Full text of H.16 Capital Market Developments : January 15, 1971

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COB
lfEA
liL

L.5.8

AFTER S I X M O M S

Grfnfcidential ( F . R . )

January 15, 1971

L ^

CAPITAL
MARKET
DEVELOPMENTS

Capital Markets Section, Division of Research arid 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 o.

Not available




3
TABLE 1: Yields, Volume and Reception .
YIELDS
MOODY 1 S
SEASONED
NEW ISSUE 1
Aaa

WEEK ENDING

1970 - Dec.

1971 - Jan.

4
11
18
25

7.95
7.74
7.68
--

1
8
15
22

7.59
7.31
n.a.

1970 - Dec.

4
11
18 j
25

1971 - Jan.

7.85 .
7.78
7.59
7.51
7.48
7.45
7.42
j'

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

WEEK ENDING

1

1 i
8 |
15 !
22!

CORPORATE BOND MARKET
VOLUME 2
PER CENT
1
GROSS
SOLD BY END
! BONDS SCHEDULED
OFFERINGS
OF WEEK
: WITHIN 28 DAYS
849
796
525
52

92
85
58
96

__

__

345
797
375e.

80
95

943
761
878
800
773

....

748

i
MUNICIPAL BOND MARKET
VOLUME 2
1 PER CENT
'
GROSS
SOLD BY END
I BONDS SCHEDULED
OF WEEK
j WITHIN 28 DAYS
OFFERINGS

5.15
5.15
5.25
5.25

5.41
5.33
5.47
5.50

477
709
813
173

74
48
77
78

1,341
919
995
901

5.25
5.40
5.00

5.58
5.74
5.39

42
561
810
506 e

82
86
94

1,377
1,653
n.a.

....

....

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

See footnotes to Table 3




TABLE 2: Details ori'inventories
DATE
OFFERED

CORPORATE! BONDS IN SYNDICATE END OF LATEST WEEK
[ORIGINAL 1 RATING AND
ISSUER
COUPON | YIELD [CALL PROTECTION

' AMOUNT
(MIL. $)

Carolina Pwr. & Light
Industrial Nat'1 Corp.
Amer. Invest.

65.0
25.0
30.0

1/14
1/14
12/10

\

7.33
8.35
9.50

7-3/8
8-1/4
9-1/2

Aa
N.R.
N.R.

5 y r s.
10 yrs.
5 yrs.

ESTIMATED PROPORTION SOLD

40%
90%
60%

• \.

OFFERED

DATE
| RELEXSED

.

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
1970 - Dec.
1971 - Jan.

18
25
1
8
15

952
986
939
r810
846

.

323
260
235
196
96

CORPORATES
IN SYNDICATE
369
290
263
95
48

N.C. - No call protection.

1
All figures"~in millions of dollars.

• which is- daily average of three days


Blue List is daily average for week ended Friday,except for latest, week
ended Wednesday. All other figures are as of Friday.
-<•

. / T A B L E 3: High Grade Bond Yields

NEW
CORPORATE
Aaa 1

DATE

MOODY'S SEASONED
CORPORATE
Aaa 2

U.S. GOVERNMENT
20-YEAR
CONSTANT
MATURITIES 3

BOND
BUYER'S
SEASONED
MUNICIPALS 4

1968 - High
Low

7. 02
6. 13

(12/13)
(8/30)

6.55
5.95

(1/27)
(9/13)

5.90
5.18

(1/20)
(8/9)

4.85
4.07

(1/26)
(8/8)

1969 - High
Low

8.,85
6.,90

(12/5)
(2/21)

7.84
6.55

(2/26)
(1/12)

6.97
5.96

(12/26)
(1/24)

6.90
4.82

(12/18)
(1/28)

1970 - High
Low

9,.30
.7,.68

(6/19)
(12/18)

8.60
7.48

(7/3)
(12/31)

7.55
6.17

(5/29)
(12/18)

7.12
5.33

(5/29)
(12/11)

1970 - Dec.

18
25

1971 - Jan.

1
8
15

1

7 .68

.
7 .59
7 .31

7.59
7.51

6.17
6.34

5.47
5.50

7.48
7.45
7.42

6.44
6.36
6.21

5.58
5.74
5.39

New corporate issues, with call protection, adjusted (as described in
footnote 1 of Table 1) to a Aaa basis.
2
Weekly average of daily figures. Average term of bonds included is
22-24 years.
3
Weekly average of daily figures.
4
Thursday figures. The average rating of the 20 bonds used in this index
falls midway between the four top groups as classified by Moody's Investors Service.
Note--Highs and lows are for individual series and may be on different dates
for different scries.




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

PERIOD

1968

1,771 ' !
1,608
I
1,799

1,340
1,214
1,551

1,262
987
538

1,178
1,158
1,404

2 ,748
2 ,076
2 ,530

1,428
1,866
2,411

;

1,647
995
1,088

1,801
1,110
737

1,318
1,143
1,395

2,768
2,274
3,518

2 ,478
1 ,427
2 ,427

2,143
1,432
1,557

I
!
.

1,338
1,355
1,728

1,097
808
559

1,469
1,699
1,444

;

3,800e
4,050e
3,700e

1 ,933
2 ,375
2,,532

2,129
1,767
2,054

j

1,860
l,600e
2,214e

1,280
886
816

2,230
1,021
1,115

'
j

7,977
10,468
8,560
11,550e

6,218
7.,354
6,,332
6;,840

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

•

4,105
3,730
•4,421
5,674e

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

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

18,445
27,005
38,555e

13,,572
19, 904
26, 744

10,882
16,015
21,965

7,835
12,256e
! 17,930e

6,435
8,899
11,881

January
February
March

2,636
1,802
3,539

2 ,075
2 ,045
2 ,098

April
May

3,170
3,909
3,389

July
August
September
October
November
December

1st half
Three quarters
Year

1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

1968

"

Excluding finance companies 3

j

6, 170
7, 037

I

5,107
5,427
4,785
5,654

1
Securities and Exchange Commission estimates of gross proceeds.
Investment Bankers Association of America estimates of principal amounts.
Total gross proceeds excluding offerings of sales and consumer finance
companies.




;

^
;
t

7,956 J
12,008 =
16,574 i

20,973

Year
1
2
3

1

1969

1969

Quarter
Quarter
Quarter
Quarter

STATE AND LOCAL 2

!

1970

1970

1st
2nd
3rd
4th

1

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

OlIARTER
OR
MONTH

TOTAL

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

GROSS PROCEEDS BY
TYPE OF ISSUER
PUBLIC
UTILITY

COMMUNICATIONS

OTHER
ISSUERS 1

6,840

3,479

1,053

2,307

115

809

1,314

1,967

598

2,961

1970 - I
lie
Il.Ie
IV

7,977
10,468
8,560
11,550

4,577
6,994
5,987
7,650

1,235
1,282
914
1,400

2,147
2,190
1,659
2,500

222
135
83
n.a.

922
710
287
550

2,584
2,445
2,314
2,900

2,085
2,812
2,714
2,995

766
2,162
868
1,325

2,543
3,048
2,663
4,330

1969 - Dec.

2,532

1,346

514

672

48

401

601

600

277

1,054

2,636

1,595

3,539
3,170
3,909
3,389
2,768
2,274
3,518
3,800
4,050
3,700

1,914
2,022
3,041
1,931
1,831
1,731
2,425
2,400
2,950
2,300

516
266
471
447
399
436
320
205
389
400
300
700

525
468
1,154
701
468
1,021
617
338
704

61
33
128
89

387
249
286
398
230
82
107
59
121
150
200

811
357
1,416
689
817
939
638
682
994
1,125
1,025
750

639
540
906
1,109

234
226
306
62
1,747
353
144
279
445
375
675
275

952
680
911
1,310
744
994
1,143
682
838

1969 - IV

1970

Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept&/
Oct.-'
Nov.-

1,802

1,068

1,000
800
700

20
26

68
11
4
n. a.
n.a.
n.a.

200

600

1,103
843
630
1,241

1,100
970
925

\X
Other issuers arc extractive, railroad and other transportation, real estate
and finance, and commercial and other.
Source: Securities and Exchange Commission. Quarterly supplements are available.




1,200
1,380
1,750

/
TABLE 6: Large Long-term Public Security Issues for New Capital
(Other than U.S. Treasury) 1
January 8,thru January 15.

ISKUKR

TYPE y

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

I'.OUVON,
HATS: OR
X1., I..TKK1 ST COST

OL'TT.RINC
YLL',1,1)

MOOhY'
KATIM,

Corporates
B. F. Saul Real Estate Invest.
Trust.
Commonwealth Edison Co.
Alabama Gas
Union Electric Co.
Northwestern Bell Tel. Co.
Pub. Serv. Co. of Ind.
National Lead Co.
Carolina Pwr. & Light Co.
Western Auto Supply Co.
Associates Corp.
Industrial Nat'1 Corp.
Macy Credit Corp.
Florida Pwr. & Lt. Co.
Elizabeth Wtr. Co.
1st. Penna.Banking Trst. Co.
Arvin Industries
Oscar Mayer's
Cities Service Co.
Cities Service Co.
Madison Gas & Elec.




Debs.
1st. Mtg
1st. Mtg .
1st. Mtg
bds.
Debs.
1st. Mtg .
Debs.
1st. Mt|g
S.F. debs.
Debs.
Debs.
Debs.
1st. Mtg
Bds.
Cap. Notes
S.F. debs.
Debs.
Notes
Debs.
1st. Mtg .

17.0
100.0
16.0

1990
2001
1996

8.00
7.50
8.75

8.00
7.45
8.65

50.0
150.0
50.0
100.0
65.0
50.0
50.0
25.0
30.0
80.0
17.0
25.0
15.0
40.0
50.0
100.0
15.0

2001
2011

7.88
7.88
7.63
7.50
7.38
7.85
8.50
3.25
7.38
7.63
7.88
6.88
9.38
A 85
7.00
7.65
7.75

7.75
7.85
7.55
7.52
7.33
7.85
9.25
8.35
7.32
7.54
7.63
6.88
9.38
7.85
6.95
7.65
7.60

——

1995
2001
1996
1990
1996
1977
2001
1977
1978
1996
1996
1978
2001
2001

Aaa
A
Aa
Aaa
A
A
Aa
A
——
——

Aa
A
Baa
A
A
A
Aa

TABLE 6: Large Loncj term Public Security issues for New Capital (contimn d)
(Oilier than U.S. Treasury)'

1
ISSUER

TYPE 2

AMOUNT
(MILLIONS
OF
DOLLARS)

Januarys. thru January 15.1971
COUPON
!
RATE OR
I OITI:I<- MOODY'S
MATURITY NET INTER-- :
I;.(
RATING
EST COST
I VI l.l.l)

State and Local
Washington Suburban Sanitary Dist
Vineland, N.J.
Kentucky Turnpike Auth.
San Antonio, Tex.
New Jersey, State of
The Chicago Pub. Bldg.
Oregon, State of
Oregon, State of
New York State Dormitory Auth.
Wisconsin, state of
Connecticut Health & Ed Fac.
Auth.
Birmingham, Ala.
Birmingham, Ala.
Hillsborough Co. STSD #1 Fla.
*North Carolina
Port of Seattle, Wash.
Dallas Co., Tex.
Metro Wtr. Dist. of So. Calif.
1
New York City




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

10.0
10.0
100.0
30.0
75.0
56.0
15.0
60.0
30.7
35.0

1972-2001
1972-1996
1974-1990
1972-1992
1998-2001
1973-1991
1972-1991
1975-1978
1973-2002

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

10.9
10.0
,5.7
18.0
115.0
27.0
25.0
100.0
236.0

1973-2002
1971-98
1971-88
1972-91
1972-81
1973-01
1972-91
1981-00
1972-01

5.99
5.30

3.20-6.50
3.00-5.80

—

5.17
5.23
6.01
4.80
4.90
6.58
4.67
7.20
5.32
5.03
5.02
3.79
6.40
4.46
5.86
6.98

--

„

\

3.00-5.50
3.60-5.75
3.50-6.50
3.00-5.60
3.65-5.30
3.50-7.00
3.00-5. 50
4.006.00
2.90-6.30
3.00-6,25
4.00-5.40
2.75-3.90
3.50-6.90
2.90-5.20
4.10-5.70
4.70-7.40

A
Aa
—

Aaa
Aaa
A-l
AA
Aa
—
--

A
A
A
A-l
A
--

Aa
Baa-1

'

°

• •

'

\

TABLE B: Lartje LOIVI term Public Security Issuos'for New Capital (continuvd) ,x
tOtliei than U.S. Treasury) 1

4

ISSUER

TYPE 2

Montgomery Co., Md.
Easton Baton Rouge Parish, La.
Greater Chicago Metro Sant.Dist
Washington Pub. Supply Systern

G.O.
G. 0.
G.O.
Rev. notes

Other
Federal Home Loan Bank

Bds.

AMOUNT
(MILLIONS
OF
DOLLARS)
30.0

10.0
20.0
15.0

January 8. thru January 15, 1971
COUPON
|
i RATE OR
MOODY'S
MATURITY 1 NET INTER!:.(
RATING
_ } EST COST
j VI 1.1,1)
1972-01
1972-91
1973-91
1974

4.87
4.77
5.03
3.45

1975

6.

3.10-4.89
3.00-5.35
3.20-6.00
N.R.

A
A-L

/
250.0

6.10

K i ghts ol" for ing.
Includes corporate'and other security offerings of $15 million
State and local security offerings of $10 million and over.
In case of State and local government secuni ties, G.O. denotes gem r,i I obi igation;
Rev. -Vt. , revenue obligations secured onl'vjpy income from pub 1
Rev.-Q.-lit., revenue bonds secured only by income from quasi-u t i 1 i t i;e Rex .-S.T. ,
revenue bonds secured by revenue from specific taxes only; Rev . - Rent.
bonds secured solely by lease payments.
includes foreign government and International Bank for Rcconst
Development issues and non-quarantced issues by Federal Agenci




11
TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury)1
(continued)
As of January 15, 1971

ISSUER
Corporates
Safeco Corp.
Galbreath 1st. Mtg. Invest.
Penna Elec. Co.
American Finance System Inc.
Pacific Gas Transmission Co.
Walter E. Heller & Co.
Monumental Corp.
Food Fair Stores Inc.
Tampa Electric
Alabama Gas Co.
Jim Walter Cdrp.
Southwestern Bell Tel. Co.
Outboard Marine Corp.
Gen'1 Tel. Co. of Wis.
Jos. Schlitz Brewing Co.
Microdot Inc.
Beneficial Corp.
Beneficial Corp.
Occidental Petroleum Corp.
Penna Pwr & Lt. Co.
Niagara Mohawk Pwr."Co.
Pacific Pwr. & Lt. Co.
Pub. Serv. Co. of Colo.
Texas Pwr. & Lt. Co.
Central Pwr & Lt. Co.
Indiana & Mich. Elec. Co.
Georgia Pwr. Co.
Wisconsin Tel. Co.
Gen'1 Tel. Co. Florida




TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

25.0
Notes
Debs.
15.0
Debs.
30.0
Debs.
30.0
40.0
Bds.
20.0
Debs.
20.0
Notes
35.0
Debs.
30.0
1st. Mtg.
16.0
1st. Mtg.
30.0
Conv. deb.
200.0
Debs.
Debs.
35.0
15.0
Bds.
50.0
Debs.
20.0
Notes
Bds.
50.0
25.0
Bds.
Conv. debs,
100.0
60. p
Debs.
1st. Mtg.
65.0
1st. Mtg.
40.0
1st. Mtg. bds. 40.0
30.0
1st. Mtg.
36.0
1st. Mtg.
30.0
Bds.
1st. Mtg.
49.5
Debs.
90.0
45.0
1st. Mtg.

APPROXIMATE DATE
OF OFFERING

Jan. 18
Jan. 18
Jan. 18
Jan. 19
Jan. 19
Jan. 19
Jan. 19
Jan. 19
Jan. 20
Jan. 20
Jan. 26
Jan. 26
Jan. 26
Jan. 27
Jan. 27
Jan.
Jan.
Jan.
Jan.
Feb. 1
Feb. 2
Feb. 2
Feb. 3
Feb. 4
Feb. 9
Feb. 10
Feb. 16
Feb. 16
Feb.

TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital .
(Other than U.S. Treasury)'
^ q£ J a n u a r y 15>

ISSUER

State—and Local
Virginia Public Sch. Auth.
Norfolk, Va.
Georgia Education Auth. ,
Sacramento Municipal Utility Dis
California
Jefferson Co., N. Y.
Attleboro, Mass.
New York St. Urban Dev. Corp.
Utica Comm. S/D, Mich.
New Hampshire, State ofs
Mississippi, State of
^
Phoenix, Ariz.
Ohio, State of
Hennepin Co., Minn. Area Voc
Tech. Indpv Sch. Dist. #287
San Francisco BART
San Juan P.R.
Baton Rouge, La.
University of Tex., Austin
Connecticut
Prince William Co., Va.
Alaska
Los Angeles DWAP
California
San Antonio, Tex.
Peabody, Mass.
Los Angeles Co. Fid. Ctr. Dist
California
Other
HUD

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

l g n

APPROXIMATE DA^E
OF OFFERING

G. 0.
G.O.
Rev.

25.0
25.0
33.0

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

50.0
10.0
10,4
250.0
14.0
39.1
30.0
10.0
25.0

Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.

20
19
20
21
25
26
26
26
27

G.O.
Bds.
Rev.
Rev.
G.O.
G.O.
G. 0.
Rev.
Bds.
Rev.
G.O.

13.0
50.0
14.8
15.8
20.0
100.0
15.0
21.3
18.0
100.0
10.0
11.0

Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Feb.
Feb.
Feb.
Feb.
Feb.

27
27
27
27
28

G.O.

24.0

Feb. 16

Bds.

135.0

Jan. 27

Jan. 19
Jan. 19
Jan. 19

4
29
2
2
2
11
11

Included in table for first time.
.
Includes cdrporate_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

"J

f
f

1
1
•

r

pr

E
r
. i.
f

TABLE 8: Stock Prices and Volume
STOCK PRICES 1
NYSJS « 1
INDEX 4

DATE

D.J. - IND.

TRADING
AMEX 4

NYSE

VC

M*1L2

|

AMEX

1968 - High
Low

61.27(11/29)985.21(12/13)
48.66(3/5) 825.13 (3/21)

33.24(12/20)
21.97(3/25)

17.1(7/12)
8.3(3/29)

9.3(1/19)
2.9(3/29)

1969 - High
Low

59.32(5/14) 968.85(5/14)
49.31(7/29) 769 . 93(12/17)

32.91(1/3)
25.02(7/29)

16.5(3/29)
8.6(8/29)

8.0(1/31)
3.6(11/21)

1970 - High
Low

52.36(1/5) 842.00(12/29) 27.02(1/8)
37.69(5/26) 631.16(5/26) ' 19.36(5/27)

18.5(12/4)
7:8(8/14)

7.1(1/2)
1.8(8/14)

1970 - Dec. 18
25

49.06
49.37

822.77
828.38

22.08
22.41

13.9
13.7

3.2
3.3

1971 - Jan.

50.23
50.46
51.16

838.92
837.01
845.70

22.75
23.10
23.52

15.6
14.0
17.4

4.4
3.6
4.3

1
8
15

1.

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

2.

NYSE is the New York Stock Exchange; AMEX is the American Stock Exchange.
Volume figures are daily averaged for the entire week, (millions of shares).
Trading is normally conducted for 5-1/2 hours per day and 5 days per week,
or 27-1/2 hours per week. In recent years, however abbreviated trading to
the extent, and over the time periods, shown below;
Hours/
Days/
Hours/
Day
Week
Through:
From
August 8, 1967
January 22, 1968
June 30, 1968
January 3, 1969
July 7, 1969
January 2, 1970

August 20, 1967
March 1, 1968
December 31, 1968
July 3, 1969
December 31, 1969
May 1, 1970

3.

12/31/65 = 50

4.

Average dollar value of shares listed.




4
4
5-1/2
4
4-1/2
5

5
5
4
5
5
5

Highs and Inws are

20
20
22
20
22-1/2
25

14
TABLE 9: Security Credit

END OF PERIOD

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

Outstanding;
5,040
5,070

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

1970 - Jan.
Feb.
Mar. .
Apr.
May
June
July
Aug.
Sept.
Get.
Nov.

7,610
7,590

!

|

7,243
7,111

2,753
2,613

4j490
4,498
4,642

4,970

2,580

"7,550

7,445

2,803

4,680
4,570
4,520
4,360
4,160
4,150
3,800
3,810
3,920
4,010
4,012

2,430
2,370
2,370
2,330
2,290
2,290
2,290
2,300
2,330
2,270
2,320

7,110
6,940
6,890
6,690
6,450
6,150
6,090
6,110
6,250
6,280
6,332

6,683
6,562
6,353
5,985
5,433
5,281
(4)
(4)
(4)
(4)
(4)

2,626
2,563
2,441
2,248
2,222
2,009
(5)2,180
2,083
2,236
2,163
2,197

-60
100
30
-100

-50
-50
-50
60

-110
50
-20
-40

20
204
-132
334

-290
-110
-50
-160
200
-10
-350
-10

-150
-40

-440
-170
-50
-200
240
-300
-60
-2 0

Change in
Outstanding;
1969 - Sept.
Oct.
Nov.
Dec.

2,570
2,520 •

NET CREDIT
j
i CUSTOMERS' I CUSTOMERS' NET EXTENDED BY
BROKERS AND
j NET DEBIT | FREE CREDIT
DEALERS 3
BALANCES j
BALANCES

4,057
4,099
3,912
3,724
3,211.
3,272
(4)
(4)
(4)
(4)
(4)

-

i

110
90
2

—

-40
-40
-——

10
30
-60
50

140
30
52

2
174
-140
.190

18
30
8
144

-762
-121
-209
-368
-552
-152

-177
-163
-22
-193
-26
-213

-585
42
-187
-188
-513
-61

——

171
97
153
-73
34

--

.

——
--

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
1
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
lapoe 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.
4 Series discontinued.
5 Changes in series.




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

DATE

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

SAVINGS ,
5c LOAN ASSOCIATIONS
NET
SHARE CAPITAL
NEW
ANNUAL
NET
MONEY 2
GROWTH
FLOW
RATE 1

5,082
4,203
2,549

2,376
1,143
-763

10,649
7,432
4,019

266
179
-237

-406
226
1,069

TOTAL
DEPOSITS
ANNUAL
NET
GROWTH
RATE 1
FLOW

NET
NEW
MONEY 2

Not Seasonally Ad lusted
9.3
7.0
4.0

Oct.
Nov.
Dec.

-138
257
571

Oct.
Nov.
Dec.

276
497
900

--

497
268
437
444
531
557

8.8
4.7
7.6
7.7
9.1
9.5

2./

——
— --

--

138
388
n.a.

1,130
1,098
2,696

9.3
6.0
3.1

—
—

—-

6,136
2,738
-1,003

15,371
11,635
6,568

-430
207
-387

-544
483
1,640

--

1,064
n.a.
n.a.

1,406
1,595
3,596

. --

9.3
6.3
3.4

8,512
3,881
-1,766
-696
386
-624
1,202
n.a.

Seasonally Ad iusted
July
Aug.
Sept.
Oct.
Nov.
Dec. 2./
1
2
3

—

--

--

1,776
785
1,393
1,399
1,092
1,721

15.5
6.8 ,
11.9
11.9
9.2
14.3

-—-

——
---

2,273
1,053
1,830
1,843
1,623
2,278

13.3
6.1
10.5
10.5
9.2
12.8

1

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&L s 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 cert a j n
escrow accounts, which represent a very small part of total deposits.
X,
SOURCE: National Association of Mutual Savings Banks and Federal Home Loan Bank Board.




•
-——
-— •

TABLE 11: Mortgage Commitments at Selected Thrift Institutions

DATE

TOTAL

NET CHANGE
ALL
SAVINGS &
LOAN
ASSOCIATIONS

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

(Billions of Dollars, Seasonally Adjusted)

1969 - Sept.
Oct.
Nov.
Dec.

9.2
8.9

1970 - Jan.
Feb.
Mar.
Apr.
May
June
July

8.2

8.6
8.4

7.9
7.6
7.8

8.0
8.2
8.6

6.4

6.1
5.9
5.8
5.6
5.4
5.2
5.4
5.8

6.1
6.5

2.8
2.7
2.7

2.6
2.6
2.5
2.5
2.4

2.2
2.1
2.0

1

-.31
-.33
-.24
-.25

-.18

-.17
-.30

-.26

.13
.24

.22

r.38

MUTUAL
SAVINGS
BANKS
(N.Y. STATli)

1/

-.23

-.13
-.09

12

-.13

-.22
-.23

.04
-.07
-.05
-.13
-.14
-.09
r-.04

-.18

-.21
.26

.38
.30
r.42

r.33
2.0
r.24
6.8
9.8
Aug.
.39
r.24
r?.l
1.9
9.1
Sept.
.32
.39
9.3
Oct.
1.9
7.4
.33
.34
1.9
7.5
-NoVji.
-9-.ABased on data from Federal Home Loan Bank Board and Savings Banks Associations 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. Mutual Savings Banks and total data
include building loans beginning August .1967.




-. 06

r-.08
-.10
-.06
-.07

17

TABLE 12: Net Change in Mortgage Holdings 1

DATE

TOTAL
INCLUDING
FNMA-GNMA

TOTAL

FINANCIAL INSTITUTIONS
MUTUAL
SAVINGS &
COMMERCIAL
SAVINGS
LOAN
BANKS
BANKS
ASSOC.
Not Seasonally Adjusted

1966
1967
1968
1969

18,105
20,016
23,781
24,051

15,782
18,219
21,273
19,676

1969 - Aug.
Sept.
Oct.
Nov.

2,151
1,942
1,815
1,636

1,623
1,441
1,226
1,042

1970 - Aug.
Sept.
Oct.
Nov.

1,967
2,213
2,153
n.a.

1,568
1,851
1,786
n. a.

200
400
200
r300

1969 - Oct.
Nov.
Dec.

1,750
1,648
1,913

1,204
1,078
1,315

292
228
314

130
144
279

1970 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.

1,469
1,542
1,330
1,351
1,485
1,749
2,083
1,817
2,091
2,074
n.a.

919
1,044
809
844
1,050
1,281
1,575
1,409
1,727
1,754

231
199
140
76
65
81
165
168
228
195
224

25
143
186
188
155
201
142
175
245
170
176

4,705
4,639
6,677
5,535
400
500 .
300
300

LIFE
INSURANCE
COMPANIES

FXMA-GNMA

'

2,720
3,153
2,787
2,682

3,761
7,520
9,350
9,407

4,596
2,907
2,459
2,052

181
120
158
151

844
667
608
450

198
154
160
141

528
501
589
594

182
216
196
183

1,111
1,122
1,202
1,165

75
113
188
n. a.

399
362
367
252

601
555
571

181
151
151

546
570
598

452
482
322
385
631
777
1,055
983
1,103
1,189
1,270

211
220
161
195
199
222
213
83
151
200
n.a.

550
498
521
507 *
435468 :
508
408
364
320
228

!
l
i
i

2,323
1,797
2,508
4,375

Seasonally Adjusted R/

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, 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 86 per cent of the net increase estimated for all holders in 196 9.




TABLE 13: Net Increases in Mortgage Debt Outstanding

1

Billions of dollars, SAAR QUARTER

TOTAL

RESIDENTIAL 3

1- to 4FAMILY

MULTIFAMILY

COMMERCIAL

MULTI-AND
COMMERCIAL

FARM

8.2
6.0

2.2
1.8

7.3
8.4
8.8
8.4 •

1.8
1.8
2.5
2.8

1966 - II
IV

18.6
15.1

10.9
9.1

8.3
7.0

2.6
2.1

5.5
4.1

1967 - I
II
III
IV

15.9
20.7
26.6
27.3

10.3
13.9
19.2
19.8

7.0
10.5
15.3
16.0

3.3
3.4
3.9
3.8

3.9
5.0
. 4.9
4.8

1968-r I p
1$
IIIp
IVp

27.7
26.2
26.0
29.6

19.0
18.2
17.7
20.2

15.8
15.0
14.1
16.4

3.1
3.2
3.4
3.8

6.4
5.9
6.5
7.5

9.4
9.2
10.2
11.1

2.3
2.2
1.8
1.8

1969 - I p
H p
IIIp
IVp

31.3
28.9
26.5
30.4

29.0
21.5
19.3
18.3

18.6
16.8
14.6
13.0

4.4
4.7
4.7
5.3

6.2
5.2
5.3
5.4

10.4
10.1
10.0
10.7

2.2
2-2
1.8
1,4

j

1970 - I p
ii>
IIIp
IVp

20.3
23.4
26.9

13.8
16.9
20.9

8.8
11.5
15.0

5.0
5.4
6.0

5.0
5.0
4.2

9.8
9.8
10.1

1.5
1.5
i.7

!

-

;
|
f

I

1
!

1 Derived .-from data on mortgage debt outstanding from Federal Deposit Insurance
Corporation, Federal Home Loan Bank Board, Institute of l i f e 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 interpolation#
and extrapolations, where required, estimated mainly by Federal Reserve.
2 May differ somewhat from related flow of funds serie? mainly because of more
aggregative type of seasonal adjustment.
3 Residential mortgage debt includes nonfarm only and is sum of 1-to 4- family
and multifamily mortgage debt combined.




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

WEEK
ENDED

IMPLICIT YIELD 2 (per cent)
COMMITMENTS IN $ MILLIONS
ACCEPTED
1
1-YEAR 1
1-YEAR'
90f) 90TOTAL
TOTAL
6& OVER
DAY
MONTH
M0NTH & OVER
OFFERED
DAY

Aug.

10
24

441.3
575.0

180. 2
215. 1

41.4
48.8

91.0
124.4

47.8
41.9

9.03
9.03

9. 03
9. 03

9.04
9.03

Sept .

8
21

384.2
207.8

200. 1
195. 3

4 .6
4i.l

117.0
121.5

37.5
33.7

9.06
9.01

9. 04
9.,01

9.04
9.02

Oct.

5
19

267.5
352.5

149.,8
149.,7

62.2
53.2

73.1
88.1

14.5
8.4

8.90
8.89

8.,92
8,,90

8.97
8.95

Nov.

2
16

341.5
222.4

181,,2
170,,3

100.1
75.8

62.4
79.4

18.7
15.1

8.90
8.89

8,.93
8 .90

8.93
8.92

Dec.

7
14
28

166.5
165.5
60.6

127,,8
124,.7
48 .1

54.7
42. 1
17.:2

60.9
72.1
28.9

12.2
10.5
3.0

8.56
8.51
8.41

8 .54
.8 .43
8 .36

8.57
8.47
8.40

Jan.

11

3/
(75.0)

Note: Under the FNMA auction system, approved sellers of Governmentunderwritten mortgages hid for FNMA forward purchase commitments, subject to an over-all dollar limit announced by FNMA in advance. Rids
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 of
1 r> years for 30-year Government-underwritten mortgages. Yields shown
are gross, before deduction of 50 basis points fee paid by investors
to servicers.
Prior to August 1 0 , 1970 the servicing fee was 50 basis points.

3

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




20

TABLE 15: Private Housing Starts and Permits
STARTS
UNADJUSTED
TYPE OF FINANCING
FHA | VA I OTHER

SEA SONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE

1969

Nov.
Dec.

1,280
1,402

762
776

518
626

94.6
84.1

1970

Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept. r
Oct. r
Nov. p

1,059
1,306
1.392
1,224
1,242
1.393
1,603
1,425
1,509
1,570
1,692

577
725
708
697
728
835
827
838
881
881
933

482
581
684
527
514
558
776
776
587
627
689

66.4
74.3
114.7
128.4
125.0
135.2
140.8
128.7
130.9
139.6
126.9

18.8

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2

3.9
4.2

74.7
57.9

1,191
1,239

16.5 3.4
17.5 3.9
25.2 4.8
32.4 5.4
37.1 5.2
40.7 5.1
43.4 5.3
34.1 5.6
34.3 5.3
40.4 3 f 8
33.7 5.5

46.5
52.9
84.7
90.6

1,013
1,137
1,099
1,263
1,321
1,306
1,275
1,326
1,371
1,506
1,508

23.2

80.8
89.4
92.1
87.7
91.2
91.8
87.7

Total starts are Census estimates including farm for both permit-issuing and
noh-issuing areas. A dwelling unit is started when excavation begins; all units j
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 J
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 inf
elude 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 per'
mits reflect direct adjustment for differences in the number of working days per i
month, as well as other differences in timing and coverage.
I




21

TABLE 16: Mortgage and Bond Yields
FHA
MORTGAGES

SPREAD BETWEEN YIELDS
ON CONV. &
FHA MORTGAGES

5.44
6.81
6.81
6.29
7.52
6.78
8.62
7.99

6.30
5.80
6.70
6.70
6.40
7.40
6.75
8.35
7.55

.23
.25
.30
.11
-.12
.12
-.27
.40
.13

5.25
4.41
5.82
6.51
5.18
6.79
6.15
8.75
6.91

1,.69
.77
1..16
1,.28
.27
1,.20
.26
1,.08
.13

9.16
9.11
9.07
9.01
8.97
8.90

8.55
8.60
8.60
8.50
8.50
8.45

-.61
-.51
-.47
-.51
-.47
-.45

9.11
8.63
8.48
8.42
8.63
8.34

.05
48
59
59
34
,56

25-YEAR 30-YEAR

1970 - June
July
Aug.
Sept.
Oct.
Nov.
1

2

3

4

6.26
5.43
6.73
n. a.

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

NEW
| SPREADi BETWEEN
j Aaa COR- j YIELDS ON N EW
| BORATE. ; CORPORATE BONDS
j BONDS |
AND
4
1 FHA MORTGAGES
!

CONVENTIONAL
MORTGAGES
3

2

DATE

1959--60 T High
1961-•66 - Low
1966 - High
1967 - High
- Low
1968 - High
Low
1969 - High
Low

1

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




22
TABLE 17: Conventional Mortgage Terms

DATE

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

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

1

EXISTING HOMES
CON- FEES &
LOAN/
TRACT CHARGES EFFEC- MATU- PRICE
(PER
RATE
TIVE
RITY RATIO
(PER ; CENT) RATE (YEARS) (PER
CENT)
CENT)
2
3

r
LOAN
AMT.
($000)
4

1969
Nov.
Dec.

25 .3
25,.4

i 7.97
8.07

0,.96
1,.06

8.13
8.25

8.16
8.23
8.29
18.23
8.28
8.31
8.32
8.35
8.31
8.33
8.25

1,.08
1,.09
1,.11
1.,02
0..98
0..99
1.,01
0.,98
1. 03
1.,05
0.99

8.34 25,.0
8.41 24,.2
8.47 25..0
8.40 24..8
8.45 25..3
8.48 25.,1
8.49 25.,1
8.52 24..8
8.48 25.,2
8.51 25.,1
8.41 • 25.,3 .

72,.8
71..9

24.6
25.0

8.00
8.08

0 .90
0 .93

8.15
8.24

22,.6
22..9

70.4
70.6

20.1
20.8

69..3
71.,8
71.,1
71.,1
71.,7
71.,3
71..5
71.,6
72. 7
72.,4
72.,0

25.1
24.9
25.1
24.5
25.3
25.6
24.9
25.5
25.3
24.8
25.3

8.13
8.23
8.26
8.20
8.18
8.19
8.21
8.25
8.27
8.20
8.17

0,.94
1,.02
0,
0..90
0..94
0..98
0.,95
0.,89
0..88
0.,88
0. 84 .

8.29 22.,4
8.41 22.,4
8.43 22.,6
8.35 22.,8
8.34 22.,8
8.36 23.,0
8.37 23.,1
8.41 23. 1
8.42 22. 8
8.35 . 22.,8
8.31 22. 7

70.3
70.2
70.4
70.4
70.3
71.5
71.5
71.7
71.7
71.5
71.6

20.5
20.4
20.6
20.4
21.1
21.5
21.7
21.4
21.0
20.5 ;
2i.i:

1970
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.r/
Nov.

i
1

Compiled by Federal Home Loan Bank Board in cooperation with Federal Deposit Insurance
Corporation. Data are weighted averages based on probability sample survey of characteristics of conventional first mortgages originated by major institutional lender
groups (including mortgage companies) for purchase of single family homes. Data exclude loans for refinancing, reconditioning or modernization; construction loans to
home-builders; and permanent loans which are coupled with construction loans to ownerbuilders. Related series on conventional mortgage rates only, based on unweighted
opinions of field-office directors of the Federal Housing Administration, are available
somewhat sooner than the results of the FHLBB-FDIC survey, and are included-in Che case
of new home mortgage rates—in Table 16.
Fees and charges--expressed as a percentage of the principal mortgage amount—include
lcan^cornmissions, 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.
Includes fees & charges amortized over a 10 year period in addition to the contract
interest rate.
Derived by FRB.