
0.86 7.79
7.64
7.79
0.91 7.94
7.90
0.93 8.05
7.92
0.92 8.08
7.98
0.91 8.13
8.00
0.90 8.15
8.07
0.93 8.22

23.3

73.2

20.4

22.8
72.6
22.9
72.8
23.0
72.7
23.0
71.8
22.7
71.9
22.8
71.4
22.8
71.7
22.6
71.2
22.2
70.7
22.2
70.2
22.6 . 70.4
23.0
70.6

20.0
19.6
20.2
19.9
19.7
20.1
20.1
19.8
19.2
19.5
20.1
20.9

1

Compiled by Federal Home Loan Bank Board in cooperation with Federal Deposit Insurance
Corporation. Data are weighted averages based on probability sample survey of characteristics of. conventional first mortgages originated by major institutional lender
groups (including mortgage companies) for purchase of single family homes. Data exclude loans for refinancing, reconditioning or modernization; construction loans to
home-builders; and permanent loans which are coupled with construction loans to ownerbuilders. Related series on conventional mortgage rates only, based on unweighted
opinions of field-office directors of the Federal Housing Administration, are available
somewhat sooner than the results of the FHLBB-FDIC survey, and are included-in the case
of new home mortgage rates--in Table 16.

2

Fees arid 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

MATURITY
new

existing

LOAN/PRICE RATIO

new

existing
70

Thousands of dollars

LOAN AMOUNT

new

existing

1964




1966

1968

1970
* CHANGE IN SERIES