Full text of H.16 Capital Market Developments : February 9, 1970
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f-t u 1 1
u
DECOOTBOLLED AFTER SIX MONTHS
k-5.p;cConf'.#ntial (F.R.)
February 9,1970
(WW irnxbt
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
Capital Market Y i e l d s
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 '
Aaa
WEEK ENDING:
1970 - Jan.
2
9
16
23
29
Feb.
--
6
132/
WEEK ENDING:
CORPORATE BOND MARKET
VOLUME 2
PER CENT
GROSS
SOLD BY END
BONDS SCHEDULED
OFFERINGS
OF WEEK
WITHIN 28 DAYS
8.48
8.41
8.32
8.60
7.90
7.91
7.92
7.90
7.91
0
454
384
557
153
8.63
n.a.
7.97
n.a.
206
200e
YIELDS
MOODY'S
BOND BUYER .
SEASONED 20
SEASONED
Aaa
BOND INDEX
1970 - Jan.
2
9
16 ;
23|
29,
6.52
6.41
6.36
6.34
6.39
Feb.
6
13£f'
6.28
n. a.
:
*
"
96
79
87
80
100
:
702
905
698
786
516
?
842
n.a.
MUNICIPAL BOND MARKET
VOLUME2
PER CENT
1
GROSS
SOLD BY END
1 BONDS SCHEDULED
OF WEEK
| WITHIN 28 DAYS
OFFERINGS
6. 79 .
6.61
6.53
6.67
6.78
52
180
303
518
286.
87
86
76
76
62
602
743
994
643
628
6. 54
337
130e
74
n. a.
7/#0
1 D e r i v e d by a d j u s t i n g to a A a a ba'sis, n e w issues of p u b l i c l y - o f f e r e d c o r p o r a t e b o n d s
w i t h call p r o t e c t i o n , rated A , A a , o r A a a by M o o d y 1 s I n v e s t o r s S e r v i c e (except s e r i a l
and c o n v e r t i b l e i s s u e s , o f f e r i n g s of n a t u r a l gas p i p e l i n e and foreign c o m p a n i e s , and
. b o n d s g u a r a n t e e d by the F e d e r a l G o v e r n m e n t . )
2 Millions-of
Note:
Sue
dollars
footnotes
unless otherwise
to T a b l e
3
indicated.
-
TABLE 2: Details on Inventories
CORPORATE BONDS IN SYNDICATE END- OF LATEST WEEK
[ORIGINAL" RATING .AND
T —
.|oi
I COUPON I YLTYLD [CALL PROTECTION
AMOUNT
(MIL. $)
DATE
OFFERED
ESTIMATED PROPORTION SOLD
NONE
DATE
OFFERED | RELEXSED
1/26
2/2
• r
Feb.
15.0
Central Louisiana Power
9.50
9.00
+ 26
A
5 yrs.
50%
•
DATE
1970 - Jan.
CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK
ORIGINAL INCREASE RATING AND ESTIMATED PROAMOUNT
ISSUER
COUPON
IN YIELD CALL PROT. PORTION RELEASED,
YIELD
9
16
23
29
6j>/
INVENTORIES 1
MUNICIPALS
BLUE LIST
|
IN SYNDICATE
1
|
281
270
. 364
r/434
30
77
149
208
1 •
| •
|
j
386
160
I
CORPORATES
IN SYNDICATE
16
82
89
31
I
0
N'.C. - No call protection.
1
All figures in millions of dollars. 111 u'u List is daily average for v w k ended .Friday, except for latest week
which is daily average of three days ended Wednesday. Al'l other] figures are as of Friday.
BONDS IN SYNDICATE
Friday figures'-
Millions of dollars
CORPORATE BONDS IN SYNDICATE
200
100
! MUNICIPAL BONDS IN SYNDICATE
300
200
100
SEPT.
DEC.
'68
SEPT.
1969
\
1970
I
' ,.
TABLE3: High Grade Bond Yields
NEW '
CORPORATE
Aaa 1
DATE
•
MOODY'S SEASONED
CORPORATE
Aaa 2
U.S. GOVERNMENT
20-YEAR
. CONSTANT
MATURITIES 3 •
BONb
BUYER'S
SEASONED
MUNICIPALS 4
1967 - High
Low
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
Low
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
Low
8.85(1/25)
6.90(2/21)
7.84(12/26)
6.55(1/3)
6.97(12/26)
5.96(1/24)
6.90(12/18)
4.82(1/28)
7.90
7.91
7.92
7.90
7.91
7.00
6,92
6:91
6.92
6.94
6.79
6.61
6.53
6.67
6.78
1970 - Jan,
»
1
2
3
4
2
9
16
23
30
--
8.48
8.41
8.32
8.60
Feb.
6p/
8.63**
6.85
7.97
6. 54
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.
Weekly average of daily figures,
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.
Ntite--Highs and lows a r e for i n d i v i d u a l
for d i f f e r e n t s e r i e s .
s e r i e s and may, be on d i f C e r e n t
dates
HIGH GRADE BOND YIELDS
Per cent
NEW CORPORATE Aaa
U S. GOVT. 20-YR
CONSTANT MATURITIES
BOND BUYER MUNICIPAL
1966
1967
1968
1969
1970
TABLE 4: Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
GROSS PROCEEDS
CORPORATE
PERIOD
1970
2,600e
2,400e
2,800e
January
February
March
« 1969
1
1
1,771
1,608
1,799"
2 ,748
2 ,076
2 ,530
1,428
1,866
2,411
July
August
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
• April
May
June
1st
2nd
3rd
4th
Quarter
Quarter
Quarter
Quarter
7Y800e
1st half
Three quarters
Year
i
1968
2 ,075
2 ,045
2 ,098
STATE AND LOCAL 2
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
1970 ;
l»300e
l,000e
l,000e
.
i
j
3,300e
i
!
Excluding finance companies 3 '{
1st-Quarter
2nd Quarter
3rd Quarter
4th Quarter
Year
1
2
3-
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 exclud ing offerings of sales and consumer finance
companies.
T A B L E 5: New Corporate Security Issues, Type of Issue and Issuer
(In m i l l i o n s of dollars)
GROSS PROCEEDS BY
QUARTER
OR
MONTH
TOTAL
TYPE OF ISSUE
COMMON
AND
BONDS
PUBLICLY
PRIVATELY
PFD.
STOCK
OFFERED J PLACED
1 9 6 8 - 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
1969 - Jan.
Feb.
Mar.
Apr.
May
June
* July
Aug.
Sept.
Oct.
Nov.
Dec. e/
1970 - Jan. e/
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
636
395
509
460
807
755
649
510
514,
609
259
479
351
500
800
500
830
694
744
589
482
726
643
1
1,268
871
1,272
1,279
685
1,222
965
1,060
1,340
1,550
,000
800
550
GROSS P R O C E E D S BY
T Y P E OF ISSUER
MEMO:
ISSUES I N C L U D E D
FOREIGN
CONVERTIBLE
113
215
227
289
n. a.
MFC.'
PUBLIC
UTILITY
Securities and Exchange C o m m i s s i o n .
CATIONS
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
103
74
38
376
578
401
403
513
491
186
56
231
1,161
972
62
28
137
132
122
35
59
n. a.
n. a.
430
463
233
214
167
369
105
513
569
691
875
362
625270
750
800
627
315
404
784
392
702
493
507
544
745
620
500
272
120
190
260
1,405
915
946
826
433
984
826
1,000
1,380
900
650
125
925
110
300
330
O t h e r issuers are extractive, railroad and other t r a n s p o r t a t i o n , real estate
and finance, and c o m m e r c i a l and other.
Source:
able.
COMMUNI-
Q u a r t e r l y s u p p l e m e n t s are avail-
44
197
191
286
126
860
TABLE 6: Large Long-term Public Security Issues for New Capital
(Other than U.S. Treasury) 1
,
AMOUNT
(MILLIONS
...
ISSUER
TYPE y
: OF
DOLLARS)
Corporate
Philadelphia Electric Co.
Orange & Rockland Utilities
Company
Ashland Oil and Refinancing
Company
February 1 through February 9, 1970.
i.OllPON
OFI'l-.H- MOOI'Y '
HAT '. OR
IM.
i Nt;
MATURITY'' M'.i 1 . l'l'.RY1 KIT)
1 ST 'COST
/
\<j\ \
1st & re f.
80.0
1995
9.00
8.78
Aaa
1st mtg.
20.0
2000
9.25
9.25
A
Debs.
75.0
2000
8.80
8.80
A
T A B L E 6:
Large Lone) term Public Security Issues for New C a p i t a l (contimn rt)
(Other than U.S. T r e a s u r y ) 1
• COUPON
AMOUNT
(MILLIONS
ISSUER
TYPE
2
OF
MATURITY
DOLLARS)
State &
• 11
.
'
R A T E OR
• MTKRNET INTERI;.(
EST COST
| VILLI)
MOODY'S
RATING
local G o v e r n m e n t
Connecticut, State of
G.O.
Philadelphia, Pennsylvania G.O.
New York, State
G.O.
Minneapolis, Minnesota
G.O.
75.0
63.7
1971
1971-2000
63.0
10.7
1971-2000
1971-90
5.93
4.90-6.15
7.43,7.89,7.76 6.00-7.75
5.91
5.19,6.00
5.00-6.20
5.00-6.30
Other
NONE
*
1
2
3
R i g h t s of E a r i n g .
I n c l u d e s c o r p o r a t e and o t h e r s e c u r i t y o f f e r i n g s of $ 1 5 m i l l i o n
S t a t e and local s e c u r i t y o f f e r i n g s of $ 1 0 m i l l i o n a n d ' o v e r .
anil o v e r ;
In
genrral
c a s e of S t a t e and
local g o v e r n m e n t
securities, G.O.
denotes
obligation;
Rev.-lit., r e v e n u e o b l i g a t i o n s secured o n l y by i n c o m e from p u b l i c u t i l i t i e s ;
R e v . -Q. -lit. , r e v e n u e b o n d s s e c u r e d o n l y by income from q u a s i - u t i I i ties'; Rev.-8.T..,
r e v e n u e b o n d s s e c u r e d by r e v e n u e from s p e c i f i c t a x e s o n l y ; R e v . - R e n t . , r e v e n u e
b o n d s s e c u r e d s o l e l y by lease p a y m e n t s .
I n c l u d e s foreign g o v e r n m e n t and I n t e r n a t i o n a l B a n k for R e c o n s t r u c t i o n and
D e v e l o p m e n t issues and n o n - q u a r a n t e e d i s s u e s b y F e d e r a l A g e n c i e s .
Aaa
Baa-1
Aa
Aaa
TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury)1
As of February 6, 1970.
ISSUER"
TYPE
AMOUNT
(MILLIONS
OF
APPROXIMATE DATE
OF. O F F E R I N G
DOLLARS)
Corporate
Buiova Watch Company
Data Products Corporation
Texas Pyr. & Light Co.
General American Transp.
Corporation
Guardian Mtg. Investors
San Diego Gas & Elec.
Kayser-Roth Corporation
Hyatt Corporation
Continental Mtg. Investors
Michigan Bell Telephone Co
*Textron Inc.
*Gould Inc.
^Potomac Elec. & Pwr. Co.
Gulf States Utilities
University Computing Co.
*Duke Power
Lincoln First Banks, Inc.
Northern Natural Gas Co.
General Telephone of
Florida
*Itel Corporation
Kansas Gas & Elec. Co.
Pacific Gas & Elec. Co.
Chrysler Corporation
C&P Telephone of Va.
^Atlantic City Elec. Co.
^General Telephone Co. of
Southwest
~
*Public Service Elec. & Gas
Company
Gilbert Flexi-Van Corps.
Conv. debs.
Conv. debs.
1st mtg.
20.9
15.0
30.0
Equip, tr. -ctfs.
Conv. debs.
1st mtg.
Conv. debs.
Conv. debs.
Conv. debs.
Debs.
Notes
S.F. debs.
1st mtg.
1st mtg.
Conv. debs.
1st mtg. & ref.
Conv.debs.
S.F. debs.
50.0
15.0
40.0
20.0
20.0
100.0
150.0
50.0
25.0 .
35.0
30.0
60.0
75.0
25.0
50.0
1st mtg.
Conv. debs.
1st mtg.
1st mtg.
Debs.
Debs.
1st mtg.
40.0
21.0
40.0
75.0
150.0
75.0
50.0
Bonds
1st mtg.
Conv. debs.
26.0
100.0
15.0
February
February
February
9(rts
9
9
February 10
February 10
February 10
February 11
February 11
February 11
February .17
February 17
February 17
February 18
February 19
February 19
February 25
February 25
February 25
February
February
March
March
March
March
' March
March
26
26
3
4
9
10
11
18
March
18
Indefinite
TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
• (Other than U.S. Treasury)1
(continued)
ISSUER
TYPE
AMOUNT
. (MILLIONS
OF
APPROXIMATE DATE
OF OFFERING
DOLLARS)
State & local Government
Los Angeles DEWAPS
Rev.
Minneapolis-St. Paul Airports Commission
Bonds
Bergen Co. Swr. Auth.,
New Jersey
Rev.
Chicago City Jr. Coll. Dist
#508, Illinois
G.O.
Hawaii, State of
Rev.
Forth Worth, Texas
G.O. & Rev.
Minnesota, State of
G.O.
*Wyandotte Bldg. Auth., Mich. Rev.
Wayne Co., Michigan
G.O.
Pennsylvania, State of
G.O.
Ohio, State of
G.O.
Wisconsin, State of
G.O.
Rutgers University, N.J.
Rev.
*Broward Co. STDS # 1, Fla. G.O.
Lorain City Sch. Dist. #246,
Ohio
G.O.
Key West, Florida
Rev.
Cleveland, Ohio
G.O.,
^Maryland, State of
G.O.
Alaska, State of
G.O.
Virgin Island Wtr. & Pwr.
Authority
Rev.
*Newark, New .Jersey
G.O.
Pennsylvania State Public
School Building, Auth.
Rev.
24.0
February
9
20.0
February
11
20.7
February
16
15.0
20.0
12.6
80.0
18.0
26.0
75.0
50.0
50.0
13.6
25.0 .
February
February
February
February
February
February
February
February
February
February
February
17
17
18
18
18
19
24
24
25
25
25
14.0
10.5
30.4
45.2
11.5
February
February
March
March
March
26
26
2
3
4
20.0
20 . 5
March
March
11
17
33,0
March
17
TABLE 7: Forthcoming Large Long-term Public Security Offerings for New. Capital
(Other than U.S. Treasury)1 (continued)
As of February
9,
l
UUA 7
' 1 1970,
* 'Vt
AMOUNT
(MILLIONS
APPROXIMATE DATE
ISSUER
TYPE
OF OFFERING
OF
DOLLARS)
Other
Federal Home Loan Bank
Federal Home Loan Bank
*Tennessee Valley Auth.
Bonds
Bonds
Bonds
650.0
250.0
100.0
February
February
March
11
11
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. - i
TABLE 8: Stock Prices and Volume
TRADING; VOLUME 2
STOCK PRICES 1
DATE
S&P
500 3
1967 - High
Low
AMEX 4
NYSE
AMEX
943.08(9/25) 24.52(12/29)
7 8 6 . 4 K 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
6j? ' 86.33
752.77
25.56
60.1
20.0
1970 - Jan.
Feb.
l
97.59(9/25)
80.38(1/3)
D.J. - IND.
2
9
16
23
30
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 is1 New York Stock Exchange; AMEX is American Stock Exchange.
3.
1941-43 = l0.
4 .Average dollar value of shares listed.
15
STOCK PRICES AND TRADING VOLUME
AMEX
J 36
STOCK PRICES
-
'
1
24
1
! 1
1
I
I I I ll I i l l
ll
-
-
J
S&P's 500
1200 120
\ j ^ J
1120 112
\y
—
; ; 20
1040 104
.
f\j W
i i e
A 12 ~
960
96
880
88
800
80
720
72
-
\ n
*
V
H
v \
1
D.J. IND.
T
.-
\
M
/ vv
1:! 8
Millions of shares
i M
i M
I
60
AMEX TRADING VOLUME (TOTAL FOR WEEK)
40
I
. I
.1 ! |||
IjlP l|
j!
l|ll|
ll • .
|
20
NYSE TRADING VOLUME (TOTAL FOR WEEK)
s&p
(500)
1280 128
AMEX PRICE LEVEL INDEX A / 1
\ 32
; ' 28
D.J.
(Ind.)
Weekly
TABLE 9: Security Credit
(
END OF PERIOD
Outstanding;
1968 - Dec.
1969 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov. r/
Dec. £ /
NET CREDIT
CREDIT EXTENDED TO
MARGIN CUSTOMERS BY:
BROKERS r | BANKS 2"]" TOTAL"
CUSTOMERS 1
NET DEBIT
BALANCES
6,200
2,710
8,900
9,970
3,717
6,073
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
9,042
9,148
8,318
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
8,560
8,370
8,330
8,440
8,080
7,870
7,670
7,560
7,610
7,590
7,630
CUSTOMERS' NET EXTENDED BY
FREE CREDIT
BROKERS A N D
DEALERS 3
BALANCES'"
Change in
Qustandingt
1968 - Dec.
1969 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov. */
Dec. 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)
MUTUAL SAVINGS BANKS
REGULAR DEPOSITS 3
NET
\
DATE
NET
FLOW
ANNUAL
GROWTH
RATE
SAVINGS & LOAN ASSOCIATIONS
NEW
MONEY2
1
SHARE CAPITAL
ANNUAL
NET
GROWTH
FLOW
RATE 1
Not
1967
1968
1969 £/
1968 - N o v .
Dec.
1969 - Jan.
1969 - Nov.
Dec.
9.3
7.1
3.8
2,376
1,143
-747
10,649
7,399
4,024
359
694
218
--
293
-26
106
656
1,646
-92
180
-237 '
1970 - J a n . j>/
1969 - Aug.
Sept.
Oct.
Nov.
Dec. £ /
1970 - J a n . £ /
1
2
3
197
152
48
272
158
3.6
2.8
0.9
4.9
2.9
n.a.
n.
a.
NEW
MONEY
2
NET
FLOW
ANNUAL
GROWTH
RATE 1
226
1,074
-1,425
9.4
6.0
3.1
--
,
NET
NEW
MONEY
6,129
2,676
-998
15,731
11,607
6,476
9.4.
6.3
3.3
618
178
-130
1,015
2,340
126
--
207
-383
486
1,574
'
8,505
3,819
-1,745
—
387
-620
n. a.
-
2.0
4.0
-1.5
2.4
0.5
--
-762
•-6.8
--
-
422
598
-125
537
210
n. a.
2.5
3.6
-0.8
3.2
1.3
n.a.
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.
911
152
-24
Seasonally Adjusted
225
446
-173
265
52
2
"\
Seasonally Adjusted
5,082
4,208
2,452
260
468
TOTAL
DEPOSITS.
NET
—
19
SAVINGS FLOWS (seasonally adjusted)
Monthly
M i l l i o n s of d o l l a r s
~
2000
1600
TOTAL
1200
800
400
SAVINGS & LOANS
MUTUAL SAVINGS BANKS
1966
1967
1968
1969
0S70
TABLE 11: Mortgage Commitments at Selected Thrift Institutions 1
OUTSTANDING COMMITMENTS
NET CHANGE
ALL
ALL '
MUTUAL
SAVINGS
JOTAL
SAVINGS &
SAVINGS &
BANKS
' LOAN
LOAN
(N.Y. STATE)
ASSOCIATIONS
ASSOCIATIONS
(Billions of Dollars, Sea sonally Adjusted) 1/
DATE
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
9.7
6. 6
3.1
.01
9.9
10.1
10.3
10.5
10.4
10.2
9.9
9.5
9.2
8.9
8.6
8.4
6.7
6.9
7.0
7.2
7.1
7.0
6.8
6.5
6.4
6.1
5-9
5.8
3.2
3.2
3.3
3.3
3.2
3.2
3.1
3.0
2.8
2.7
2.7
.2.6
.18
.24
.18
. .15
-.11
-.18
-.32
-.36
-.31
-.33
-.24
-.25
MUTUAL
SAVINGS
BANKS
(N.Y. STATE)
.09
. 11
.18
:3
-.06
-.11
-.22
-.24
-.18
-.23
-.18
-.13
Based on data from Federal Home Loan Bank Board and Savings Banks Associations of
New York State. Data for savings banks and SSL'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
•.13
MORTGAGE COMMITMENTS OUTSTANDING (seasonally adjusted)
Monthly
Billions of dollars
TOTAL
S&L'S
N.Y.-MSB'S
Includes building loans beginning August 1967
1960
1962
1964
1966
1968
1970
TABLE 12: Net Change in Mortgage Holdings 1
TOTAL
INCLUDING
FNMA-GNMA
FINANCIAL INSTITUTIONS
LIFE
MUTUAL
SAVINGS &
INSURANCE
SAVINGS
LOAN
COMPANIES
BANKS
ASSOC.
Not Seasonally Adjusted
TOTAL | COMMERCIAL
|
BANKS
1966
1967
1968
18,197
19,988
23,776
15,874
18,191
21,268
4,705
4,369
6,677 '
1968 - Aug,
Sept.
Oct.
Nov.
. Dec.
• 1,995
1,997
2,254
2,095
"2,508
1,854
1,889
2,093
1,950
2,336
549
746
751
717
449
1969 - Aug.
Sept.
Oct.
Nov.
Dec.
2,124
1,987
1,795
1,636
1,596
1,486
400
500
300
300
200
1969- Jan.
Feb.
'
Mar.
Apr/
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
2,101
2,202
2,099
2,117
2,032
2,153
1,698
1,910
1,896
1,734
1,652
1,206
1,034
1,948
2,025
1,906
1,910
1,808
1,875
1,364
1,380
1,385
1,166
1,069
638
668
632
567
534
440
151
310
383
244
237
347
2,760
3,118
2,796
3,761
7,538
9,330
4,648
2,914
2,465
2,323
1,797
2,508
233
221
313
310
340
874
810
945
732
903
198
184
191
644
141
108
166
145
172
171
179
140
141
528501
589
594
. 181
844
687
120
608
158
151
450
n. a.
493
Seasonally Adjusted
885
281
884
266
875
240
899
250
854
251
1,022
230
859
181
720
147
674
137
627
124
547
146
536
112
144
207
159
194
169
183
173
193
191
171
139
153.
177
193
207
224
. 278
334
530
511
568
583
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, 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
\
Billions of dollars
3.0
2.5
TOTAL, INCL. FNMA - GNMA
FINANCIAL INSTITUTIONS
1.0
1966
1968
1969
TABLE 13: Net Increases in M o r t a l Oeht Outstanding
Billions of dollars, SAAR 2
1- to 4-
MULTIFAMILY
1
. MULTI-AND
COMMERCIAL
QUARTER
- TOTAL
RESIDENTIAL2
FAMILY
1965 - I
II
III
IV
24.9
25.2
25.8
26.6
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
II
III
IV
28.3
24.2
18.4
15.6
19.0
15.6
10.8
'9.5
14.7
12.1
8.3
7.2
4.3
3.5
2.6
2.3
6.9
6.5
5.4
4.3
1967 - I p
15.5
lip 20.4
III , 26.3
IVp 28.6
9.9
13.7
19.1
20.9
6.8
10.5
15.3
16.5
3.0
3,3
3.8
4.4
3.8
4.8 .
4.8
5.1
26.9
1968 - IP
IIP 25.8
IIII 25.8
3,1.3
IV
P
1969 - Ip
30.2
28.4
u p
IIIp 26.6
18.2
17.9
17.7
21.5
15.4
14.8
14.1
17.0
2.8
3.1
2.5
4.5
6.2
5.7
6.4
8.1
9.4
8.7
10.2
11.8
2.4
2.3
1.8
1.7
21.6
20.7
19.5
18.0
16.5
15.6
3.6
4.2
3.8
6,4'
5.3
5.1
10.4
9.4
9.2
2.2
2.4
2.0
1
2
•
.
COMMERCIAL
:
FARM
8.0
8.1
8.4
7.9
2,2
2.1
2.2
2.4
11.6
10.0
8.3
6.2
2.4
' 2.2
2.1
1.7
7.3
8.1
8.8
8.8
-
1.8
1.9
2.4
2.6
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 4-family
and multifamily mortgage debt combined.
.
NET INCREASES IN MORTGAGE DEBT OUTSTANDING
Quarterly
Billions of dollars, seasonally adjusted annual rate
32
TOTAL
24
TOTAL
RESIDENTIAL
Z\
I 1-4 FAMILY
COMMERCIAL
MULTIFAMILY
1965
1967
1969
TABLE 14: FNMA Weekly "Auction" Results
WEEK
ENDED
1969 - Nov. 3
10
17
24
Feb.
24.2
23.2
37.1
67.0
77.0
55.4
20.1
79.0
15
22
29
235.9
242.9
229.4
307.3
269.3
120.6
123.0
121.7
121.8
128.4
5
12
704.7
637.8
8-
581.4
122.7
8.4
70.4
150.7
8:7
81.8
AUCTION CANCELLED
297.8
37.7 187.3
Dec.
Jan.
IMPLICIT YIELD 2 (per cent)
COMMITMENTS IN $ MILLIONS
ACCEPTED
\
1 -YEARil
1-YEAR 1
909066TOTAL
TOTAL
& OVER
DAY
MONTH & OVER
MONTH
OFFERED
DAY
8.45
8.49
8.44
31.0
44.1
6.6
81.7
230.2
8,47
8.49
8.47
45.1
50.6
6.2
101.9
267.4
8.48
8.50
8.51
45.0
67.3
10.4
122. 7
242.6
8.50
8.53
8.54
41.6
67.7
13.0
122.3
233,4
9
22.6
68.2
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
43.9
60.2
9.19
9.40
9.19
9.36
9.15
9.40
72.8
9.37
9. 29
9.26
8.62
8.62
8.69
8.77
AUCTION CANCELLED
Note: 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 witihin 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.
-
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.
27
FNMA WEEKLY "AUCTION" RESULTS
$ Millions
AMOUNT OF ACCEPTED BIDS
BY COMMITMENT PERIOD
~~
;
<
•
a 6 MONTHS
1 YEAR
AND OVER
^ |
|
| 3 MONTHS
J
i
Y v
f-^|
1^
i
l
I
I
l
I
I
I
I
l
l
IMPLICIT YIELD
6 - M O N T H COMMITMENTS
$ Millions
bOO
600
TOTAL BIDS RECEIVED
400
200
(TOTAL BIDS ACCEPTED
JUNE
AUG.
OCT.
1969
DEC.
FEB.
APR.
JUNE
1970
AUG.
OCT.
DEC.
TABLE 15: Private Housing Starts and Permits
STARTS
SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE
1968 - Dec.
1,509
922
585
1969 - Jan.
"Feb.
Mar.
Apr.
"May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
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
514
527
TOTAL
96.4
101.5
90.0
131.9
159.0^
- 155.5
14 7. 3
125.2
124 . 9
129.3
123.4
94.6
80.5
UNADJUSTED
TYP E OF FINANCING
FHA VA OTHER
BUILDING
PERMITS
(SEASONALLY
- ADJUSTED
ANNUAL
RATE) 2
4.4
75.7
1,463
3.8
-14.2
3.5
13.2
18.9
3.9
4.4
23.0
4.3
21.1
4.6
21.5
4.7
20.8
4.2
22.4
4.8
18.3
25.1 . 5.0
"18.1. 3.9
4.2
18.8
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
16.3
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.
Building permits before January 1963 are Census estimate's 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
Monthly, annual rates
Millions of units
SEASONALLY ADJUSTED
2.0
HOUSING STARTS
1.6
1.2
BUILDING PERMITS
PER CENT OF UNADJUSTED TOTAL STARTS
MULTI-FAMILY
GOVERNMENT UNDERWRITTEN
1964
1966
1968
1970
TABLE 16: Mortgage and Bond Yields
FHA
MORTGAGES
2
DATE
25-YEAR 30-YEAR
1959-60 - High
1961-66 - Low "
1966 - High
1967 - High
Low
1968 - High.
Low
1969 - A u g . "
Sept.
Oct.
Nov.
• Dec.
6.26
5.43
6.73
CONVENSPREAD BETWEEN YIELDS
TIONAL
ON CONV-. &
MORTFHA MORTGAGES ;
3
GAGES
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
n. a.
n. a.
n. a.
n. a.
n. a.
8.36
8.40
8.48
8.48
8.62
8.20 ,
8.25
8.30
8.35
8.35
-. 16
-, 15
-.18
-.13
-.27
1
1
1 SPREAD BETWEEN
. NEW
Aaa CORYIELDS ON NEW
CORPORATE BONDS
• BORATE
AND
. BONDS
FHA MORTGAGES
55.25
1.69
4.41
.77
5.82
1.16
6.51
1.28
5.18
.27
6.79
1.20
6.15
.26
7.65
7.98
7.89
8:32
8.75
.71
.42
.59
.16
-.13
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
arid 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 T a b l e
1.
MORTGAGE AND BOND YIELDS
Monthly
Per cent
HOME MORTGAGES:
CONVENTIONAL
%
Aaa CORPORATE BONDS:
I^EW ISSUES
_ _ _
Y I E L D S P R E A D ( F H A MORTGAGE VS. NEW ISSUE Aaa CORPORATE BONDS)
-
Basis Points
200
100
100
1962
1964
1966
1968
1970
T A B L E 17: Conventional Mortgage Terms
NEW HOMES
DATE
1
EXISTING HOMES
FEES &
CONLOAN/
T R A C T CHARGES EFFEC- MATU- PRICK
(PER
RATE
RITY
RATIO
TIVE
C E N T ) RATE
(YEARS) (PER(PER
2
CENT)
CENT)
3
CONFEES &
1
T R A C T CHARGES EFFEC-j MATURITY
RATE
(PER
T I V E ! (YEARS)
C E N T ) RATE •
(PER
CENT)
3
2
i
LOAN/
PRICE LOAN
RATIO AMT.
(PER ($000)
CENT)
4
7.09
0.89
7 .23
25.9
74.0
24.7
7.09
0.85
7 .23
23 .3
73.2
20.4
7.16
7.26
•7.32
7.47
7.50
7.62
0.84
0.81
0.93
0.96
7 .30
7,.39
7,.47
7,.62
0.86
0.86
7.76-^
7.86
7.89
7.98
0.88
0.84
0.92
0.86
0.92
0.89
7.97
8.07
0.96
1.06
LOAN
AMT.
($000)
-1968
Dec.
1969
-Jan.
Feb.
Mar.
Apr.
May.
June
July
Aug.
Sept.
Oct.
Nov."
Dec.
25.6
25.6
73.6
73.3
73.8
72.6
24.1
23.5
24.0
24.8
7.18
7.28
7.35
7.46
7,.63
7,,76
7,,91
8.,00
8.,05
8.,13
25.8
25.4
25.8
25.6
25.5
25.2
25.3
25.3
73.2
73.0
72.0
72.3
72.A
72.9
25.0
24.9
24.5
24.3
24.7
25.0
8,,13
8,.24
25.3
25.4
72.8
71.9
7,,32
7,,42
7,,49
7.,60
22 .8
22,.9
23,,0
23,,0
72.6
72.8
72.7
71.8
' 20.2
19.9
7.54
7.64
7.79
7.90
7.92
7.98
0.84
0.85
0.83
0.86
0.91
0.93
0.92
0.91
7.,68
7.,79
7. 9 4
8. 0 5
8. 0 8
8. 13
22..7
22.,8
22,,8
22. 6
22. 2
22. 2
71.9
71.4
71.7
71.2
70.7
70.2
19.7
20.1
20.1
19.8
19.2
19.5
24.6
8.00
0.90
8. 15
22. 6
70.4
20.1
25.0
8.07
0.93
8. 2 2
23. 0
70.6
20.9
20.0
19.6
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 ownorbulldor-s. 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 r a t e s — i n 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
MATURITY
NEW
25
EXISTING
20
I i i i i i i i n i i I i i i i i i m15
i i i I
Per
LOAN/PRICE RATIO
80
.
NEW
75
EXISTING
70
65
Thousands of
LOAN AMOUNT
30
NEW
20
EXISTING
10
1964
1966
1968
1970
* CHANGE IN SERIES
@FedFRASER