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DECOraOLLED AFTER SIX MONTHS

(?api 4 « i

CAPITAL
MARKET
DEVELOPMENTS

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




tnydjiJ-

INDEX
3-5

x

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

YIELDS
WEEK ENDING:
NEW ISSUE 1
1968 - Jan.

3
10
17
24
31

6.55
6.58
6.59
6.59
6.59

6.90
6.93
6.92
6.92

1969 - Feb.

0
283
177
393
96

——

67
r/52
57
t/81

172

844
718
700:
354

674

;

n.a.

MUNICIPAL BOND MARKET
VOLUME*
1
PER CENT
SOLD BY END
GROSS
BOND BUYER
OF WEEK
20 BOND INDEX OFFERINGS

YIELDS
WEEK ENDING:

MOODY'S

Aaa

1968 - Jan.

1969 - Feb.

3
10
17
24
31

4.57
4.58
4.58
4.58
4.60

?£/

4.85
4.85
4.83
4.82
4.91

14
385
371
194
jc/304

81
65
70
66
r/51

BONDS SCHEDULED
WITHIN 28 DAYS
698
836
825
721
630

2/298

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 (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.




.V,

TABLE 2: Details on Inventories
AMOUNT
(MIL. $)

DATE
OFFERED
.

1/30
1/28
1/21
1/14

OFFERED

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

20.0
13.0
85.0
60.0

DATE
| RELEASED

Puget Sound Pwr. & Lt.
Oklahoma Gas & Electric
Virginia Elec. & Pwr.
General Tele, of California

DATE '
1969 - Jan.

7-1/2
7-1/2
7-1/8
7-1/8

7.45
7.05
7.13
7.13

la
Bz
a
A;
A
A

5
5
5
5

yrs.
yrs.
yrs.
yrs.

.90%
35%
90%
35%

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

AMOUNT

1/30
1/29
1/29
1/29

1/28
1/23
1/21
1/14

,

EST-xrlAXED PROPORTION SOLD

3
10
17
24
3l£/

N.C. - No call protection.
 as of Friday;
others


13.0
75.0
40.0
25.0

• Gen. Tele, of Wisconsin
So. Calif. Edison
Public Svc. of Indiana
Public Svc. of Oklahoma

7-1/8
7-1/8
7-1/8
7-1/4

,15
7.
,06
7.
,04
7.
-20
7.

INVENTORIES 1
MUNICIPALS
BLUE LIST
|
IN SYNDICATE
541
526
r/533
r/528
561

129
190
207
176
250

+10
+ 7
+ 4
+ 6

Aa
Aa
Ad .
Aa

5 yrs.
5 yrs.
5 yrs.
,C.
N,

CORPORATES
IN SYNDICATE
1

p Daily average of three days ended Wednesday,
in millions of dollars.

0
100
64
150
70
1 Blue List is daily average;

25%
60%
25%
35%

BONDS IN SYNDICATE
Millions of dollars

:

CORPORATE BONDS IN SYNDICATE

200
100

i
i
— ~ — i — i — i — i — i — T
MUNICIPAL BONDS IN SYNDICATE

T

300

200
100

. SEPT.

DEC.

'67




"

JUN.

1968

SEPT,

DEC.

JUN.

1969

SEPT.

DEC.

DATE

TABLE 3: High Grade Bond Yields
/
U.S. GOVERNMENT
• 1
NEW CORPORATE
20-YEAR
'
MOODY'S SEASONED
CORPORATE
ISSUES(ADJUSTED
CONSTANT
2
Aaa 1
TO Aaa BASIS)
' MATURITIES

SEASONED
STATE AND LOCAL .
.
GOVERNMENT
3
Aaa

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)

1967 - High
Low

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

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

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

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

1968 - High
Low

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

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

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

4.57 (12/26)
3.80 (8/8)

6.94
6.93
6.94- .
6.92.

6.55
6.58
6.59
6.59
6.59/

5.96
6.01
5.97
5.96
6.05

4.57
4.58
4.58
4. 58
4.60

1969 - Jan.

3
10
17
"24
^31£/

p
1
2
3

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

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 dif. ferent series.




HIGH GRADE BOND YIELDS
Per cent

NEW CORPORATE Aaa

V

MOODY'S
^
CORPORATE Aaa

v

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

MOODY'S MUNICIPAL Aaa

1965




1966

1967

1968

1969

/

TABLE 4: Long:term Corporate and State and Local Government
Security Offerings and Placements
(In millions.of dollars)
NEW CAPITAL
CORPORATE 1

PERIOD
1969p

1967

1969p

1,706
1,568
1,740

1,648
1,398
2,317

l,200e/
1,000e/

April
May
June

1,385
1,825
2,334

1,973
1,474
2,611

July
August
September

2,091
1,394
1,497

October
November
December
1st Quarter
2nd Quarter
3rd.Quarter
4th Quarter

January
" February
March

1968p

STATE AND LOCAL 2

1,750e
l,000e .

1968Y/

1967
1,482
.1,196
1,438

1,314
1,140
1,396

1,111
1,229
1,497

2,457
2,406
1,723

1.466
1,688
1,435

-43
858
1,300

e/1,900
e/1,675
e/1,850

2,289
1,467
2,336

2,227
997
1,112

974
1,400
1,182

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

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

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

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

' 10,558
15,540
e/ 20,965

1st half
Three quarters
Year

1,138
1,156
1,394

11,421
18,007
24,098

8,925
12,127
£.'/16., 463

.

7,956
11,087
, 14,643

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

Quarter
Quarter
Quarter
Quarter

4,943
5,265
4,882

j

e
p
1
2
Y

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

1967 - III
' IV
1968 - I
II
III
. IV £ /

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

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

GROSS PROCEEDS FOR NEW CAPITAL
AND REFUNDING 1
COMMON
MEMO: )
AND
BONDS
PUBLICLY PRIVATELY V F p .
ISSUES INCLUDED
fSTOCK
FOREIGN | CONVERTIBLE
OFFERED
PLACED
234 '
1,632
678
4,604
1,551
93
1,327
1,051
3,107
2,137
313
584
989
2,465
1,724
172
758
956
3,105
1,644
124
1,037
2,606
1,166
1,361
n.a.
n.a.
2,559
1,829
1,345

2,385
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

1,087
903
796
766 .
719
1,046
1,340
1,244
637
—725
1,016
938
605

1,020
546
585
593
438
521
685
528
400
433
574
355
900

278
322
226
441
271
300
385
372
396
398
509
436
400

30
16
61
236
31
89
52
47
49
28
24
49
n.a.

608
224
161
199
139
380
239
605
» 211
221
395
194
n.a.

NET PROCEEDS
FOR NEW CAPITAL

MFG.

PUBLIC
UTILITY

1

COMMUNICATIONS
595
269
411
529
483
240

2,792
2,527
1,855
1,653
1,599
1,575

1,219
1,255
1,394
1,201
1,143
1,205

1,109
537
556
761
353
550
750
818
349
432
e/575
e/485
e/500

278 I 6 8
I
186
417
546
147
78
431
189
178
103
549
237
474
236
236
438
92
469
155
e/75
e/550
e/390 e?145 ,
e/20
e/250

2
OTHER
ISSUES
1,976
2,040
1,356
2,159
1,758
2,455
881
566
321
469
663
622
874
801
515
442
e/700
e/655
e/1,080

pi 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 coirpnercial and .'other;. SOURCE: Securities and Exchange Commission.
Quarterly supplements are available.




\

X,
TABLE b: Large Long-term Public Security Issue^fqr New Capital.
(Other than U.S., Treasury) v

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

COUPON
RATE OR
NET INTEREST COST

OFFERING
YIELD

MOODY'S
RATING

Corporate
Penria. Power & Light Co.
1st mtg. bds. 40.0
Northwestern Bell Telephone
Debs.
Company
75.0
Northern States Power
Pfd. stk.
25.0
Cleveland Electric Illuminating Company
1st mtg. bds. 50.0
Conv. sub .debs .16.5
Famous Artists Schools
1st mtg. bds. 25.0
Duquesne Light Company
Libby-McNeil & Libby
Conv. sub .debs .15.0
Panhandle Eastern Pipeline Debs.
30.0
General Telephone of Calif. Debs.
60.0
Public Service Co, of
, Indiana
1st mtg. bds. 40.0
Baystate Corporation
Conv. debs.
15.0
Illinois Power Company
Com.' stk.
19.0 .
Surveyor Fund, Inc.
Conv. debs.
20.0
Central Hudson Gas & Elec. 1st mtg. bds. 20.0
Virginia Electric & Power
Company
1st mtg. bds. 85.0
S.S.I. Computer Corp.
Debs.
15.0
Allegheny Power System
Com. s t k .
34.5
Purex Corporation
Conv. debs.
35.0
Public Service Co. of
Oklahoma
1st mtg. bds. 25.0
Trans World Airlines
]onv. debs.
150.0
Southern Calif. Edison Co. 1st mtg. bds. 75.0
D.P.A.
3r. sub. debs. 15.0
Puget Sound Power & Light
1st mtg. bds. 20.0
Dallas Power & Light
Pfd. stk.
20.0




1999

7

6.94

Aa

2008

7

6.95

Aaa

Aaa
B
Aaa
Ba
A
• A

1990
1988
1998
1989
1988
1999

7-1/8
5 '
7
5
7-1/4
• 7-1/8

7.00
5.00
6.96
5.00
7.26
7.12

1999
1993

7-1/8
5 .

7.04
5.00

1983
1999

5
7-1/8

1999
1989

7-1/8
6-3/4

7.05
6. 75

Aa

1994

4-7/8

4.88

Baa

1999
1994
1999
1984
1999

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

7.20
5.00
7.06
6.75
7.45

Aa
Ba
Aa
n. a.
Baa

•

5.00
7.12

Aa

Aa

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

ISSUER
State & local Government
State of New Jersey
New York State Dormitory
Authority
Springfield, Illinois
Los Angeles Convention and
Exhibition Center Auth.
Omaha, Neb., Public Power
District
Williamsport Area Jt. Sch.
Authority, Pennsylvania
State of Oregon
Vigo Co. Sch. Bldg. Auth.,
Indiana
New York City
Houston, Texas
Delaware River Joint Toll
Bridge Comm.
Fresno City, California
U.S.D.
New York City
New York City
State of Maryland
Puerto Rico
Salt River Proj. Agri.
\ Impr. & Pwr. Dist., Ariz
University of Texas
San Francisco, California
New York State
Pennsylvania, State of
Montgomery Co., Maryland
Port of Seattle, Wash.
Houston I.S.D., Texas
Buffalo, New York
FRASER
Broward Co., Fla.,S.T.D.#1

Digitized for


AMOUNT
(MILLIONS
OF
DOLLARS)

TYPE

MATURITY

COUPON
RATE OR
NET INTEREST COST

During January, 1969
OFFERING
YIELD

MOODY 1 S
RATING

G.O.

75.0

1973-99

4. 49

3.95-5.15

Aa

lev. -Rent.
Rev. -Ut.

40.7
16.0

1971-2000
1972-98

5. 64
5. 00

4.25-5.70
4.00-5.00

A. Aa

lev. -Rent.

20.5

1973-2003.

5, 71

4.40-5.70

A

lev. -Ut.

20.0

1972-99

5. 03 i

4.00-5.25

Aa

3.0.
5.0.

12.0
30.0

1970-89/06
1983-85

5. 70
4. 57

lev. -S.T.
5.0.
5.0.

13.5
40.4
28.6

1972-86.
1970-74
1970-89

,82
4.
5.
,70
4.
,73

lev. -Q.-Ut.

20.6

1970-84/91

,
n. a. 4.00-5.20/5.38

Baa

3.0.
5.0.
5.0.
5.0.
3.0.

16.2
61.5
38.5
55.8
50.0

1970-89
1970-99
1970-83
1972-84
1970-90

,65
4.
5,
,70
5.
,70
,33
4.
5.
,12

3.75-4.75
4.50-5.75
4.50-5.75
3.90-4.40
4.05-5.20

Aa
BaaBaaAaa
A-l

26.0
25.0
30.7
83.0
75.0
20.0
20.0
12.0
15.1
20.0

1971-99
1972-05
1970-89
1970-99
1971-98
1970-89
1972-99
1970-89
1969-82
1971-88

3.90-5.25
4.15-5.40
3.80-4.60
3.80-4.75
3.90-4.93
3.90-4.90
4.20-5.50
3.90-4.90
3.70-4.50
4.10-5.10

A
n. a.
Aa .
Aa
Aa
A
A
A
Aa
A
,

3.0.
lev. -Rent.
3.0.
3.0.
3.0.
5.0.
lev. -Rent.
5.0.
5.0.
3.0.

r

,85
4.
5 .35
,50
4,
. 4,
,57
4,
,94
4.
,79
5,
,32
•7°
4,
, a.
5.00

3.90-5.40/5.70
4.45-4.70
4.00-5.00
4.50-5.75
3.90-4.85

n.a
Aa
Aa
Baa-!
A-l

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

ISSUER
•

•

•

Other

TYPE
. •

'

1
I
1
1

AMOUNT
(MILLIONS
OF
DOLLARS)

j COUPON
RATE OR
MATURITY NET INTEREST COST

OFFERING
YIELD

MOODY'S
RATING

—/

Federal Land Banks

Bonds

33.0

1970

6.70

6.70

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.




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

SSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

Corporate
Kansas City Power and Light
1st mtg. bds.
26.0
Company
Duplan Corporation
Conv. sub. debs
15.0
Manufacturers Bank of Detroitjjkmv. notes
15.0
Pfd. stk.
40.0
Philadelphia Electric Co.
Conv. debs.
25.0
Forest Oil Corporation
Texas Gas Transmission
Debs.
50.0
Duke Power Company
1st mtg. bds.
75.0
Chesapeake & Potomac TetT^
50.0
Debs.
Co. (Wash.)
• International Leisure Corp. Units
25.0
^Continental Computer
Associates .
Conv. debs.
15.0
Owens Corning Fibreglass
Debs.
30.0
^Northern States Power
Com. stk.
29.2
Conv. sub. debs. , 25.0
,
Sunshine Mining
Pan American World Airways
Conv. debs.
175.0
" 25.0
Instrument Systems Corp.
Conv. sub. debs.
,
Southern Company
65.0
Com. stk.
*Neon Products of Canada Ltd. Conv; debs.
20.0
Pi lisbury Company
Conv. debs.
. 20.0
*State Street Bank & Trust
Company
Cap. notes
. 20.0
Conv. debs.
G.A.C.
70.0
*Del Monte Corporation
Conv. debs.
30.0
*Gulf States Utilities
50.0
1st mtg. bds
General Telephone of Mich.
Debs.
22.0
Alco Standard Corporation
30.0
Com. stk.
20.0
Alexanders Dept. Stores
Com. stk.
30.0
G.S.I. Computer
Com. stk.
Gamble-Skogrno, Inc.
Cap. notes
20.0
Philadelphia Electric
Pfd. stk.
40.0
.39.0
F. & M. Schaefer Corp.
Com. stk.
Tesoro Petroleum .
Debs.
15.0
15.0
U.S. Financial
Conv. debs.
20.0
Integrated Container Service Com. stk.
Beneficial Finance
Debs.
50.0
35.0
*Levin-Townsend Computer Cocp, Conv. sub. debs.




February
February
February
February
February
February
February

4
4
4
4
5
5
6

February . 10
February 10 .
February
February
February
February
February
February
February
February
February

11
11
11 (rts.
11
12
17
18
18
18

February 19
February 25
February 24
February 25
February
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite

TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
As of January 31, 1969.

ISSUER,

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

State & local Government
State o & Vermont
State of California
State of Connecticut
Tacoma, Washington
Anne Arundel Co., Maryland
Milwaukee Co., Wisconsin
Los Angeles Dept. of Water
and Power
Fairfax Co., Virginia
*Local Public Authorities
Los Angeles Airport Comm..
Cobb Co., Georgia
*Mass. Port Authority

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

30.0
97.9
60.0
16.0
12.0
11.6

February
February
February
February
February
February

.4
5
6
18
18
18

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

21.0
17.2
159.5
60.0
32.5
105.6

February
February
February
February
February
March

19
19
26

Debs.
S.F. debs.

75.0
25.0

February
February

3
20

Other
* Province of Ontario
* Province of Nova Scotia

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.
Postponed were New York City*s $30 million issue and Columbus & Southern Ohio
Electric f s $25.0 million issue.




14

TABLE 8: Stock Prices and Volume
STOCK PRICES 1
S&P
500 3

DATE

D.J. - IND.

/
. AMEX 4

TRADING1 VOLUME 2
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.

3
10
17
24
- 31p
/

103.99
100.93
102.03
102.38
1 0 3 . 0 1 — ..
..

p
1

951.89
937.22
935.54
938.59
946.05

32.91
31.52
31.98
32.60
32.66

11.9
13.4
11.7
11.8
11.9

6.8
6.6
6.2
r/6.7
7.9

Preliminary.
.
Figures, except highs and lows are Friday's only. Highs and lows are for the
year and are not necessarily for Friday's.
2 Averages of daily trading volume on the New York and American Stock Exchanges.
- Millions of shares.
3
1941-43 = 1 0
4 Based on actual dollar value, rather than a formula.




STOCK PRICES AND TRADING VOLUME
AM EX

Weekly

DJ.
(Ind.)

S&P
(500)

STOCK PR'CES

AMEX PRICE LEVEL INDEX

1040

980

98

920

92

860

86

800

80

740

S&P's 5 0 0

104

74

D J IND

AMEX TRADING VOLUME

10
i
l
l

Jlii I
I

ii
,.

!
.

0

- N Y S E TRADING VOLUME

20

I1
'
'

. ,
.

;

15

10

5

/ / . v W v / v
1965

y:

\
1966




1967

0
1968

f

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

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

Outstanding:

1967 - Dec.

6)300

2,460

8^760

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

.6,170
6,150
6,190
6,430
6,640
6,690
6,500
6,460
6,390
6,230
6,300

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

8,600
8,570 ,
8,560
8,780
9,000
9,100
8,920
8,950
8,910
8,790
8,930

Change in
Outstanding:
1967 - Dec.
1968 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov. £/
Dec.2/

7,948

2,763

5,183

7,797
7,419
7,248
7,701
8,268
8,728
8,860
8,489
8,724
8,859
8,994
9,757

2,942
2,778
2,692
2,979
3,064
3,293
3,269
2,984
3,126
3,406
3,422
3,717

4,855
4,641
4,556
4,722
5,204
5,435
5,591
5,505
5,590
5,543
5,572
6,040

250

20

270

748

265

485

-130
-20
40
240
210
50
-190
-40
-70
160
70
n.a.

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

-160
-30
-10
220
220
100
80
30
. -40
120
140

151
378
-171
453
567
460
132
-371
235
135
135
763

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

-328
-214
-85
166
482
231
156
-86
85
-47
29
468

1

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.
2
"Bank loans to others than brokers and dealers for purchasing or carrying securities other than U.S. governments."
3
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. Flows',at' Nonbank Depositary Intermediaries,
(S millions)

DATE

1966
1967
1968 £/
1967 - Oct.
Nov.
Dec.
1968 - Oct.
Nov.r/
Dec. ]>/
1968 - Aug.
Sept.
Oct.
Nov. r/
Dec. £/

1
2
3

p

MUTUAL SAVINGS BANKS .
NET
REGULAR DEPOSITS 3
NEW
. ANNUAL
.
MONEY 2
GROWTH,
NET
1
RATE ,
FLOW

2,591
5,079
4,158
210
321
627
202
359
.670
319
356
364
r/397
335

4.9
9.3
7.0
-——

-. -—
t

. 6.2
6.8
6.9
r/7.5
6.3

Not Seasonally Adjusted
,552
3,656
3.3
6,136
10,686
9.1
2,676
5.9
7,333

227
2,376
1,139

495
582
1,612
495
. 648
1,579.

94
273
-17
89
293
-30
—

——
-—

SAVINGS • LOAN ASSOCIATIONS
&
" NET
SHARE CAPITAL
ANNUAL
NEW
•net' '
MONEY 2
GROWTH
FLOW
RATE 1

•

644
770
793
585
553

--- •
--

--

454
552
157
446
618
118

*•'. TOTAL
DEPOSITS
i NET
NEW
ANNUAL "
•
NET
GROWTH
MONEY 2
RATE 1
FLOW

6,247
15,765
LI,941
705
873
239
697
1,007
2,249

Seasonally Adjusted
—
963
6.1
- - • 1,126
7.2
-1,157
7.4
5.5
981
• -888
5.1

3.8
9.2
6.3
-—
--

--

6.1
7.1
7.2
6.1
5.5

-325
8,512
3,815
548
825
147
535
911
-88
--

--

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 967= 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

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 x
MUTUAL
SAVINGS
SAVINGS &
BANKS
LOAN
(N.Y. STATE)
ASSOCIATIONS

TOTAL

1

•
NET CHANGE
\
ALL ,
"\ SAVINGS &,
\ . LOAN
ASSOCIATIONS

MUTUAL
SAVINGS
,
BANKS
(N.Y. STATE)

(Billions of Dollars, Seaisonally Adjusted) 1/
. '
. 1
1967-Dec.
1968-Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec. £/

1

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
ai
.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
Qf
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)
Monthly

Billions of dollars

I

!

,;

|

|

.|

|

10

TOTAL

S&L'S

MSB'S

1

J_
1959




1961

1963

I
1965

1969

TABLE 12: Itfet Change in Mortgage Holdings 1

DATE

TOTAL
INCLUDING
FNMA

TOTAL

FINANCIAL INSTITUTIONS
SAVINGS
MUTUAL
&
SAVINGS
COMMERCIAL
LOANS
BANKS
BANKS

LIFE
INSURANCE
COMPANIES

FNMA
-

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

965
946
1,072
1,078

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

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

-52
~66
66
356

1966 - I
II
- HI.
IV

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

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

975
1,656
1,300
774

753
513
739
715

1,671
1,674
350
86

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

795
551
508
469

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

770
786
839
758

492
2,147
2,585
2,364

860
657
521
869

350
106
579
762

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

1,421
1,540
1,788
1,969
2,227
2,101
1,819
1,950
1/953
2,308
2,081

1,071
! 1,236
1
i 1,514
1
1,723
1,992
. 1,881
j 1,667
1,809
| 1,845
2.147
1,936
n. a.

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
115
188
195
n. a.

350
304
274
246
235
220
152
141
1S3
161
145
172

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

.

'

.

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 Associ,atipn. 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

TOTAL, INCL. FNMA

2.5

2.0 ,

1.5

1.0

FINANCIAL INSTITUTIONS

1966




1967

1968

1969

QUARTER
1965

TOTAL

TABLE 13: Net Increases in Mortgage Debt Outstanding
(Seasonally Adjusted Annual Rate)
1- to 4- MULTIMULTI-AND
RESIDENTIAL 2 FAMILY
FAMILY COMMERCIAL
COMMERCIAL*

25.5
25.3
25.7

18.6

3.5
3.5
3.8
3.8

4.2
4.5
4.4
4.6

14.7

c 4.3
3.3
2.3

6.1

26.2

19.6

15:1
15.1
15.5
15.8

1966 - I
II
III
IV

29.1
23.617.7
14.6

19.0
15.3

12.1

9.2

8.3
7.2

1967 - I
II
II
:v

16.2
28l0

9.9
13.7
19.1
20o9

27.7

18.2

I
II
I'll
IV

1968 - I II
' II.
IV

20.3

18.5
19.3

10.6

26.0

18.5

25.7
284

n. a.

18.0

6.8
10.5
15.3
16.5
16.3
14.6
14.6
n. a.

7.0

2.0

5.1
4.0

3.1
3.3
3.8
4.4

3;8
4.8
4.8
5.1

2.0

6.3
5.3
5.5
n. a.

3.9
-3.4
n. a.

8.0

FARM

8.1

2.2
2.1

8.3
7.9

2.4

11.7
9.4
7.7
5.6

2.2
2.4

2.2

2.1
1.7

7.3

1.8

8.8

1.9
2.4

8.0

8.8

2.6

-6.6
9.2
9.2

2.5
2.3
2.3

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

Preliminary.




NET INCREASES IN MORTGAGE DEBT OUTSTANDING
Quarterly

Billions of dollars, seasonally adjusted annual rate

32

TOTAL

TOTAL
RESIDENTIAL

I 1 - 4 FAMILY

COMMERCIAL

MULTIFAMILY

1965




1967

1969

TABLE 14: FNMA Weekly "Auction". Results
.COMMITMENTS
TOTAL
TOTAL
OFFERED "

WEEK
ENDED

IMPLICIT YIELD2/ (per <
IN $ MILLIONS
ACCEPTED .
69061 -1 / 901MONTH Year&ov< >r DAY
MONTti.
YEAR & oDAY

- Dec. 2
9
. 16
23
30

119.9
105.1
93.7
123.3
104.4

57.9
56.1
56.6
56.3
62.4

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

1969 - Jan. 6
13
21
27

82.1
127.5
124.3
232.9

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
14.1

7. 63
7.67
7.69
7.82

Feb. 3

7.46
7.51
7.57
7.60
x \ 7.65
'7.66
7.68
7-72
7.86

7.35
7.42
7.46
7.48
7.49
7 = 48
7.52
7.54
7.66

(75.0)-/
1 .
/ '
.

1
Note:
U n d e r the F N M A a u c t i o n s y s t e m , a p p r o v e d s e l l e r s bid for a
p r e d e t e r m i n e d v o l u m e of F N M A forward p u r c h a s e c o m m i t m e n t s .
These commitments,
awarded to those s e l l e r s w h o s e b i d s a r e a c c e p t e d , a u t h o r i z e tiie s e l l e r to
d e l i v e r G o v e r n m e n t - u n d e r w r i t t e n h o m e m o r t g a g e s to F N M A w i t h i n a s p e c i f i e d
period o f time.
F i n a l d e l i v e r y o f the m o r t g a g e is a t the o p t i o n o f the s e l l e r .

1

F o r "proposed c o n s t r u c t i o n " o f new h o m e s o n l y .

Average secondary market yield after allowance for commitment fee and
required purchase and holding 9f FNMA stock, assuming prepayment of
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.




I!

2 7

FNMA WEEKLY "AUCTION" RESULTS
$ Millions
120
A M O U N T OF ACCEPTED B I D S BY C O M M I T M E N T PERIOD

100
80

\

6-MONTHS

x

y v

20

1 YEAR
9 0 DAYS

IMPLICIT YIELD
6 - M O N T H COMMITMENTS

8.0

7.6

7.2

6.8
JUNE

AUGUST




1968

OCTOBER

DECEMBER

FEBRUARY
1969

APRIL

5

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

TOTAL

1,250

797

453

80.1

1,456
Feb.
1,537
1,511
Mar.
1,591
• Apr.
May
1,364
1,365
June
July ' 1,531
Aug.
1,5-18
Sept. 1,592
Oct.
1,570
Nov.
1,717
1
Dec.
1,454

912
1,075
920
922
838
790
904
867
944
965
897
891

544
462
591
669
526
575
627
651
648
605
820
563

80.5
84.6
126.6
162.0
140.9
137.9
139.8
136.6
134.3
140.8
125.7^
93.0

' DATE

1967 - D e c .
1968 - Jan.

1

2

UNADJUSTED .
TYP E OF FINANCING
FHA VA
. OTHER

3.6

60.8

13.9 3.4
17.0 4.1
19.6 .
4.5
22.6 5.4
20.5 5.5
19.8 5.0
18.8 4.9
20.9 4.8
18.6 4.6
21.4 5.3
17.5 4.2
16.4 4.4

63.2
63.5
102.4
134.0
114.9
113.1
116.2
110.9
111.1
114.0
104.0
72.2

15.7

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2
1,368
1,148
1,394
1,416
1,340
1,280
1,281
1,289
1,290
1,393
1,378
1,425
1,400 ,

Tvral. 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 shafted 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 1963, are for approximately 12,000 and beginning January 1967 13,000, or all known permit-issuing places. Unlike starts, seasonally adjusted building permits reflect direct adjustment for differences in the number of working days per
month, as well as other differences in timing and coverage.
r

Revised.

p

Preliminary.




•

PRIVATE HOUSING STARTS AND PERMITS
Monthly, annual rates

-

o

Millions of units

SEASONALLY ADJUSTED DATA
2.0

1.6
HOUSING STARTS

1.2

BUILDING PERMITS
(in issuing areas)
f CHANGE IN SERIES

PER CENT OF UNADJUSTED TOTAL STARTS
MULTI-FAMILY

GOVERNMENT UNDERWRITTEN
1963




1965

1967

1969

TABLE 16: Mortgage and Bond Yields
FHA
MORTGAGES

2

DATE
25 -YEAR 30-YEAR
1957 - High
-1958. - Low
1959--60 - High
1961-66 - Low
1966 - High
1967 - High
Low
1968 - H i g h .
Low

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

5 .63
5 .35
6 .24
5,
.43
6,
.73

CONVENTIONAL
MORTGAGES
3

.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

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

7.35
7.28
7.29
7.36
7.50

7.30
7.30
7.25
7.30
7.40

SPREAD BETWEEN YIELDS
ON C0NV. &
. FHA MORTGAGES 4

.

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

1

NEW
Aaa CORPORATE
BONDS
5
4.94
3.65
5.25
4.41
5.82
r/6.51
r/5.18
r/6.79
r/6.15

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES
1.58
.88
1.69
.77
1.16
r/1.28
r/ .27
r/1.2.0
r/ .26

-.05
r/1.20
r/6./15
.02
r/6.27
r/1.01
r/ .82
r/6.47
-.04
r/6.61
r/ .75
-.06
r/6.79
r / .71
-.10
l Neither mortgage nor bond yields take into account servicing costs"which are
much higher for mortgages than bonds. Generally, bonds pay interest semiannually; mortgages, monthly. Mortgage, yields, if computed as equivalent to
a semi-annual interest investment, would be slightly higher than given in the
table.
2 . Based on FHA-field-office opinions about average bid prices in the private
secondary market for new-home mortgages for immediate delivery. Separate
data available for 25-year and--beginning July .1961 —30-year mortgages with
minimum downpayments, weighted by probable volume of transactions. Yields
computed by FHA, assuming prepayment period of 12 years for 25-year mortgages
and 15 years for 30-year mortgages. Over the. period for which they can be
compared, the movement of the two mortgage yield series has been similar.
Dashed lines indicate periods of adjustment to changes in contractual interest
rates.
,
3 Based on FHA-field-office opinion on typical interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring, office
cities. Beginning with April 1960, rate relates only to new-home mortgages;
prior "to that date, rate related to both new as well as existing-home mortgages. Dashed line indicates this change in the series.
4
FHA-mortgage yield data are for 25-year mortgages through June 1961; 30-year
mortgages thereafter.
5
See note for Table 1. (Data prior to 1965 is based on a composite of issues
with and without call protection.)
n.a. Not available.




M O R T G A G E A N D B O N D YIELDS

Percent

Monthly

TTTTTT

H O M E MORTGAGES:

A a a C O R P O R A T E BONDS:

1961




1963

1965

1967

1969

TABLE 17: Conventional Mortgage Terms
NEW HOMES
CONFEES &
T R A C T CHARGES EFFEC- MATURITY
DATE ' RATE - (PER
(YEARS)
TIVE
(PER
CENT). RATE
CENT)
3
2

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

1

EXISTING HOMES
CONFEES &
LOAN/
T R A C T CHARGES EFFEC- M A T U - PRICE
(PER
RATE
TIVE
RITY
RATIO
(PER
C E N T ) RATE
(YEARS) (PER
CENT)
CENT)
2
3

LOAN
AMT.
($000:

1967
Dec.
1968

. 6.41

0.84

6.54

25.4

6.52
6.62
6.64
6.71
6.84
7.03
7.17
0.87 - 7.24
0.87
7.24
.0.88
7.23
0.84
7.21
/.23
0.89

25.4
25.5
25.7
25.3
25.0
'Jr,. 4
25.5
25.5
25.5
25.6
25.4
26.0

11.1

21.5

6.51

72.9

21.7

74.5
74.3
73.4
73.2
74.4
73.7

22.2

6.57
6.58

0.83

6.64

23.1

73.1

18.4

22.7
22.6
23.0

73.7
73.6
73.3
72.8
73.1
73.1
72.6
73.0
72.6

7.07

0.82 - 6.70
0.81
6.71
6.72
0.79
0.-80
6.77
0.87
6.95
0.86
7.12
0.83
7.23
7.26
0.85
0,82
7.25
0.84
7.22
7.21
0.82

18.4
18 i0
18.-6
18.3
18.5
18.4
18.6
.18.7
18.4
18.5
19.1

7.09

0.85

-

6.39
Feb;.
6.47
M a r v . 6.50
Apr c
6.57
May
6.69
June
6.88
July
7.04
Aug,
•7.10
Sept.
7.10
Oct".
7 c 09
Nov.r/ 7.07
Dec.2/ 7.09

0.86
0.94
0c 88
0.88
0.95
0.95
0.85

73.6
74.2
74.5
?4„ 1
7,4.0

22.4

22.2
22.1
22.6
22.5
22.8
22.5
. 23. 1
22.7
25.0

6.59
6.64
6.81

6.97
7.10
7.12
7.11
7.09

7.23

22.6
22.5
22.6
22.5
22.7

22.6

22.5 • 72.4

22.7
23.4

72.9
73.2

r
.
1

Revised.
p Preliminary.
Compiled by Kedeia I 'ionic Loan Bank Boat d in uooperation with Federal Deposit Insurance
Corporation.
Data are w e i g h t e d 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 exh i b i t.--permanent loans which are ooupled with construction
loans to owner-builders.
D a t a prior to 1965 on a comparable basis with the new series
are pending.
Related s c r i e s on conventions! mortgage rates only, based on unweighted
opinion's of r e g i o n a l - o i f i c e 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 & chavu.es amortized over a 1-0 .year period in addition to the contract
interest rate.
'




:

20.6 '

33

CONVENTIONAL MORTGAGE TERMS
Monthly

30

MATURITY
NEW

EXISTING

80

LOAN/PRICE RATIO

NEW

EXISTING
70

1963




1965

1969

1967

* CHANGE IN SERIES

1


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102