Full text of H.16 Capital Market Developments : February 24, 1969

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DECONTROLLED AFTER SIX MONTHS
Confidential (F.R.)

February 24, 1969

CAPITAL
MARKET
DEVELOPMENTS

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

C a p i t a l Market Y i e l d s

8-13

Capital Market Volume

14-17

Stock Market

18-33

Mortgage Market




TABLE 1: Yields, Volume and Reception
YIELDS
WEEK ENDING:
NEW ISSUE 1
- Jan.

1969 - Feb.

MOODY'S Aaa

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

3
10
17
24
31

6.90
6.93
6.92
6.92

6 . 55
6.58
6.59
6.59
6.59

0
283
177
393
96

7
14
20.
28 £ /

6.97
6.91
6.90
n. a.

6.63
.6.66
6.66
n. a.

172
340
150
175e/

WEEK ENDING:

- Jan.

1969 - Feb.

3
10
17
24
31

4.57
4.58
4.58
4.58
4.60

7
14
20
28%/

4.72
4.72
4.70

844
718
700
354
674

85
74
100 n.a.

689
504
545
n.a.

MUNICIPAL BOND MARKET
VOLUME 2

YIELDS
MOODY'S
Aaa

67
52
57
81

BOND BUYER
20 BOND INDEX
4.85
4.85
4.83
4.82
4.91
4.96
4.96
4.95
n. a.

GROSS
OFFERINGS

PER CENT
SOLD BY END
OF WEEK

BONDS SCHEDULED'
WITHIN 28 DAYS
698
836
825
721
630

194
304

81
65
70
66
51

200

69

720 .

77
62

645
510 -

14
385
371

r/71
2/337
2/362

1 Derived by adjusting to an Aap 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.
n. a.-- Not available.




TABLE 2: Details on Inventories

DATE
•
OFFERED

AMOUNT
(MIL. $)

2/11

50.0

CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK
ORIGINAL
RATING AND
YIELD CALL PROTECTION
ISSUER
COUPON

ESTIMATED PROPORTION SOLD
/• !

i DATE
OFFERED | RELEASED

Chesapeake & Potomac Telephone
Company

7

7.00

Aaa

5 yrs.

.

55%

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

AMOUNT

NONE

INVENTORIES 1
MUNICIPALS
BLUE LIST
|
IN SYNDICATE

DATE
1969 - Jan.
Feb.

24
31
7
14
20 £ /

528
569
553
r/500
451

176
274
196
r/151
150e

N.C. - No call protection, p Daily average of three days ended Wednesday.
others as of Friday; in millions of dollars.
e/ Estimated.




CORPORATES
IN SYNDICATE
150
70
60
30
23
1 Blue List is daily average;

BONDS IN SYNDICATE
Millions of dollars

i i—r—|—i—i—r—i—i—i—r
CORPORATE BONDS IN SYNDICATE

1—i—i—i—r—i—i—i—i

i

i

200
100

i .I III!
— i — i — i — i — i l l
i—i—f—r
MUNICIPAL* BONDS IN SYNDICATE

lL

i—i—i—i

_] L_—I
I L_
~T—i—i—i—[—i—r
300

200
100
_L
SEPT.

DEC.

'67




MAR.

JUN.

1968

SEPT.

DEC.

MAR.

JUN.

1969

i

i J
SEPT.

i

i
DEC.

TABLE 3: High Grade Bond Yields

NEW CORPORATE
ISSUES(ADJUSTED
TO Aaa BASIS")

DATE
1966 - High
Low
1967

High
Low

1968 - High
Low
1969 - Jan.
Feb.

p
1
2
3
,

MOODY'S SEASONED
CORPORATE
Aaa

U.S. GOVERNMENT
20-YEAR
CONSTANT
, MATURITIES 2

SEASONED
STATE AND LC^AL
GOVERNMENT
Aaa3

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)

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

6.24(2/29)

5.00(2/10)

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

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

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

6.53(12/27)
5.95(9/13)

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

4.57(12/26)

6.94
6.92
6.97
6.91
6.90

6.59
6.59
6.63 ,

5.96
6.05
6.13
6.03

4.58
4.60
4.72
4.72
4.70

24
31
7
14
20%/

6.66
6.66

6.11

3.80(8/8)

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 arid lows are for individual series and may be on different dates for different series.




HIGH GRADE BOND YIELDS

NEW CORPORATE Aaa

A

MOODY'S
CORPORATE Aaa

U.S. GOVT. 20-YR.
CONSTANT MATURITIES

MOODY'S MUNICIPAL Aaa

1965


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

1966

1967

1969

1969

TABLE 4: Long=term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
NEW CAPITAL
CORPORATE

PERIOD
' ' ,

1969p

January
February
March

v

l,800e/
l,600e/
l,800e/

1

1968p .

STATE AND LOCAL 2
1967

1,706
1,568
1,740

1,648
1,398
2,317

April
May
June

1,385
1,825
2,334

1,973
1,474
2,611

July
August
September

2,091
1,394
1,497

2,457
2,406
1,723

e/2,025
e/1,675
e/ 1,850

2,289
1,467
2,336

5,014
5,544
4,982
e/5 ,550

5,364
6,058
6,584
6,092

10,558
15,540.
ei/21,090

11,421
18,007
24,098

October
November
December
1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

1st half
Three quarters
Year

5,200e/

1969 p

.

l,200e/
875e/
, l,000e/

•

.

'

/'

" ..

1968r/

1967

1,138
1,156
1,394

1,482
1,196
1,438

1,314
1,140
1,396

1,111
1,229
1,497

1,466
.1,-688
1,435

943
858
1,300

2,227 —
997
1,112
3,075e/

974
1,400
1,182

3,698
3,850
4,589
. 4,336

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

8,925
12,127
2/16,463

7,956
11,087
14,643

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

Quarter
Quarter
Quarter
Quarter

Year
e
p
1
2
3

4,943
5,265
4,882

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 rounding components may not add.




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

QUARTER
OR
• MONTH

.
TOTAL

GROSS PROCEEDS FOR NEW CAPITAL
AND REFUNDING
COMMON
AND
MEMO:
BONDS
ISSUES INCLUDED 1
PUBLICLY PRIVATELY PFD.
MFG.
STOCK
PLACED
FOREIGN | CONVERTIBLE
OFFERED

1967 - III
IV.
1968 - I
II
III
IVJJ/

6,833
6,294
5,178
5,705
5,133
5,733

4,604
3,107
2,465
3,105
2,606
2,559

1,551
2,137
1,724
1,644
1,361
1,829

678
1,051
989
956
1,166
1,345

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

1,771
1,607
1,800
1,428
1,867
2,418
2,144
1,433
1,556
2,099
1,729
1,905
1,860

903
796
766
719
1,046
1,340
1,244
637
725
1,016
938
605
960

546
585
593
438
.521
685
528
400
433
574
355
900
500

322
226
441
371
300
385
372
396
398
509
436
400
400

234 *
93
313
172
124
• n.a.
16
61
236
31
89
52
47
49
28
24
49
n.a.
n. a.

1,632
1,327
584
758
1,037
n.a.

l

224
161
199
139
380
239
605
211
221
395
194
n.a.
n. a.

NET PROCEEDS
FOR NEW CAPITAL
PUBLIC
UTILITY

1

2

COMMUNICATIONS

OTHER
ISSUES

2,792
2,527
1,855
1,653
1,599
E,'1,560

1,219
1,255
1,394
1,201
1,143
e/1,190

595
269
411
529
483
e/240

1,976
2,040
1,356
2,159
1,758
e/2,435

537
556
761
353
550
750
818
A 349
432
9/575
e/485
e/500
e/ 400

417
546
431
178
549
474
236
438
469
e/550
1/390
e/250
e/ 575

186
147
78
189
103
237
.236
92
155
e/75
e?145
~e/20
e/ 150

566
321
469
663
622
874
801
515
442
e/700
1/655
<"1,080
~ e/ 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.Y
Quarterly supplements are available.




TABLE 6: Large Long-term Public Security Issues for New Capitai\
• .
(Other than U.S. Treasury)
\
February 3 through February 20., 1969.

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

COUPON
RATE OR
NET INTEREST COST

MOODY'S
RATING

OFFERING
YIELD

-

Corporate
Duplan Corporation
^Surveyor Fund Inc.
Kansas City Power & Light
Company
Duke Power Company
Philadelphia Electric Co.

Conv. sub . debs.
Com.istk.

15.0
29.2

1994

5.50

5.50

Ba

1st mtg. bds.
1st & ref. mtg.
bds.
Pfd. stk.

26.0

1999

7-1/8

7.07

Aaa

75.0
40.0

1999

7.00

7.06

Aaa

Chesapeake & Potomac Tel.
Co. (Wash.)
Debs.
50'.l3
Owens Corning Fibreglass
S.F. debs
30.0
Manufacturers Bank of
Detroit
Conv. cap . notes 15.0
^Northern States Power
Com. stk.
29.:2
Tesoro Petroleum
Debs.
25.i0
International Leisure Corp. Units
25. o
Forest Oil Corporation
Conv. debs.
25.0
Forest Oil Corporation
Com. stk.
16. 8
Pan American World Airways Conv. debs.
175. 0
Pillsbury Company
Conv. debs.
20. 0
Southern Company
Com. stk.
66. 0
Instrument Systems Corp.
Conv. sub. debs. 25. 0
State Street Bank &
Trust Company
Cap. notes.
20. 0
Del Monte Corporation
Conv. debs.
30. 0
Atlantic City Electric Co.,
New Jersey
Com stk.
18. 6




,
'

/
\

2009
1994

7.00
6-7/8;

7.06
6.92

Aaa

1994

5.00

5.00

N.R.

1989

5-1/4

5.25

1994

5-1/2

5.50

1989 ,
1989

5-1/4
4-3/4

5.25
4.75

1977

6

6.00

1994
1994

5.00
5-1/4

5.00
5.25

A

B
Ba
Baa

.

B
j
Ba

'

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

ISSUER

TYPE

AMOUNT
. (MILLIONS
OF
DOLLARS)

MATURITY

Feb. 3 through Feb. 20. 1969
COUPON
RATE OR
MOODY'S
OFFERNET INTERRATING
ING
EST COST
YIELD

State & local Government
State of Connecticut
G.O.
State of Vermont
G.O.
Atlantic Co. Improvement
Authority, New Jersey
Rev.-rent.
Kentucky Turnpike Auth.
Rev.
Kentucky Turnpike Auth.
Rev.
Tacoma, Washington
Rev.-rent.
Grand River Dam Auth.,0kla. Rev.
Grand River Dam Auth.,Okla. Rev.
State of Maine
Bonds
Milwaukee Co., Wis.
G• 0•
Puerto Rico Water Resources
Authority
Rev.-Ut.
Los Angeles Dept. of
Water and Power
Rev. -Ut.
Fairfax Co., Va.
G.O.
Genesee Co., Michigan
Bonds.




60.0
30.0

1970-89
1970-88

12.5
10.0
80.4
16.0
13.6
6.4
14.9
11.6

4.68
4.58

3.90-4.75
3.90-4.70

Aaa
Aaa

1971-98
1972-81
2008
4/
1972-20142008
1971-92
1970-99
1970-89

5.71
5.90
4.57
4.59

4.50-6.00
4.50-5.25
4.50-5.25
4.40-5.80
4.50-5.80
4.50-5.80
3.90-5.35
3.90-4.75

30.0

1971-2000

5.41

4.25-5.40

A

21.0
17.2
10.0

1970:99
1970-94
1969-93

5.04
5.16
5.04

4.00-5.20
4.20-5.75
3.90-5.10

Aa
Baa
Aa

Baa
Baa
N.R.
N.R.
Aaa
Aaa

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

ISSUER

TYPE2

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

COUPON
RATE OR •
NET INTEREST COST

OFFER- , MOODY'S
RATING
ING
YIELD

Other
Province of Ontario
Federal Home Loan Banks
Westcoast Production Co.,
Ltd.
Province of Nova Scotia

*
1
2
3

4

Debs.
Bonds.
Com. stk.
S.F. debs,

75.0
200.0

1999
1971

n.a.
n.a.

7.45
6.60

19.2
25.0

1994

7-5/8

5.67

Aa

Rights offering.
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; Rev.-S.T.,
revenue bonds secured by revenue from specific taxes only; Rev.-Rent., revenue
bonds secured solely by lease payments.
Bonds maturing in 2013-14 not reoffered.
-




TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury) 1 .
(continued)
As of February 20. 1969.
AMOUNT
APPROXIMATE DATE
(MILLIONS
ISSUER
OF
OF OFFERING
TYPE
DOLLARS)
Corporate
Talcott National Corp.
Conv. sub. debs
35.0
Castle & Cook
Conv. debs.
30.0
Continental Computer-Assoc. Conv. debs.
15.0
U.S. Financial
Conv. debs.
15.0
Bethlehem Steel Corporation Debs.
100.0
Gulf States Utilities
1st mtg. bds.
25.0
U.S. Shoe Corporation
Debs.
15.0 .
' Levin-Townsend Computer Cor& Conv. sub. debs.,
35.0 .
Sunshine Mining
Conv. sub. diebs.,
25.0
*Bank of Commonwealth, Detroit ; Pfd. stk. w/w.
30.0
*Texas Electric Svc. Co.
Bonds
15.0
Ohio Power Company
Debs.
15.0
Ohio Power Company
1st mtg. bds
70.0
Gulf Power Company
Bonds
15.0
*New York Telephone Co.
Bonds
150.0
Teledyne Inc.
Debs.
30.0
^Commonwealth Edison Co.
Bonds
50.0
*Cohsolidatred; Edison Co.
Bonds ^
80.0
F. & M . Schaefer Corp.
Com. stk.
39.0
G.A.C.
Conv. debs.
70.0
Public Svc. Elec. & Gas. Co. 1st & ref. mtg.
bds.
• 75.0
^Mountain States Tel. & Tel.
Company . '
Debs.
100.0
.
Alco Standard Corporation
Com. stk.
30.0
Alexander's Dept. Stores
Com. stk.
20.0
G.S.I. Computer
Com. stk. .
30.0
- Gamble-Skogmo, Inc.
Cap. notes
20.0
Beneficial Finance
Debs.
50.0
Integrated Container Svc.
Com. stk. 20.0
Polaroid Corporation
Com. stk.
136.0
Walt Disney Productions
Conv. debs.
50.0




February
February
February
February
February
February
February
February
March
March
March
March
March
March
March •
March
March
March
March
March
April

24
24
24
24
25
25
25
26
3
3
4
5
5
6
11
11
18
19

1 '

8
April
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite (rts.
Indefinite

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

ISSUER

TYPE

AMOUNT
. (MILLIONS
OF
DOLLARS)

1969.

APPROXIMATE DATE
OF OFFERING

State & local Government
^Wisconsin State Agencies
Building Corporation
Georgia Education Auth.
Local Public Authorities
Hawaii, State of
Los Angeles Airport Comm.
Cobb Co., Georgia
California,State of
Philadelphia Sch. Dist.,
Pennsylvania
Mass. Port. Authority
Arlington Co., Virginia
King Co., Washington
Genesee Co., Michigan
Richmond Metro. Auth.,
Virginia

Bonds
Rev. -Rent.
Bonds
Rev. -Rent.
Rev. -Rent.
Rev. -Ut.
Bonds

56.1
13.2
159.5
30.0
60.0
32.5
40.0

February
February
February
February
February
February
March

25
25
26
27

Bonds
Rev.-Rent.
G.O.
G.O.
Bonds

30.0
105.6
13.0
33.5
30.0

March
March
March
March
April

18

Bonds

100.0

Indefinite

5

10

Other
Neon Products of Canada,
Ltd.

*
1

Conv. debs.

20.0

March

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.
2
Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues of Federal AJgencies.
Postponements: Gulf States Utilities $25 million of original $50 million;
Puerto Rico Water Resources $30 million of original $60 million; Pennsylvania Higher
Education Facilities Authority $30 million, all owing to "market conditions".




TABLE 8: Stock Prices and Volume
TRADING V O L U M E 2

STOCK PRICES '
••s&p,
500

DATE

D.J. - IND.

AMEX4

NYSE

AMEX

1966 - High
Low

94.06(2/9) 995.15(2/9)
73.02(10/7) 774.32(10/7)

17.00(4/21)
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) 943.08(9/25)
80.38(1/31
786.41(1/3)

24.52(12/29)
13.78(1/27)

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

6.7(10/27)
2.1(1/6)

1968 - High
Low

. 108.37(11/29) 985.21(12/3)
87.72(3/5) 825.13(3/21)

33.25(12/20]
22.00(3/22)

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

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

1969 - Jan. 17
24
31
Feb.

M

102.03
102.38
103.01

935.54
938.59
946.05

31.98
32.60
32.66

11.7
11.8
11.9

103.53
103.61
99.79

947.85
951.95
916.65

32.60
32:56
30.94

12.8
11.8
11.2

6.2
6.7

8.0

6.6
r/5.9
5.9

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




STOCK PRICES AND TRADING VOLUME
AM EX

DJ,
(Ind.)

Weekly

SAP
(500)

"STOCK PRICES

27

AMEX PRICE LEVEL INDEX

24

S&P's 500

D J IND.

|-

T

AMEX TRADING VOLUME

r1"

"H"

-NYSE TRADING VOLUME

1965

1966




1968

1969

1040

104

980

98

800

80

TABLE 9: Stock Market Credit

CREDIT EXTENDED TO CUSTOMERS BY:
BROKERS 1 | BANKS 2 | TOTAL
END OF PERIOD

CUSTOMERS<
NET DEBIT
BALANCES

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

Outstanding:

1968 - Jan.
6,170
Feb.
6,150
Mar.
6,190
Apr.
6,430
May
6,640
June
6,690
July
6,500
Aug.
6,460
Sept.
6,390
1
Oct,
6,250
Nov.'
6,200 .
Dec.
r/6,200
1969 - Jan.2/
5,910

2,430
2,420
2,370
2,350
2,360
2,410
2^420
2,490
2,520
2,560
2,630
2,710
2,750

8,600
8,570
8,560
8,780
9,000
9,100
8,920
8,950
8,910
8,810
8,830
r/8,910
8,660

7,797
7,419
7,248
7,701
8,268
8,728
8,860
8,489
8,724
8,859
8,994
r/9,876
9,169 c

2,942
2,778
2,692
2,979
3,064
3,293
3,269
2,984
3,126
3,406
.

3,422
3,717
3,597

4,855
4,641
4,556
4,722
5,204
5,435
5,591
5,505
5,590
5,543
5,572
r/6,159
5,572

Change in:
Outstanding
1968 - Jan.
Feb.
Mar.
Apr.
May.
June
July
Aug.
Sept.
Oct.
Nov.
Dec. •
Jan.2/
1

2
3

'

-130
-20
40,
240
210
50
-190
-40
-70
-140
-50
r/--290

-30
-10
-50
-20
10
50
10
70
30
40
70
80
40

-160
-30—
-10 1
220
220
100 .
80
30
-40
100
20
r/80
' -250

151
378
-171
453
567
460
132
-371
235
135
135
r/7 82
-707

-179
-164
-86
287
85
229
-24
-285
142
280
16
295
-120

-328
-214
-85
166
482
231
156
—86
85
-47
29
r/587
-587

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. r/ Revised.




h

• • v '
;
'
'
TABLE 10: Savings Flows at IMonbank Depositary Intermediaries
,($ millions)
.
1
6c. LOAN ASSOCIATIONS
SAVINGS ,
TOTAL
MUTUAL'SAVINGS BANKS
NET
DEPOSITS
REGULAR DEPOSITS 3
NET
SHARE CAPITAL
NEW
ANNUAL
NEW
ANNUAL
ANNUAL
MONEY 2
GROWTH
M O N E Y 2 NETNET
" GROWTH
GROWTH
NET
1
1
RATE 1
FLOW
FLOW
RATE
RATE
FLOW

DATE

\
1966
1967
1968 £ /

2,591
5,079
4,158

1967 - Nov.
Dec.
1968 - Jan.

321
627
262

1?68 r Nov.
Dec.
1969 - Jan. P/

359
674
200

4.9
9.3
7.0
--; ' -——
---

NET
NEW
MONEY 2

Not Seasonally Adiusted
227
2,376
1,139

3,656
10,686
7,333

273
-17
162

582
1,612
-251

--

293
-26
100

648
1,579
-73

__

3.3
9.1
5.9

——
--

<- -

-552
6,136
2,676

6,247
15,765
11,941

3.8
9.2
6.3

-325
8,512
3,815

552
157
-270

873
239
11

__

825
147
108

618
r/ 178
rll4

1,007
2,253
127

--

911
r/152
--

-14

Seasonally Adjusted,
1968 - Sept.
Oct.
Nov.
Dec.])/

356
364
397
339

6.8 •
6.9
7.5
r/6.4

1969 - Jan.

199

3.7

\
2
1

3

p

j>/

-—

——
---

770
793
585
553

7,2
7.4
5.5
5.1

512

r/4.7

——

7.1
7.2

; --

1,126
1,157
881
888

' --

711

4.4

——
1- -

6.1

5.5

-

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 such as Christmas club and certain escrow
accounts, which represent a very small part of total deposits.
SOURCE: National Association of Mutual Savings Banks and Federal Home Loan Bank Board,
Preliminary, r/ Revised.




;

SAVINGS FLOWS (seasonally adjusted)
Monthly

Millions of dollars

1200
800
400

SAVINGS & LOANS

400

800
400
MUTUAL SAVINGS BANKS

400
1965

1966




1967

1968

1969

TABLE 11: Mortgage Commitments at Selected Thrift Institutions

DATE

TOTAL

OUTSTANDING COMMITMENTS
ALL
\
MUTUAL
SAVINGS
SAVINGS &
V
BANKS
LOAN
(N.Y. STATE)
ASSOCIATIONS

TOTAL

1

NET CHANGE
ALL
SAVINGS &
LOAN
ASSOCIATIONS

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

(Billions of Dollars, Seeisonally Adjusted) JL/

1967 -Dec.
1968-Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec. 2./

1

8.5
8.4
8.5
8.6
8.8
8.6
8.6
8.8
9.0
9.1
9.5
9.8
9.8

'

"

5.9
5.8
5.9
6.1
6.2
6.1
6.0
6.1
6.2
6.2
6.5
6.6
6.7

"

2.6
2.6
2.5
2.5
2.5
2.6
2.6
2.7
2.9
2.9
3.0
3.2
3.1 ,

-.04
-.05
.05
.18
.11
-.13
-.05
.19
.24
.11
• 35
.27
.03

. 03
--

.10
.16
.11
-.15
-.10
.11
.08
,07
.22
.10
.12

Based on data from Federal Home Loan Bank Board and Savings Bank Association
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.




-.07
-.05
-.05
.02
.0
.02
.06
.08
. 16
.04
.13
.17
-.10

MORTGAGE COMMITMENTS OUTSTANDING (saar)
Billions of dollars

Monthly

I

.

I

.1

I

—

T

10

T
TOTAL

r

S&L'S

MSB'S

-

1
1959




I

1 . 1
1961

1
1963

I
1965

1969

/

TABLE 12: Net Change in Mortgage Holdings 1

DATE

TOTAL
INCLUDING
FNMA

TOTAL

FINANCIAL INSTITUTIONS
SAVINGS
- MUTUAL
&
SAVINGS
COMMERCIAL
LOANS
BANKS
BANKS

1965 - I
II
III
IV

4,761
6,365
6,469
6,303

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

823
1,749
1,805
1,322

1966 - I
II
III
IV

5,413
5,671
3,953
3,088

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

975
1,656
1,300
774

1967 - I
II
III
^
IV

2,623
4,896
6,275
6,290

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

151
1,200
1,751
1,537

1,421
•1,540
1,788
1,969
2,227
2,101
1,819
1,950
1.953
2,308
2,081
n. a.

1,071
1,236
1,514
1,723
1
1,992
1,881
1,667
1,809
1,845
| 2,147
1,936_
n. a.

300
400
400
616
616
616
500
500
700
800
700
400

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

^

1

LIFE
INSURANCE
COMPANIES

FNMA

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

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

-52
-66
66
356 '

753
513
739
715

1,671
1,674
350
86

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

795
551
508
469

770
786
839
758

492
.2,147
2,585
2,364-

860
657
521
869

350
106
5.79
762

965
946
1,072
1,078

215
197
137
.
160
203
219
248
233
221 .
313
310
319

381
542
789
879
957
877
719
875
809
846
731
846

,

175
97
188
68
216
169
200
201
] 15
188
195
n. a.

350
304
274
. 246
235
220
152
141
158
161
145
172

.

1 Monthly data for commercial banks based on Federal Reserve estimates benchmarked
to Call Report data on real estate loans outstanding as available. Other data
derived from mortgage debt outstanding as reported separately by National Assn.
of Mutual Savings Banks, Federal Home Loan Bank Board, Institute of Life Insurance
and the Federal 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.




NET CHANGE IN MORTGAGE HOLDINGS
Monthly

Billions of dollars

3.0

TOTAL, INCL. FNMA

2.5

2.0

1.5

FINANCIAL INSTITUTIONS

1966




1967

1968

1.0

1969

QUARTER

TOTAL

TABLE 13: Net Increases in Mortgage Debt Outstanding 1
(Seasonally Adjusted Annual Rate)
MULTI-AND
1 - t o 4- MULTICOMMERCIAL
FAMILY
COMMERCIAL
FAMILY
RESIDENTIAL 2

1965 - I
II
III
IV

25.5
25.3
25.7
26.2

18;6
18.5
19.3
19,6

15;1
15 ;1
15.5
15,8

3.5
3.5
3.8
3.8

4.2
4; 5
4.4
4.6

1966 - I
I I
III .
IV

29.1
23.6
17/7
14,6

19.0
15.3
10.6
9,2

14.7
12.1
8.3
7.2

4.3
3.3
2.3
2,0

7.0

5.1
4.0

1967,- I
II
II
CV

16.2
20.3

9.9
13.7
19.1

6.8
10.5"
15.3
16.5

3.1
3.3
3.8
4.4

3.8
4.8
4.8
5.1

1968 - I
II
IL
IV

27.7
26.0
25.7
28a

2.0

6.3
5.3
5.5
n. a.

1

2
B./

28.0

20n9

,

18.2
18.5
18.0

16.3
14.6
14.6
n. a.

-

3.9
3.4
n.a.

6.1

8.0
8.1
8.3
7.9

FARM

2.2
2.1

2.2
2.4
2.4

11.7
9;4
7.7
5,6

2.2
2.1

7.3

1.8

8.0
8.8
8.8

-6.6
9.2
9.2
n. a.

1.7
1. 9
2.4

2.6

2.5
2.3
2.3
n.a.

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




NET INCREASES IN MORTGAGE DEBT OUTSTANDING
Quarterly

Billions of dollars, seasonally adjusted annual rate

TOTAL

24
TOTAL
RESIDENTIAL

/ 1-4 FAMILY

COMMERCIAL

MtiLTIFAMILY
1965




1967

1969
%

TABLE 14: FNMA Weekly "Auction" Results
COMMITMENTS
WEEK
ENDED,
1968 - Dec. 2

TOTAL
OFFERED

17..5
18,,4
15,,1
15.,3
20,.4

25.8
23.5
32.6
31.6
32.3

14.6
14.1
8.9
9.4
9.8

7.43
7.47
7.52
7.55
7.61

7.46
7.51
7.57
7.60
7.65

7.35
7.42
7.46
7.48
7.49

82.1

59.8
57.9
61,4
61.0

16,.9
. 8.,1
9,,8
8,,4

28.4
36.7
39.1
38.6

14.5
13.0
12.5

7^63
7.67
7.69

7.48
7.52
7.54

14.1

7.82

7.66
7.68
7.72
7.86

35.9
46.2 .
38.4

38.8
49.4
55.6

7.98
8.01
8.04

7.99
8.05
8.09

7.82
7.91
7.95

30

Jan. 6
13
21
27

127.5
124.3
232.9

Feb. 3
10
17
24

320.6
80.0
5. 3
285.7 (102.4^
6. 8
226.7- (100.9)
6,,9
(100.0)3/

Note:

y

57.9
56.1
56.6
56.3
62.4

119.9
105.1
93.7
123.3
104.4

v S

1969

TOTAL

IN $ MILLIONS
IMPLICIT YIELD2/ (per cent)
ACCEPTED
i909061-1/
6DAY
MONTH Year&ovi' DAY
MONTH.
YEAR & over

7.66

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

1

For "proposed construction" of new homes only.

2

Average secondary market yield after allowance for commitment fee and
required purchase and holding of FNMA stock, assuming prepayment in
15 years for 30-year Government-underwritten mortgages. Yields shown
are gross, before deduction of 50 basis point fee paid by investors to
servicers.

3

FNMA announced limit of accepted bids for next week's auction.




FNMA WEEKLY "AUCTION" RESULTS
$ Millions

120

AMOUNT OF ACCEPTED BIDS BY COMMITMENT PERIOD

100
80

\

6-MONTHS

40

1 YEAR
90 DAYS
IMPLICIT YIELD

8.0

6 - M O N T H COMMITMENTS

7.2

6.8
JUNE

AUGUST




OCTOBER

DECEMBER

FEBRUARY

APRIL

TABLE 15: Private housing starts and Permits
STARTS
UNADJUSTED
DATE

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

^

1969 1

2

Jan.

SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE

1,456
1,537
1,511
1.591
1.364
1.365
1,531
1,518
1.592
1,570

1,492

912
1,075
920
922
838
790
904
867
944
965
r/905
r/917

1,816

1,028

1,733

544
462
591
669
526
575
627
651
648
605
r/828
r/575
788

TYPE OF FINANCING
TOTAL

FHA | VA

80.5
13.9
84.6
17.0
126.6
19.6
162.0
22.6
140.9
20.5
137,9
19.8
139.8
18.8
136.6
20.9
134.3
18.6
140.8
21.4
17.5
r/127.1
r/ 95.5 r/16.3
98.7

3.4
4.1
4i5
5.4
5.5
5.0
4.9
4.8
4.6
5.3

I

OTHER

63.2
63.5
102.4
134.0
114.9
113.1
116.2

110.9
111.1

114.0

4.2 r/105.4
4.4 r/74.8

14.1 3.8

80.8

BUILDING
PERMITS.
(SEASONALLY
ADJUSTED
ANNUAL
RATE)2

1,148
1,394
1,416
1,340
1,280

1,281
1.289
1.290
1,393
1,378
1,425
r/1,463
1,352

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. 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 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 l%3f, are for approximately 12,000 and beginning January 1967 13,000, or
all known permit-issuing places. Unlike starts, seasonally adjusted building permits reflect ditect 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

Millions of units

SEASONALLY ADJUSTED DATA
2.0

1.6
HOUSING STARTS

1.2

BUILDING PERMITS
(in issuing areas)
t CHANGE IN SERIES

PER CENT OF UNADJUSTED TOTAL STARTS
MULTI-FAMILY

40

GOVERNMENT UNDERWRITTEN
1963




1965

1967

1969

29 ' 1

TABLE 16: Mortgage and Bond Yields' 1
FHA
MORTGAGES

2

DATE
25-YEAR 30-YEAR
1957 - High
1958 - Low
1969-60 - High

1961-66 - Low
1966 - High
1967 - High

Low

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

1968 - High
Low

1968 - Sept;
Oct.
Nov.
Dec.
1969 - Jan.
1

2

3

4
5

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

5.44
6.81
6.81
6.29
7.52
6.78

7.28
7.29
7.36
7.50
--

CONVENTIONAL
MORTGAGES
3

SPREAD BETWEEN YIELDS
ON CONV. &
FHA MORTGAGES 4

NEW
Aaa CORPORATE
BONDS
5

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES

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
4.41
5.82
6.51
5.18
6.79
6.15

1.58
.88
1.69
.77
1.16
1.28
.27
1.20
.26

7.30
7.25
7.30
7.40
7.55

. .02
-.04
-.06
-.10

6.27
6.47
6.61
6.79
6.92

1.01
.82
.75
.71

--

Neither mortgage nor bond yields take into account servicing costs which are
much higher for mortgages than bonds. Generally, bonds pay interest semi. annually; mortgages, monthly. Mortgage yields, if computed as equivalent to
a semi-annual interest investment, would be slightly higher than given in the
table.
,
Based on 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.
.
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. (Data prior to 1965 is based on a composite of issues with
and without call protection.) n.a. Not available.




MORTGAGE AND BOND YIELDS
Monthly

Percent

HOME MORTGAGES:
CONVENTIONAL

FHA

Aaa CORPORATE BONDS:
NEW ISSUES

1961




1963

1965

1967

1969

TABLE 17: Conventional Mortgage Terms

NEfo HOMES
CON- FEES &
TRACT CHARGES EFFEC- MATURITY
DATE

RATE
(PER
CENT)

(PER
TIVE
CENT) RATE

2

(YEARS)

3

LOAN/
PRICE
RATIO
(PER
CENT)

CON-

LOAN
AMT.

($000)

1

FEES &

EXISTI]W3 HOMES

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

LOAN
AMT. /

($000)

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

6.39
6.. 47
6.50
6.57
6.69
6.88
7704
7.10
7.10
7.09
7.07
7.09

0.86
0.94
0.88
0.88;
0.95
0.95
0.85
0.87
0.87 .
0.88
0.84
0.89 .

6.52
6.62
6.64
6.71
6.84
7.03
7.17
7.24
7.24
7.23
7.21
7.23

25.4
25.5
25.7
25.3
25.0
25.4
25.5
25.5
25.5
25.6
25.4
r/25.9

72.9
74.5
74.3
73.4
73.2
74.4
73.7
73.6
74.2
74.5
74.1
74.0

21,7
22.2
22.4
22.2
22.1
22.6
22.5
22.8
22.5
23.1
22.7
25.0

6.57
6.58
6.59
6.64
6.81
6.97
7.10
7.12
7.11
7.09
7.07
7.09

0.82
0.81
0.79
0.80
0.87
0.86
0.83
0.85
0.82
0.84
0.82
0.85

6.70
6.71
6.72
6.77
6.95
7.12
7.23
7.26
7.25
7.22
7.21
7.23

22.7
22.6
23.0
22.6
22.5
22.6
22.5
22.7
22.6
22.5
22.7
r/23.3

73.7
73.6
73.3
72.8
73.1
73.1
72.6
73.0
72.6
72.4
72.9
73.2

18.4
18.0
18.6
18.3
18.5
18.4
18.6
18.7
18.4
18.5
19.1
20.6

0.84

7.29

25.6

73.6

24.5

7.17

0.84

7.31

22.9

72.7

. 20.4

-1969
Jan.£/ 7.16

r
1

Revised.
p Preliminary
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--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

15LOAN/PRICE RATIO

NEW

EXISTING
70

65
1963




1965

1967

1969
* CHANGE IN SERIES