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.onfidentiol,(F.R.)
DECONTROLLED AFTER SIX MOUTHS

CAPITAL
MARKET
DEVELOPMENTS

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




INDEX
D e v e l o p m e n t s in the Corporate and Municipal Bond Markets
Capital Market Y i e l d s
Capital Market Volume
Stock Market
Mortgage Market

SYMBOLS:

e

Estimate

p

Preliminary

r

Revised

n . a r - N o t available




TABLE 1: Yields, Volume and Reception

WEEK ENDING:

1971 - July

2
, 9
16
23
30

WEEK ENDING:

1971 - July

2
9
16
23
30

YIELDS
MOODY'S
SEASONED
1
NEW ISSUE
Aaa
7.89
7.87
7.82
7.90
n.a.

7.63
7.65
7.64
7.63^
n.a.

YIELDS
MOODY'S
BOND BUYER
SEASONED
SEASONED 20
Aaa
BOND INDEX
5.90
5.70
5.70
5._65
n.a.

6.19
6.06
6.03
5.97
n.a.

CORPORATE BOND MARKET
VOLUME2
PER CENT
GROSS
SOLD BY END
BONDS SCHEDULED
OFFERINGS
OF WEEK
WITHIN 28 DAYS
310
99
238
654
300e

88
86
58
84
n.a.

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

MUNICIPAL BOND MARKET
VOLUME2
PER CENT
GROSS
BONDS SCHEDULED
SOLD BY END
OF WEEK
WITHIN 28 DAYS
OFFERINGS
331
633
347
564
175e

88
86
76
83
n.a.

1,219
916
1,059
829
n.a.

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:

Sec footnotes to Table 3




TABLE 2: Details on Inventories

DATE
.OFFERED

AMOUNT
MIL. $)

|

7/22
7/22
7/22

25.0

General Water Corp.
Ford Motor
Chrysler Fin.
Commonwealth Ed.
Columbia Broad Sys.

100.0
100.0
100.0

7/20
7/15

OFFERED

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

50.0

DATE
| RELEXSED

7/14

7/19

8,, 5 0
7, , 2 5
9 ., 0 0
8, . 0 0
7, , 8 5

A
Aaa
NR
Aaa
Aa

5 yrs,
5 yrs,

,c.
5 yrs
1 0 yrs

85%
85%
85%
30%
95%

CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK
ORIGINAL INCREASE RATING AND ESTIMATED PROISSUER
COUPON
IN YIELD CALL PR0T. PORTION RELEASED
YIELD
150.0
New York Tel.
8.00
7.90
+11
5 yrs.
60%

AMOUNT

INVENTORIES \
MUNICIPALS
BLUE LIST
|
IN SYNDICATE

DATE

8 .,55
7. 19
8 ., 8 8
7 ., 9 5
7 ., 8 5

ESTIMATED PROPORTION SOLD

CORPORATES
IN SYNDICATE

1971 - June 25

603

203 \

149

2

495
499
488
533

91
129
115
152

113
27
116
107

July

9
16
23

N.C. - No call protection.
1
All figures in millions of dollars. Blue List is daily average for week ended Friday,except for latest week
which is daily average of three days ended Wednesday. All other figures are as of Friday.




TABLE 3: High Grade Bond Yields

'

DATE
1969 - High
Low
1970 - High
Low
1971 - High
V Low

NEW
CORPORATE
Aaa1
8.85
6.90
9.30
7.68
8.23
6.76

(12/5)
(2/21)
(6/19)
(12/18)
(5/21)
(1/29)

MOODY'S SEASONED
CORPORATE
Aaa 27
7.84
6.55
8.60
7.48
7.69
7.06

(12/26)
(1/12)
(7/3)
(12/31)
(6/4)
(2/12)

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

BOND
BUYER'S
SEASONED
MUNICIPALS 4

6.97
5.96
7.55
6.17
6.51
5.69

6.90
4.82
,7.12
\5.33
b.23
5.00

(12/26)
(1/24)
(5/29)
(12/18)
(6/18)
(3/23)

z

1971 - June 11
18
x 25

7.93
8.05
7.84

7.66
7.63
7.62

6.32
6.51
6.44

5.87
6.00
6.23

July 2
9
16
23

7.89
7.87
7.82
7.90

7.63
7.65
7.64
7.63

6.44
6.38
6.30
6.39

6.19
6.06
6.03
5.97

1

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.
3
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 series.
2




(12/18)
(1/28)
(5/29)
(12/11)
(6/24)
(3/18)

6
TABLE 4: Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)

GROSS PROCEEDS
1

STATE AND LOCAL 2

CORPORATE

PERIOD
/1971

1970

1969

January
February
March

3,115
3,000
6,075

2,636
1,802
3,539

2,075
2,045
2,098

April
May
June

4,007
3,174
4,100e

3,170
3,909
3,389

2,748
2,076
2,530

July
August
September

2,768
2,274
3,518

October
November
December
1st
2nd
3rd
4th

1971

1st half
Three quarters
Year

! 2,702
| 1,833
! 2,107

1,340
1,214
1,555

1,262
987
538

j 1,888
1 2,106
1 l,900e

1,647
996
1,085

1,801
1,110
737

2,478
1,427
2,427

1,348
1,359
1,758

1,097
808
559

1,933
2,375
2,532

1,924
1,748
2,190

1,280
886
816

7,977
10,468
8,560
11,939

6,218
7,354
6,332
6,840

4,109
3,728
4,465
5,862

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

18,445
27,005
38,944

12,190
ll,281e

1969

3,777
4,182
3,980

Quarter
Quarter
Quarter
Quarter

1970

13,572
19,904
26,744

7,837
12,302
18,164

6,435
8,899
11,881

6,642
5,894e

Excluding finance companies3
1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

Year
1
2
3

6,170
7,037

1

'

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




TABLE 5: New Corporate Security Issues, Type of Issue and Issuer
(In millions of dollars)
GROSS PROCEEDS BY
TYPE OF ISSUE
*
COMMON
BONDS
AND
MEMO:
PUBLICLY PRIVATELY PFD.
ISSUES INCLUDED
MFG.
PLACED
FOREIGN | CONVERTIBLE
OFFERED
STOCK
'

QUARTER
OR
MONTH

TOTAL

1970 - II

10,468

6,994

1,282

2,190

III
IV
1971 - I
II ± 1

8,560
11,938
12,190
11,281

5,987
7,827
8,369
6,515

914
1,421
1,516
1,618

1,659
2,690
2,306
3,145

135
83
226
84
n.a.

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

3,389
2,768
2,274
3,518
3,777
4,181
3,979

1,931
1,831
1,731
2,425
2,390
3,001
2,436

436
320
205
389
304
283
834

1,021
617
338
704
1,083
898
709

1971 - Jan.
Feb.
Mar.

3,115
3,000
6,075

2,033
2,201
4,135

594
275
647

489
524
1,293

4,007
3,174
4,100

2,LLJ
2,097
2,300

473
445
700

1,415
630
1,100

Apr.
May
. ji/june
1

\
GROSS PROCEEDS BY
TYPE OF ISSUER
PUBLIC
UTILITY

710
287
737
824
1,362

2,445
2,314
3,169
3,794
3,281

2,812
2,714
3,406
3,197
2,627 .

26
68
11
4
56
11
159

82
107
59
121
388
184
165

939
638
682
994
1,006
1,107
1,056

43
3
38

99
168
557
384
253
725

113
35
n.a.

1

OTHER
ISSUERS1

2 ,162
868
1 ,346
1 ,606
876

3,048
2,663
4,020
3,594
4,496

1,103.
843
630
1,241
1,101
1,350
955

353
144
279
445
371
693
282

994
1,143
682
838
1,300
1,033
1,687

716
661
2,417

676
1,069
1,452

391
683
532

1,332
587
1,675

1,115
766
1,400

1,265
587
775

269
407
200

1,358
1,413
1,725

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




C0MMUNI'CATIONS

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

July 5 thru July 23, 1971
ISSUER

TYPE 2

AMOUNT
(MILLIONS
OF

DOLLARS)

MATURITY

COUPON
RATE OR
NET INTEREST COST

OFFERING
YIELD

MOODY'S
RATING

Corporates
Penna. Pwr. & Lt. Co.

]um Pref.
Stk.
40.0
Jr.debs w/w
30.0
Zap. Stk.
16.6
1st. Mtg.
15.0
30.0
1st. Mtg.
>ebs.
25.0
150.0
1st mtg
15.0
1st mtg
Conv. pref 1,375.0
Com. stk
35.1
22.0
3om. stk
15.8
Benf int. \
Debs
50.0

Carrier Corp.
Quaker St. Oil Refining Corp.
Washington Gas Lt. Co.
Wisconsin Pwr. & Lt. Co.
American Century Mtg. Inv.
New York Telephone Co.
Indiana Gas Company
* AT&T
Duquesne Light Co.
Cartridge T.V. Inc.
property Capital Trust
C.B.S.
Alza Corp.
Cum Stk. w/w 18.0
Commonwealth Edison Co.
1st Mtg.
100.0
General Waterworks Corp.
Lst Mtg.
25.0
International Harvester Cred Corp )
i
iebs
50.0
Trans World Airlines, Inc.
2om. Stk.
37.9
Echlin Manufacturing
.F.
15.0
Flintkote Co.
)ebs
40.0
Braniff Airway, Incorp.
Loan Certf.
17.4
Guardian Mtge Investor
Debs w/w
30.0
McDonald Corp.
Conv Debs
25.0
Alabama Pwr Co.
lst Mtg.
85.0
South Carolina & Gas Co.
22.0
3um Stk
Joy Manufacturing Co.
]om Stk
21.9
American Continental Homes, Inc. ]onv Sub Debs 15.0




1996

8.13

8.25

A

1996
2001
1991
2008
1996

8.38
8.00
6.75
7.96
8.20

8.25
8.00
6.75
7.90
8.30
8.00

A
Aa

2001

7.85

7.85

A
V

2001
1996
1991

8.03
8.50
8.63

7.95
8.55
8.63

Aaa
A

1991
1996
1987
1986
1996
2001

5.20
8.20
11.13

5.20
8.20
11.13

—

1991

—

4.50
8.50

'

—

4.50
8.40

—

7.00

Aaa
A

Ba
A
w—
Ba
A
--

7.00

.

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

ISSUER

TYPE

2

• AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

COUPON
RATE OR
NET INTEREST COST

•

•

MOODY'S
RATING

Corporation
Chrysler Financial Corp.
Ford Motor Co.




totes (5 yrs)100.0
totes
100.0

X

1976
1977

9.00
7.20

8.88
7.19

'

,

)

•
.

9

/
/ •.

OFFERING
YIELD

:

Aaa

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

.

ISSUER
State and Local
Texas
Gloucester Co Server Auth, N.J.
Cook Co. HSD #214, 111.
Arlington Hgts & Mt Prospect S/D
#214, 111.
Oregon, State of
Indianapolis, Ind.
Florida, State of
Ohio Pub Fac Comm.
Louisville & Jefferson Co Metro
Swr Dlst, Ky.
Maryland, State of




TYPE 2

AMOUNT
(MILLIONS
OF
DOLLARS)

July 5 thru July 23, 1971

MATURITY

G.O.
Rev.
G.O.

12.5
20. 0
10.5

1976-1991

G.O.
G.O.

COUPON
RATE OR
NET INTEREST COST

MOODY'S
RATING

3. 90-5.50
4.75
4. 10-5.00

Aaa

A
Aa

5.73
6.17
6.07

,10-5.00
4,
4, 20-5.75/
6.10
3,
,90-6.00
3,
.40-6.50
3,
,70-6.40

6.05
4.97

3 .70-6.25
3 .07-5.30

A
Aaa

—

——

1975-1981

4.88

10.
,5
60. 0

1975-1981
1976-1989

4.88
5.45

G.O.
Rev.
Bds.

12,
,0
25,
.0
50,
,0

1975-2001
1972-1996
1972-1996

Rev.
G.O.

30,
,0
.3
79;

1973-2001
--

OFFERING
YIELD

—
——

——

A
Aa

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

,

ISSUER'

TYPE

2

AMOUNT
(MILLIONS

OF
DOLLARS)

MATURITY

COUPON
I
RATE OR
J .OFFERNET INTER-• 1 11X,
EST COST
| YIELD

11

MOODY'S

RATING

State and Local
70.0
1972-2001
3.30-6.40
Bds.
5.79
Aa
Penna, State of
2012
357.1
7.58
5.50-7.80
Baa-1
G.O.
New York
125.0
1972-2019
5.43
3.40-6.20
*Massachu8ett8
G.O.
Aa .
25.0
1972-91
6.48
4.25-7.00
Baa
Boston, Mass.
G.O.
-—
6.18
1973-2000 .
17.0
Delaware Co. Coram Coll Auth, Pa. Rev.
• •*"
-6.20
1972-1985
3.50-5.70
16.1
G.O.
Pueblo, Colo.
--5.00-6.75
1974-1981
3.5
Rev.
Port of Oakland, Calif.
»8.00
16.3
-Rav.
Port of Oakland, Calif.
1972-1995
5.58
3.40-5.90
15.0
G.O.
Santa Ana Unified S/D, Calif.
1973-2000
7.07
4.25-7.20
Baa
2.7
G.O.
Murray State University, Ky
3.40-6.00
Aa
10.8
1972-1991
Bds.
Gloucester, Mass.
6.48
3.50-6.90
1973-1991
55.0
A
Rev.
Chicago Bldg. Commission
1972-1981
. 4.19 N.R.
A-l
10.0
G.O.
Houston ISD, Texas
6.92
1973-2004
4.10-7.10
15.0
Rev.
A
Michigan St. Housing Dev Auth
6.92
4.40-7.00
1974-2015
25.0.
A
Rev.
Michigan St. Housing Dev. Auth
Baa
1973-2000
7.08
4.25-7.20
12.5
Rev. '
Murray State University Ky.
5.36
3.75-6.30
1974-1996
14.1
A
G.O.
.Oklahoma City
4.15-5.85
Aa
16.0
1972-1991
G.O.
—
Muskegon Co. , Mich.
Other
HUD
Bds.
72.0
1972-2011
5,71
3,10-5.80
Aaa
HUD
Bds.
99.0
2007-2011
3.25-5.80
5.71
*
Rights offering.
1
Includes corporate and other security offerings of $15 million and over;
State and local security offerings of $10 million and over.
2
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.
3
Includes foreign government and International Bank for Reconstruction and
Development issues and non-quaranteed issues by Federal Agencies.




22

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

ISSUER
|

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

Corporate

City Investment Co.
Gulf Life Holding Co.
; Philadelphia Elec. Co.
| National Medical Enterprises
Inc.
; Diamond State Telephone Co.
Gen'1 Portland Cement Co.
*Interlake Inc.
Pepsico Inc.
: First Wisconsin Bkshares
j Valu Vend Credit Corp.
| Cleveland Elec. 111.
< Monumental Corp.
t Beneficial Corp.
V Beneficial Corp.
, Microdot Inc.
Central Tel & Util Corp
; General Tel Co. of the S.E.
. Continental Can Co.
Genstar Ltd.
Bank of California
j Equimark Corp
1
Pub Serv. Co. of N. Mexico
GAC Properties Credit Inc.
*Hall Craft Homes Inc.
Indiana Bell Telephone Co.
Louisville Gas & Elec. Co.
| Dayton Pwr & Light Co.
• Dayton R*r & Light Co.
| Jersey Central Pwr & Light Co
j Consumer Pwr Co.
Public Serv. Elec & Gas Co.
i Public Serv. Elec & Gas Co.
^•Cincinnati Bell Inc.
; Arkansas R»r & Light Co.
1 Penna Elec Co.
1 Arkansas Elec. Co.
I Baltimore Gas & Elec. Co.
4 Southern Bell Tel. Co.
|Appalachian Pwr Co.
1 Hawaiian Tel. Co.
1 Florida Pwr & Light Co.
v Kansas-Nebraska Nat. Gas Co.
? Florida Gas Co.
VEPCO
VEPCO
• Southwestern Bell Telephone




50.0
25.0
80.0

July
July .
July

26
26
26

Debs
Debs
Debs
Debs
Conv debs
Debs
Debs
Com stk
Notes
Bonds
Bonds
Notes
1st mtg
Bonds
Notes
Debs
Com debs
Debs
1st mtg
Debs
Debs
Debs
Debs
1st mtg
Pref stk
1st mtg
1st mtg
Debs
Debs
Debs
Pfd stk
Debs
1st mtg
1st mtg
Debs
1st mtg
Bonds

15.0
15.0
22.0
50;0
50.0
50.0
25.0
50.0
20.0
25.0
50.0
20.0
20.0
40.0
60.0
25.0
20.0
15.0
20.0
50.0
15.0
100.0
100.0
45.0
20.0
25.0
120.0
75.0
85.0
50.0
15.0
20.0
30.0
60.0
175.0
35.0
20.0

July
July
July
July
July
July
July
July
July
July
July
July
July
July
July
July
July
July
July
July
August
August
August
August
August
August
August
August
August
August
August
August
August
August
August
August
August

26
27
28
28
29

1st mtgS.F^debs
Conv debs
1st mtg
Com stk
Debs

100.0
15.0
25.0
50.0
80.0
200.0

30
August
August
August
September 8
September 8
September

Debs
Debs
1st mtg

2
3
3
5
5
10
10
17
17
17
19
19
19
23
24
25
26

TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury).
A s
o f
J u l y
2 6 ,

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
.
DOLLARS)

I 9 7 1

APPROXIMATE DATE
OF OFFERING

State and Local

Milwaukee, Wise.
New Jersey Highway Aiith
Oakland Co. Mich.
Biloxi, Miss
Baton Rouge, La
East Baton Rouge Parish, La
Monroe Co., N.Y.
N.^Y. State Dorm Authority
Houston, Texas
Middlesex Co. N.J.
Cleveland, Ohio
Memphis, Tenn.
Detroit City Sch. Dist
East Bay MUD, CAL
Texas Wtr.. Dev. Bd.
Los Angeles rWAP
Louisiana Stadium Exp. Dist.
New York St. Housing Finance
Agency
Norfolk Port & Indust. Auth Va.
Ohio, State
South Carolina Pub Ser

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

15.0
80.0
12.2
69.0
15.1
15.0
22.1
26.9
26.5
12.7
15.0
29.0
22.9
12.0
25.0
39.0
113.0

July
July
July
July
July
July
July
August
August
August
August
August
August
August
August
August
August

27
27
28
28
28
28
28
3
4
5
10
10
10
10
11
11
11

Bond
G.O.
G.O.
Rev.

166.0
100.0
100.0
100.0

August
August
August
August

18
25
26

G.O.
Rev.

40.0
45.0

Other
Puerto, Rico
The Guam Economic Dev. Auth

29
July
September 1

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.




u

STOCK PRICES AND VOLUME
STOCK PRICES 1 NYSE INDEX 3 -

DJ.INDUSTRIALS

TRADING VOLUME 4
AMEX 4

1969 - High
Low

50.32
49.31

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

(1/3) 16.5
(7/29) 8.6

(3/29) 8.0
(8/29) 3.6

1970 - High
Low

52.36
37.69

(1/5) 842.00 (12/29 27.02
(5/26) 631.16 (5/26) 19.36

(1/8) 18.5
(5/2-7) 7.8

(12/4)
(8/14)

1971 - High
Low

57.76
49.73

(4/28) 950.82
(1/4) 830.57

(4/28 26.68
(1/4) 22.72

(4/28) 22.1
(1/4) 12.5

(2/12) 6.7
(7/2)

7.1
1.8
2.9

June

4
11
18
25

55.95
55.80
54.63
54.10

922.15
916.47
889.16
876.68

26.07
25.90
25.38
25.18

15.7
13.3
13.7
13.3

4.3
3.3
3.4
3.2

July

2
9
16
23

55.18
55.76
54.97
54.82

890.19
901.80
888.51
887.78

25.52
25.83
25.61
25.44

12.5
12.9
13.4
12.2

2.9
3.4
3.2

1.

Figures other than highs and lows are Fridays only.
Highs.and lows are 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
In recent years, however abbreviated trading to the extent, and over the time
Days/
°»7
Through:
Week

2.8

January 3", 1969
July 7, 1969
January 2, 1970

July 3, 1969
December 31, 1969
May 1, 1970

3.

12/31/65 - 50

4.

Average dollar value of shares listed.




4 .
4-1/2

5
5

27-1/2 hours per week.
periods, shown below:
Hours/
Week
20
22-1/2
25

(1/31)
(11/21)
(1/2)
(8/14)

(2/12)

(7/2)

15
TABLE 9: Security Credit
/•

END OF PERIOI
Outstanding:

CREDIT EXTENDED TO
MARGIN CUSTOMERS BY:
BROKERS1 | BANKS2 | TOTAL

.1970 - May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

.4,160
3,860
.3,800
3,810
.3,920
4,010
.4,010
4,030

2,290
2,290
2,290
2,300
2,330
2,270
2,320
2,330

6,450
6,150
6,090
6,110
6,250
6,280
6,330
6,360

1971 - Jan.
Feb.
Mar.
Apr.
-May

,4,000
4,090
4,300
4,530
4,620

2,300
2,330
2,360
2,340
2,340

6,300
6,420
6,660
6,870
6,960

- 40

-240
-300
- 60
20
140
30
50
30

CUSTOMERS'
NET DEBIT
BALANCES

5,433
5,281
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)

NET CREDIT
CUSTOMERS' NET EXTENDED BY
FREE CREDIT
BROKERS AND
DEALERS 3
BALANCES
2,222
2,009
(5)2,180
2,083
2,236
2,163
2,197

3,211
3,272

2,286

(4)
(4)
(4)
(4)
(4)
(4)

2,452
2,743
2,798
2,660
2,550

(4)
(4)
(4)
(4)
(4)

:

Change in
Outstanding:
1970 - May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1971 - Jan.
Feb.
Mar.
Apr.
May

j
' -200

-300
- 60
10
110
90
- . -

20
- 30
90
210
230
90

-

-

-

-

10
30
- 60
50
10
- 30
30
30
- 20

- 60
120
240
210
90

-552
-152
—

—

-

-

-

-

—

—

- -

-

-

-

—

-

- 26
-213
. 171
97
153
- 73
34
89
166
291
55
-138
-110

-513
- 61

;
i

- - - -

; i

\
!
n
|

l
— —
— —
——

:

jt\

i
*f
f

!
•
-t

l.

Margin debt, as reported by the New York Stock Exchange. Although margin debt
untfil 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."
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

3

Digitized forregulated or not.
FRASER


16

TABLE 10: Savings Flows at Nonbank Depositary Intermediaries

($ millions)

DATE

MUTUAL SAVINGS BANKS
SAVINGS & LOAN ASSOCIATIONS
REGULAR DEPOSITS 3
NET
NET
SHARE CAPITAL
NEW
ANNUAL
ANNUAL
NEW
2
MONEY
GROWTH
NET
NET
GROWTH
MONEY2
1
FLOW
RATE 1
FLOW
RATE
4,203
2,549
4,466

1968
1969
1970
1970 - April
Hay
June

801
800
900

1971 - January
February
March
April r/
May j>/
June £/

885
939
1,287
1,176
776
783

1,143
-763
936

- -

, 6
326
504

1971 - April r/
May £/
June 2./

7.0
4.0
6.7

-136
224
-133

Not Seasonally Adjusted
6.0
7,432
2,738
4,200
3.2
-1,003
, 8.2
5,295
11,173
207
753
1,801

651
680
174

2,211
2,162
3,028

—

—

-

-

3,614
2,472
3,376
2,996
1,998
2,088

. — —

s

\ * "
*

- - -

-

.—

—

188
705
280
2,092
2,069
1,344

TOTAL
DEPOSITS
ANNUAL
NET
GROWTH
RATE 1
FLOW

NET
NEW
MONEY 2

6.3
3.4
7.7

3,881
-1,766
6,231

11,635
6,749
15,639
213
1,079
2,305
3,012
2,962
3,928

. .

52
929
147

- —
-

-

-2,743
- - - • 2,749
1,518

Seasonally Adjusted

\
2
3

15.5
15.8
21.2
19.0
12.4
12.4

— —
-

-

- -

29.8
19.8
26.7
23.1
15.1
15.6

— —

— —
- - .
1
—' —

4,504
3,411
4,663
4,173
2,774
?,871

25.1
18.5
24.9
21.8
14.2
14.6

— —
- -

-

-

-

-

-

Annual growth rate for monthly data is the annualized monthly percentage increase in deposits.
Net New Vloney 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.
SOURCE: National Association of Mutual Savings Banks and Federal Home Loan Bank Board.




7

TABLE 11: Mortgage Commitments at Selected Thrift Institutions

DATE

TOTAL

OUTSTANDING COMMITMENTS
|
ALL
MUTUAL
1
SAVINGS
TOTAL
SAVINGS &
BANKS
LOAN
(N.Y. STATE)
ASSOCIATIONS

1

NET CHANGE
ALL
SAVINGS &
LOAN
ASSOCIATIONS

MUTUAL
SAVINGS
BANKS
(N.Y. STATE)

(Billions of Dollars, Seat onally Mjusted) 1/
1970 - April
May
June
f
July

7.8
8.0
8.2
8.6

5.4
5.8
6.1
6.5

2.4
2.2
2.1
2.0

-.08
.20
.17
.37

.21
.34
.26
.41

-.13
-.14
-.09
-.04

Aug.
Sept.
Oct.
Nov.
Dec.

9.8
8.9
9.3
9.6
10.1

6.8
7.1
7.5
7.8
8.1

2.0
1.8
1.8
1.8
2.0

.21
.25
.30
.35
.51

.29
.36
.37
.34
(.28

-.08
-.11
-.07
.01
.23

1971 - Jan.
Feb.
Mar.
April
May

10.4
11.2
12.6
13.8
15.4

8.3
8.9
10.1
11.1
12.3

2.1
2.3
2.5
2.8
3.1

.25
.80
1.36
r.30
1.54

.20
.60
1.16
1.01
1.22

.05
.20
.20
.29
32

1

.

'

Based on data from Federal Home Loan Bank Board and Savings Banks Associations of
New York State. Data for savings banks and S&L's include a minor amount of nonresidential commitments. All 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. • '




16
TABLE 12: Net Change in Mortgage Holdings

1

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

TOTAL
INCLUDING
FNMA-GNMA

TOTAL

20,016
23,781
24,189
21,822

18,219
21,273
19,814
16,913

4,639
6,677
5 *404
2,462

3,153
2,787
2,682
1,845

7,520
9,350
9,676
10,288

2,907
2,459
2,052
2,318

1970 - Mar.
:
Apr.
|
May

1,154
1,421
1,621

625
944
1,243

49
125
187

153
160
144

198
486
723

225
173
189

11971 - Mar.
J
Apr.
May

2,690
2,810

2,690
2,920

DATE

Not Seasonally Adjusted
1967
1968
1969
1970 e/

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

1,347
1,485
1,749
2,083
1,917
2,192
2,128
2,049
2,604
1,860
1,997
2,888
2,739

840
1,050
1,281
1,575
1,509
1,828
1,808
1,820
2,504
1,893
2,084
2,896
2,818

346
500
256
500
315
300
Seasonally Adjusted
157
76
155
65
189
81
142
165
175
268
245
328
138
295
176
224
250
312
175
383
217
345
380
588
283
453
325
240

1,765
2,144
2,182

79
20
n.a.

416
631
789
1,055
983
1,104
1,175
1,289
1,710
1,311
1,425
1,774
2,044
2,092

191
199
222
213
83
151
200
131
232
24
97
154
38

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 84 per cent of the net increase estimated for all holders in 1970.




19
TABLE 13: Net Increases in Mortgage Debt Outstanding

Billions of dollars, SAAR-QUARTER

TOTAL

RESIDENTIAL3

1- to 4- MULTIFAMILY
FAMILY

COMMERCIAL

MULTI-AND
COMMERCIAL

FARM

1966 - II
IV

18.6
15.1

10.9
9.1

8.3
7.0

2.6
2.1

5.5
4.1

8.2
6.0

2.2
1.8

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

7.3
8.4
8.8
8.4

1.8
1.8
2.5
2.8

1968 - I
II
III
IV

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

1969 - I
II
III
IV

31.3
28.9
26.5
25.1

25.0
21.5
19.3
18.3

18.6
16.8

4.4
4.7

6.2
5.2

10.4
10.1

2.2
2.2

14.6
13.0

1:1

io0:?

1 1

1970 - I
II
III
IV

20.2
22.7
28.5
30.5

13.8
16.9
21.2
21.6

11.5
14.9
15.1

5,0
5.4
6.3
6.4

4.9
4.3
5.2
6.9

9.9
9.7
11.5
- 13.3

2.1
2.1

1971 - Ip

32.9

22.6

15.6

7.0

8.3

15.3

2.0

8.8

± 1

2.2

1.8
178

1.5
1.5

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 mainly by Federal Reserve.
May differ somewhat from related flow of funds series mainly because of more
aggregative type of seasonal adjustment.
Residential mortgage debt includes nonfarm only and is sum of 1-to 4- family
and multifamily mortgage debt combined.




TABLE 14: FNMA Weekly "Auction" Results

WEEK
ENDED
Apr. 12
26

IMPLICIT YIELD 2 (per cent)
COMMITMENTS IN $ MILLIONS
ACCEPTED
1-YEAR 1
1-YEARfl
90690TOTAL
TOTAL
6& OVER
MONTH
DAY
MONTH & OVER
OFFERED
DAY
126.9
687.2

54.5
313.9

39.8
154.0

9.4
126.6

5.4
33.4

7.32
7.43

7.45
7.54

7.53
7.57

May

10
24

1,168.0
785.7

236.8
151.6

145.8
44.6*

71.3
84.4

19.7
22.6

7.57
7.95

7.68
7.97

7.74
8.03

June

1
14
28

322.4
664.4
539.3

146.6
191.2
262.2

77.1
133.7'
191:8

57.8
47.3
60.3

11.6
10.2
10.4

8.05
7.91
7.92

8.18
8.15
8.22

8.16
8.22
8.28

July 12

606.0

241.1

161.8

58.2

21.1

7.98

8.23

8.31

Note: Under the FNMA auction system, approved sellers of Governmentunderwritten mortgages bid for FNMA forward purchase commitments, B i d s
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 whi^ch 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
15 years for 30-year Government-underwritten mortgages. Yields shown
are gross, before deduction of 38 basis points fee paid by investors
to servicers.




TABLE 15\ Private Housing Starts and Permits

STARTS
SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE
1,393
1,603
1,425
1,509
1,583
1,693
2,054

835
827
838
881
890
934
1,240

558
776
587
627
693
759
814

1,725
1,754
1,959
1,912
May
1,959
June £./ |l,982

946
985
1,048
1,098

779
769
911
809
839
817

1970 - June
July
Aug.

Sept.
Oct.
Nov.

Dec.
1971 - Jan.
Feb.
Mar.
Apr.

1,120

1,165

UNADJUSTED
TYPE OF FINANCING

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2

135.2
140.8
128.7
130.9
140.9
126.9
121.4

40.7
43.3
34.1
34.3
40.4
33.7
63.2

5.1
5,3
5.6
5.3
5.8
5.5
5.7

89.4
92.1
87.7
91.3
94.7
87.2
52.5

1,285
1,309
1,378
1,388
1,523
1,487
1,768

110.6
102.2

32.2
27.3
33.4
44.6
40.7

4.6
4.7
6.9
8.4
8.3

72.8
68.4
127.6
14841
147.9

1,635
1,563
1,627
1,638
1,927
1,817

167.9

201.1
196.9
192.3

Total starts -are Census estimates including farm for both permit-issuing and
now-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
t
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 a%e not strictly comparable in concept or timing; other starts include both units financed by conventional mortgages and units without mortgages.
Building permits are for 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.




TABLE 16: Mortgage and Bond Yields

FHA
MORTGAGES

DATE

30-year

2

CONVENTIONAL
MORTGAGES
3

SPREAD BETWEEN YIELDS
ON CONV. &
FHA MORTGAGES 5

1

NEW
Aaa CORPORATE
BONDS
4

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES 6

1968 - High
Low
1969 - High
Low .

7.52
6.78
8.62
7.99

7.40
6.75
8.35
7.55

.02
-.27
-.13
-.40

6.79
-6.15
8.75
6.91

1.20
.26
1.08
-.13

1970 - High
Low

9.29
8.40

8.60
8.30

-.10
-.74

9.11
7.80

.99
.01

7.95
7.75
7.60
7.55
7.65
7.70

.28
.18
-.10
-.19

7.24
7.28
7.46
7.57
8.01
7.90

-.14
-.20
-.26
-.01

1971 - Jan.
Feb.
Mar.
Apr.
May
June

'
' ——
•

/

7.32
7.37
7.75
7.89

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

2

Based on FHA-field-office opinions about average bid prices in the private
secondary market for new-home mortgages for immediate delivery. Data shown
are for 30-year mortgages with minimum downpayments, and weighted by probable
volume of transactions. Yields computed by FHA, assuming prepayment period of
15 years for 30-year mortgages.
Based on FHA-field-office opinion on typical interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring office cities.
See note for Table 1.
.
.
,
s
Yield spread equals conventional mortgage rate less FHA secondary market yieJ-d*
Yield spread e q u a l s F H A secondary market yield less new Aaa corporate bond yield.

3
4
5
6




23
TABLE 17: Conventional Mortgage Terms

NEW HOMES

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

8.28
8.31
8.32
8.35
8.31
8.33

8.26
8.20
8.03
7.74
7.52
7.37
7.35

0.98
0.99

25.3
25.1
25.1
24.8

0.98
1.03
1.05
0.99
1.07

8.45
8.48
8.49
8.52
8.48
8.51
8.43
8.38

25.1
25.3
25.8

0.92

8.18

25.8

1.01

1.00
0.83
0.73
0.71

7.91
7.66
7.49
7.47

25.2

26.2
25.9
26.3
26.0

1

EXISTING HOMES
CON- FEES &
LOAN/
CHARGES EFFEC- MATU- PRICE
TRACT
PRICE LOAN
(PER
RATE
RATIO AMT.
TIVE
RITY RATIO
CENT) -JIATE—IM(PER ($000) (PER
(YEARS) (PER
CENT)
CENT)
CENT)
2
4
LOAN/

71.7
71.3
71.5
71.6
72.7
72.4
72.1
73.8

2 5 . 3 8.18
25.6 8.19
2 4 . 9 8.21
25.5 8.25
25.3 8.27
2 4 . 8 8.20
2 5 . 2 8.18
2 5 . 8 8.12

73.3
73.9
73.7
73.6
73.6

26.4 7.94
26.2 7 . 6 7
26.0 7 . 4 7
26.2 7 . 3 4
26.6 7 . 3 4

0.94
0.98
0.95
0.89

0.88
0.88

8.34
8.36
8.37
8.41
8.42
8.35
8.32

0.85
0.85

8.26

0.82

8.08

0.79
0.77
0.75
0.69

7.80
7.60
7.47
7.45

22.8
23.0
23.1
23 1

22.8
22.8
22.7
23.3
23.5
24.0
24.1

24.2
23.9

70.3
71.5
71.5
71.5
71.7
71.5
71.5
71.9
72.5
73.1
73.5
73.6
73.0

LOAN
AMT.

($000:

21.1

21.0 t

2:f
??
2 1 - 7

Includes fees & charges amortized over a 10 year period in addition to the contract
interest rate.
Derived by FRB.




R

22.Or

22.5;
23.0
23.1
23.3 :

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

6

21.5 i
21.7 &
21.4 t

"i

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