Full text of H.16 Capital Market Developments : June 1, 1970

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

DECONTROLLED AFTER SIX MONTHS
L.5.8 Confidential (F.R.)

1970

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 Yields

8-13

Capital Market Volume

14-17

Stock Market

18-33

Mortgage Market

SYMBOLS:
Estimate
Preliminary
Revised
Not available




3

TABLE 1: Yields, Volume and Reception

YIELDS
MOODY'S
— SEASONED
NEW ISSUE 1
Aaa

WEEK ENDING:

1970 - Apr.

3
10
17
24

May

1
8
15
22
28
June 5]/

8;55 •
8.30
8; 65
8.75

7; 85
7.80
7.82
7.83

725
551
373
317

8.91
8.98
9.10
9.05
9.20
n.a.

7.92
7.99
8.09
8.16
8.24

195
345
610
284
225e
150e

YIELDS
BOND BUYER
SEASONED 20
' BOND INDEX

WEEK ENDING:

MOODY'S
SEASONED

1970 - Apr.

3
10
17
24

5.90
6:10
6.25
6.47

6.11
6.33
6.50
6.73

1
8
15
22
28
5g/

6.50
6.55.
6.7Q
6,74
6.80
n.a.

6.79
6.89
6.96
7.02
7.12

May

June

CORPORATE BOND MARKET
VOLUME,2
PER CENT
GROSS
SOLD BY END
BONDS SCHEDULED
OFFERINGS
OF WEEK
WITHIN 28 DAYS
95
68
87
99
99
100
97
62 '
96
n.a.

MUNICIPAL BOND MARKET
VOLUME2
PER CENT
GROSS
SOLD BY END
OF WEEK
OFFERINGS
264
42.9
473
. 398

685
444
448
733
2,717
2,636*
2,385*
1,044
819
n a

--

BONDS SCHEDULED
WITHIN 28 DAYS

63
88
78
73

1149
931
1047
649

196
113

77
68

530
624

319
250
249
lOOe

70
63
86

449
508
308
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:

See footnotes to Table 3

* AT&T rights offerings included in May estimate.




TABLE 2: Details on Inventories
-CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK

DATE
OFFERED

AMOUNT
(MIL. $)

So. Nat. Gas
Cleveland Elec. Ilium.
Columbus & So. Ohio Elec.

60.0
75.0
30.0

5/27
5/26
5/14

ORIGINAL RATING AND
YIELD CALL PROTECTION

9.88
.9.00
9.00

9.24
8.70
8.75

A
5 yrs
Aaa 5 yrs.
Aa 5 yrs

5/26
5/27

150.0
45.0

New York Tel.
Ohio Edison

INVENTORIES 1
MUNICIPALS
BLUE LIST
|
IN SYNDICATE

DATE

9.25
9.25

9.05
9.05

+20
+24

557

154

36

May

541
457
463
499
461

116
90
128
184
78

24
o
17
108
9

.

\

99%
90%
98%

f

:

Aaa 5 yrs
Aaa 5 yrs

45%
70%

CORPORATES
IN SYNDICATE

1970 - April 24.
1
8
15
22
?9£/

ESTIMATED PROPORTION SOLD

CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST MEEK
ORIGINAL INCREASE RATING AND ESTIMATED PROAMOUNT
COUPON
ISSUER
IN YIELD CALL PROT. PORTION RELEASED
YIELD

DATE
OFFERED I RELEXSED
5/20
5/21

COUPON

ISSUER

,

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.




BONDS IN SYNDICATE
Friday figures

Millions of dollars

CORPORATE BONDS IN SYNDICATE

200
100

MUNICIPAL BONDS IN SYNDICATE
300

200
100

SEPT.




DEC.

MAR.

JUN.

SEPT.

DEC.

•

\MAR.

JUN.

SEPT.

DEC.

V

TABLE 3: High Grade Bond Yields'

DATE

NEW
CORPORATE
Aaa 1

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 (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 (12/5)
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)

1970 - High
Low

9.20 (5/29)
8.20 (2/27)

8. 21 (5/2 9)
7.79 (3/6)

7 . 55 (5/29)
6.60 (3/6)

7.02 (5/29)
5.95 (3/12)

8.91
8.98
9.10
9.05
9.20

7.92
7.99
8.09
8.16
8.21

7.08
7.15
7.12
7.17
7.55

6.79
6.89
6.96
7.02
7.12

1970 - May

%
8
15
22
292/

1

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 series.




HIGH GRADE BOND YIELDS

NEW CORPORATE Aaa

MOODY'S
CORPORATE Aaa

U S GOVT. 20-YR.
CONSTANT MATURITIES
BOND BUYER MUNICIPAL

1966
,\


t


i

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
January
February
March
April
May
• June

1969

STATE AND L O C A L 2

1

1968

1970

196 9
1,262
987
538

Quarter
Quarter
Quarter
Quarter

1st half ,
Three quarters
" Year

1,771
1,608
1,799

1,338
1,212
1,499

3,000e
4,100e

2,748
2,076
2,530

1,428
1,866
2,411

1,630
l,000e

2,478
1,427
2,427

2,143
1,432
1,557

1,097
808
559

1,469 L
1,699 I
1,444 :

1,933
2,375
2,532

2,129
1,767
2,054

1,280
886
816

2,230 r,
1,021 t
1,115 •

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

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

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 •

-

7,83le

13,572
19,904
26,744

10,882
16,015
21,965

Excluding finance companies 3
lst/Quarter
2nd Quarter
3rd Quarter
4th Quarter
Year
1
2
3

-

1,178
1,158
1,404

2,075
2,045
2,098

October
November
December
1st
2nd
3rd
4th

196:

2,601
1,830
3,400e

j

6,170
7.037

4,049

1,318
1,143
1,395 ;

. 1,801
1,110
737

•

July
August
"September

.

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 excluding offerings of sales and consumer finance
'companies.
-

Note:

AT&T rights offering included in May estimate.




•

-1

,
i
r

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

QUARTER
OR
MONTH

TOTAL

1969 - I
II
III
IV
1970 - I e/

6,218
7,354
6,332
6,840
8,230 x

2,657
3,411
3,186
3,479
4,968

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

2,076
2,530
2,478
1,426
2,427
1,933
2,375
2,532
2,601
1,830
3,400
3,000

871
1,272
1,279
685
1,222
969
1,164
1,346
1,594
1,068
1,900
2,000

1

1,540
1,673
1,347
1,053
1,092
5101
514
609
259
479
313
226
514
485
292
400
400

GROSS PROCEEDS BY
TYPE OF ISSUER
PUBLIC
UTILITY

OTHER
ISSUERS1

2,023
2,268
1,797
2,307
2,170

215
227
289
115
n.a.

1,355
1,126
750
809
929

1,407
1,773
1,862
1,314
2,671

1,346
1,878
1,544
1,967
2,320

473
432
684
598
511

2,993
3,266
2,243
2,961
2,729

694
744
589
482
726
651
984
672
522
470
1,100
600

28
137
132
122
35
59
8
48
60
33
n.a.
n.a.

463
233
214
167
369
105
303
401
387
249
250
330

569
691
875
362
625
260
453
601
787
371
1,500
800

392
.702
493
507
544
745
622
600
639
540
820
960

197
191
286
126
272
120
201
277
229
226
260
25

915
946
826
433
984
808
1,099
1,054
947
694
820
1,215

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.
-v




COMMUNICATIONS

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

ISSUER

TYPE 'l

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

May 1-May 28, 1970
COUPON
/
, RAT!! OR
• OFFER- MOOHY'.
RAT 1 N(,
KK. I.;THRIN6
Y1 ELD
I ST COST

Corporate
Philadelphia Elec. Co.
Boise Cascade Credit Corp.
Carolina Pwr & Light
Hartford Elec Light Co.
Aluminum Co. of America
Southern Union Gas Co.
Jewel Cos.
General Acceptance Corp.
Columbus & Southern Ohio Co.
National Cash Register
Burroughs Corp.
Monongahela Power Co.
Southern Counties Gas Co.
American Brands
Bethlehem Steel Corp.
Ohio Edison Co
New York Telephone Co.
Northern States Power Co.
^Philadelphia Elec. Co.
*AT8iT
Southern Natural Gas
Dallas, Power & Lig*fit Co.
Cleveland Elec. Illumin.Co.
Dayton Power & Light Co.




1st Mtg.
40.0
Debs.
75.0
Pref. stk.
30.0
1st mtg.
20.0
S.F. debs.
150.0
S.F. debs.
15.0
Com stk.
24.7
Debs.
50.0
Bonds
30.0
Debs. ,
150.0
Bonds
75.0
1st mtg.
15.0
1st mtg.
32.0
Notes
100.0
Debs.
150.0
1st Mtg.
45.0
Ref. Mtg
150.0
1st Mtg.
45.0
1st Reft Mtg.
30.0
Debs w/w
1569.0
Debs
60.0
1st Mtg.
30.0
1st Mtg.
75.0
1st Mtg.
35.0

1976 \
1975

8.50
10.00

8.50
10.00

Aaa
Bbb

2000
1995
1990

9.25
9.00
9.75

9.20
9.10
9.75

Aa
A
A

1990
2000
1995
1975
2000
1995
1975
2000
2000
2010
1974
1976
2000
1976
2000
1975
, 2000

10.25
9.00
6.00
9.00
9.75
9.50
8.88
9.00
9.25
9.25
8.88
8.50
8.75
9.88
9.38
9.00
- 9.50

10.25
8.75
6.00
9.00
9.60
9.50
9.00
9.00
9.05
9.05
8.88
8.50
8.75
9.24
9.20
8.70
9.35

Bbb
Aa
Baa
A
A
Aa
Aa
Aa
Aaa
Aaa
A
Aaa
Aaa
A
Aaa
Aaa
Aa

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

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

May 1-May 28. 1970
COUPON
RATE OR
OFFER- MOODY'S
NET INTERING
RATING
EST COST
YIELD

State & local Government
Kansas City, Kansas
Rev.
Louisiana Stadium and
Exposition District
Rev.
Fulton Co. Ga. Sch«Dist«
G.O.
Oakland Co, Mich.
Bond
Metro. Wtr. Dist. of
Southern California
G . Om
Detroit, Michigan
Rev.
Miami Beach, Florida
Rev.
Mississippi
G.O.
Delaware, State of
G.O.
Connecticut, State of
G.O.
Monroe Co. Com. Sch.
Corp. Bldg., Corp. Indiana 1st Mtg. Rev.
Austin, Texas
Rev. & G ,0.
Massachusetts, State of
G.O.
Puerto Rico Wtr Res. Auth. Rev.
G.O.
Wisconsin, State of
Rev.
University of Texas




22.0

1971-90

16.5
12.0
20.9

Not reoffered
1971-91 6.00
1971-95' 6.71
4.60-7.00
1971-99 7.55-7.57
5.00-7.80

R.R.
A-l
A-l

1980
16.96
1973 -200$ 6,78
1971-95
59
1980
53
1971-90
37
1971-90 6.38

5.40-7.00
5.50-7.75
5.50-7.70
4.90-7.00
4.60-7.10
4.60-6.80

Aa
Aa
Baa
Aa
Aa
Aaa

1971-90 7.23
1972-95 6,56&6.60
1971-2012 B. 53
1972-2000 7.50
1971-2001(5.6967 18
19 71-2000V.41

5.40
4.50-7.20
4.80-7.00
5.25-7.50
i5.00-7.20
14,90-7.60

A
Aa
Aa
A
Aa

100.0
24.0
12.0
20.9
20.0
. 75.0
10.5
11.3
47.4
50.0
69.0
10.0

6.71

4.75-7.10

N.A.

TABLE 6: Large Long-term Public Security Issues for New Capital (contimu d)
(Other than U.S. Treasury) 1
M a y 1-May 28, 1970

ISSUER

- TYPE 2

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

COUPON
|;«
RATE OR
URFERNET INTERi;.(
EST COST
J YIELD

,

Other
Federal Home Loan Bank
FNMA (GNMA guaranteed)

*
1
2
1

3

MOODY'S
RATING

Bonds
Bonds

200.0
250.0

1972
1975

8.15
8.38

8.15
8.38

Bights offering.
Includes corporate and other security offerings of $15 million and over;
State and local security offerings of $10 million and over.
In case of State and local government securities, G.O. denotes g e m raI 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.
Includes foreign government and International Bank for Reconstruction and
Development issues and non-quaranteed issues by Federal Agencies.




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
Ramada Inns
Debs
Central Hudson Gas & Elec. Co, 1st Mtg.
General Telephone of Calif.___ Debs
Lone Star Gas Co.
Debs
Western Massachusetts Elec.
• Company
1st Mtg.
Raybestas-Manhattan, Inc.
Debs.
Kansas City Pwr. & Light Co. 1st Mtg*
Appalachian Pwr Co.
Bonds
New Jersey Bell Telephone Co. Debs
West Penn, Pwr
Bonds
Consumer Pwr Co.
Com. stk.
R.C.A.
S.F. debs
Kansas-Nebraska Natural Gas
Company
Debs
Consumer Pwr Co.
1st Mtg
Washington Natural Gas Co
Bonds
Boston Edison
1st Mtg
Lousivilie Gas & Elec Co.
1st Mtg .
Carolina Pwr & Light Co.
Bonds
Baltimore Gas & Elec. Co.
Bonds
Washington Gas Light Co.
1st Mtg
Avco Corp
Conv debs
Chas6 Manhattan Mtg Trust
Benf. Int.
Chase Manhattan Mtg. Trust
Debs
*ITT
S.F. debs
Florida Pwr & Light Co.
1st Mtg
Scott Paper Co.
S.F. debs
American Airline
Bonds
Brooklyn Union Gas
1st Mtg.
Monogram Industries
Notes
Gamble-Skogmo., Inc.
Cap. notes
*Detroit Edison
Gen & ref mtg
*Detroit Edison
Com. stk.'
Pacific Pwr. & Light
1st mtg




25.0
25.0
70.0
30.0

.

30.0
25.0
35.0
70.0
100.0
25.0
40.0
75.0
15.0
60.0
15.0
60.0
20.0
50.0
40-45.0
20.0
50.0
60.0
40.0
40.0
60.0
100.0
. 78.5
30.0
25.0
20.0
75.0
58.0
25.0

June
June
'June
June

1
1
2
3

June 3
June 3
June 4
June 5
June 8
June 9
June- 10
June 16
June 16
June 17
June 17
June 22
June 23
June 24
June 25
June 29
June
June
June
June
June
June
June
June
June
June
July 1
July 1
July 14

TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury)1
1
AMOUNT
(MILLIONS
APPROXIMATE DATE
ISSUER
TYPE
OF OFFERING
OF
DOLLARS)
State and Local
Alabama, State of
•Winchester, Mass
*Delaware State Highway Dept
Jefferson Parish, La.
*Utica Community Sch Dist, Mich.
Minneapolis -St. Paul, Minn.
Metro Area
*Houston, Texas tndp. Sch Dist
Alaska, State of
Richmond, .Va.
Delaware River Port Auth, N.J.
Prince Georges County, Md.
Massachusetts Bay Transp. Auth
System
Genesee Co., Michigan
Los Angeles, Calif Parking Auth
Tulsa, Okla
Maryland, State of
Detroit, Mich
San Francisco BARTS

.

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

15.0
12.0
17.0
15.7
15.5

June
June
June
June
June

9
9
10
11
15

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

42.0
10.0
12.9
27.0
75.0
35.0

June
June
June
June
June
June

15
16
17
17
17
18

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

65.0
11.2
25.0
23.5
46.8
46.0
50.0

June
June
June
July
July
July
July

24

,

.

6

1
1
7
13

Other
Bonds

TVA

*
l

100.0

June 16

Included .in table for first time.
Includes corporate and other issues of $15 million and over; State and local
Government issues of $10 million and over.
2
Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues of. Federal Agencies.
Postponenments; Texas Eastern Transmission Corp.—50.0 - Market Conditions
Mapco Inc.—23.0 - postponed indefinitely
Johnson Co. Kan—12.9 Rejected bids
State of New York—60.0 -Market Condition
Penn Co.100.0 - — M a r k e t Condition




TABLE 8: Stock Prices and Volume
TRADING1 VOLUME 2

STOCK PRICES1
-

S&P

DATE.

500 3

AMEX 4

D.J. - IND. •

AMEX

NYSE

1968 - High
,
Low

108.37(11/29) 985.21(12/3) 33.25(12/20)
87. 72.(3/5)
825.13(3/21) 21.97(3/25-

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)

1970 - High
Low

93.46(1/5)
69.29(5/2 6)

811.31(1/5) 27.02(1/8)
631.16(5/26) 19,36(5/27)

80.7(2/6)
44.6(3/20)

28.4(1/2)
12.1(4/24)

1970 - Apr. 17
24

85.67
82.77

775.94
747.28

23.35
22.40

50.3
50.0

14.4
12.1

81.44
79.44
76.90
72.25
76.55

717.73
702.22
662.17
700.44

21.99
21.69
21.11
20.06
20.71

56.8
52.9
56.7
59.7
80.7

20.3
17.0
16.1
18.6
27.3

May
-

1
8
15
22
29

733.63

.

1

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

2

1941-43 =-10.

3

Average dollar value of shares listed.

4

NYSE is the New York Stock Exchange; AMEX is the American Stock Exchange.Total
number of shares traded per 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/
From;
Through;
Day
Week
Week
August 8, 1967
January 22, 1968
June 30, 1968
January 3, 1969
July 7, 1969
January 2, 1970




August 20, 1957
March 1, 1968
December 31, 1968
July 3, 1969
December 31, 1969
May 1, 1970

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

Highs and lows are

5
5
4
5
5
5

20
20
22
20
22-1/2
25

15

f

STOCK PRICES AND TRADING VOLUME
AM EX

(Ind.)

Weekly

II II I II II I l

(500)

I I II II II I I I

1280 128

STOCK PRICES
AMEX PRICE LEVEL INDEX

1200 120

1120 112

1040 104

960

96

880 88
800 80

Millions of shares

AMEX TRADING VOLUME (TOTAL FOR WEEK)

NYSE TRADING VOLUME (TOTAL FOR WEEK)

1966

1968

1967




I

1969

1970

TABLE 9: Security Credit

END OF PERIOE

5,570
5,670
5,340
5,170
5,000
4,940
5,040
5,070
4,970

2,760
2,770
2,740
2,700
2,670
2,620
2,570
2,520
2,580

8,330
8,440 .
8,080
7,870
7,670
7,560
7,610
7,590
7,550

8,044
8,474
8,214
7,515
7,019
7,039
7,243
7,111
7,445

1970 - Jan.
Feb.r/
Mar.r/
Apr.j)/
Change in
Outstanding:

4,680
4,570
4,520
4,380

2,430
2,370
2,370
2,330

7,110
6,940
6,890
6,710

6,683
6,562
6,353
5,970

-20
100
-330
-170
-170
-60
100
30
-100

-20
10
-30
-40
-30
-50
-50
-50
60

-40
110
-360
-210
-200
-110
50
-20
-40

-274
430
-260
-699
-496
20
204
-132
334

-271
7
1
-302
-206
2
174
-140
190 :

-290
-110
-50
-140

-150
-40

-440
-170
-50
-180

-762
-121
-209
-383

-177
-163
-22
-195

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

1970 - Jan.
Feb.r/
Mar.r/
Apr.])/

2
3

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

CUSTOMERS'
NET DEBIT
BALANCES

1969 - Apr.
May
June
July
Aug.
. Sept.
Oct.
Nov.
Dec.

1969

1

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

--

-40

£

!

3,077
3,084
3,085
2,783
2,577
2,579
2,753
: 2,613
2,803

4,967
5,390
5,129
4,732
4,442
4,460
4,490
4,498
4,642

2,626
2,463
2,441
2,246

4,057
4,099
3,912
3,724

-

-57
423
-261
-397
-290
18
30
8
144
-585
42
-187
-188

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)

DATE

TOTAL
DEPOSITS
ANNUAL
NET
GROWTH
RATE 1
FLOW

2,376
1,143
-747

Not Seasonally Adjusted
10,649
9.4
6,129
7,399
6.0
2,738
4,020
3.1
-1,003

15,731
11,607
6,371

9.3
7.1
4.0

331
642
-197

1969 - Feb.
Mar.
Apr.

1969 - Nov.
Dec.

SAVINGS & LOAN ASSOCIATIONS
NET
SHARE CAPITAL
ANNUAL
NEW .
NET
GROWTH
MONEY 2
1
FLOW
RATE

5,082
4,208
2,551

1967
1968
1969

1970 - Feb.
Mar.
Apr.

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

Z

£

246
510
-6

--

272
229

4.9
4.1

264
81
-325

605
1,370
-516

569
479
-543

936
2,012
-713

150
-88
-136

205
1,655
234

177
554
253

451
2,165
228

" --

Seasonally Adjusted
265
2.4
47
0.4
-1'
'

537
276

9.4
6.3
\

3

'

4

NET
NEW
MONEY 2

8,505
3,882
-1,749
833
560
868

-

3.2
1.3

-2.1
-6.7
-754
-871
-5.2
1970 - Jan.
-117
5.4
247
' 2.2
545
3.3
298
Feb.
—
1,021
Mar.
8'. 9
1,000
Apr. P/
1 Annual growth rate for monthly data is the annualized monthly percentage increase in deposits.
2 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.
3 Regular deposits at mutual savings banks exclude items such as Christmas club and certain
escrow accounts, jwhich represent a very small part of total deposits.
„
SOURCES; National Association of Mutual Savings Banks and Federal Home Loan Bank Board.

§8




i:5S3

1:1

327
466
117

--

•

19

SAVINGS FLOWS (seasonally adjusted)

M i l l i o n s of d o l l a r s

Monthly

2000

l\

T-

—

f

TOTAL

J

-

1200
800

•

-\ IS 1

-

400

1

1

h

I I I I I I I 1M I I I I II I I I II

SAVINGS & LOANS

800

MUTUAL SAVINGS BANKS

1966

'

1600

1967




1968

1969

1970

TABLE 11: Mortgage Commitments at.Selected Thrift Institutions

DATE

'

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

1

TOTAL

10.3
10.5
10.4
10.2
9.9
9.5
9.2
8.9
8.6
8.4
8.2
7.9
7.9

1

OUTSTANDING COMMITMENTS
|
NET CHANGE
ALL
ALL
MUTUAL
SAVINGS
SAVINGS &
. SAVINGS &
TOTAL
BANKS
LOAN
LOAN •
(N.Y. STATE)
ASSOCIATIONS
ASSOCIATIONS
(Billions of Dollars, S easonally Adjusted) \f

.

7.0
7.2
7.1
7.0
6.8
6.5
6.4
6.1
5.9
5.8

5.6
5.4
• 5.2

6

MUTUAL
SAVINGS
BANKS
(N.Y. STATE)

3.3
3.3
3.2
3.2
3.1
3.0
2.8
2.7
2.7
.2.6

.18
.15
-.11
-.18
-.32
-.36
-.31
-.33
-.24
-.25

.12
. 14
-.06
-.11
-.22
-.24
-.18
-.23
-. 18
-.12;

.06
.02
-.05
-.06
-.10
-.12
-.13
-.09
-.06
-.13

2.6
2.5
2.5

-.17
-.31

-.22
-.23
-.17

.04
-.07
-.02

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. 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.




MORTGAGE COMMITMENTS OUTSTANDING (seasonally adjusted)
Monthly

Billions of dollars

TOTAL

S&L'S

N Y. MSB'S

Includes building loans beginning August 1 9 6 7

1960




1962

1964

1966

1968

1970

TABLE 12: Net Change in Mortgage Holdings 1
FINANCIAL INSTITUTIONS
MUTUAL
SAVINGS &
SAVINGS
. LOAN
COMMERCIAL
ASSOC.
BANKS
BANKS

LIFE
INSURANCE
COMPANIES

MIMA-CMMA

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

4,648
2,914
2,496
2,056

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

293
228
198

622
671
917

134
150
125

201
221
205'

.38
106
153

136
223
317

213
187

604
533
529

„ 884
875
899
854
1,022
859
720
654
627
547
576

207
159
194
169.
183
173
193
191
171
139
134

177
193
207
224
278
334
530
511
568
583
614

400
436
276

225
241

TOTAL
INCLUDING
FNMA-CNMA

TOTAL

18,197
19,988
23,827
23,485

15,874
18,191
21,319
19,110

4,705
4,639
6,677
5,152

2,760
3,118
2,796
2,495

1969 - Jan.
Feb.
Mar,"

1,701
1,750
1,964

1,500
1,529
1,759

451
480
519

1970 - Jau.Feb.

1,091
1,149

' 487
616
n.a.

^100
100
0

1969 - Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
, Nov.
Dec.

2,202
2,099
2,117
2,032
2,153
1,698
1,910
1,876
1,734
1,652
1,906

2,025
1,906
1,910
1,808
1,875
1,364
1,380
1,365
1,166
1,069
1,292

668
632
567
534
440
151 :
310
383
244
237
347

266
230
240
251
230
181
157
137
124
146
235

1970 - Jan.
Feb.
Mar.

1,493
1,604

937
1,105
n.a

288
285 •
114

24
143
197

DATE

Not Seasonally Adjusted
1966
1967
1968
1969

Mar.

Seasonally Ad lusted

1

7

556
499
516

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

TOTAL, INCL. FNMA - GNMA

FINANCIAL INSTITUTIONS

1.5

1.0

1967




1968

1969

1970

TABLE 13: Net Increases in Mortgage Debt Outstanding
Billions of dollars, SAAR QUARTER

1969

1- to 4FAMILY

MULTIFAMILY

COMMERCIAL

MULTI-AND
COMMERCIAL

FARM

28.5
24.3
18.7
15.2

19.2
15.6
11.0
9.2

14.8
12.1
8.4
7.0

4.4
3.6
2.6
2.1

6.9
6.5
5.5
4.2

11.6
10.1
8.2
6.2

2.4
2.2
2.2
1.8

- - if/
up
IIIl>
IVp

15.6
20.5
27.0
27.5

10.0
13.8
19.6
19.9

6.8
10.5
15.7
16.0

3.2
3.4
3.9
3.9

3.8
4.9
4.9
4.9

7.2
8.2
8.7
8.8

1.8
1.8
2.5
2.7

18.4
18.0
18.2
20.5

15.4
14.8
14.6
16.5

3.0
3.2
3.5
4.0

6.3
5.7
6.5
7.8

9.4
8.9
10.1
11.7

2.3
2.2
1.8

22.1
21.2
19.8
16.9

17.9
16.5
15.1
13.0

4.2
4.7
4.6
3.9

6.1

10.3
9.6
9.1
9.0

2.2
2.3

.

1968

RESIDENTIAL

- l£/
ii
in

1966

1967

TOTAL

iv

- If/ 27.1
25.9
Hp
III] > 26. 5
IVp 30.1
If/
HP
Hit
IVp

30.4
28.5
26.4
24.0

5.0
4.6
5.1

1.8

2.0

1.9

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

TOTAL

TOTAL
RESIDENTIAL

,

1-4 FAMILY

COMMERCIAL

MULTIFAMILY

1966




1968

1970

T A B L E 14: F N M A "Auction" Results

WEEK
. ENDED:

COMMITMENTS IN $ MILLIONS
ACCEPTED
TOTAL
TOTAL
901 -YEARH
6OFFERED
MONTH & OVER
DAY

IMPLICIT Y I E L D 2 ( p e r cent)
90DAY

6MONTH

1-YEAR
& OVER

1

Jan.

26

581.4

297.8

37.7

187.3

72.8

9.37

9.29

9.26

Feb.

9
24

497.0
438.1

295.3
279.9

41.2
52.7

188.0
150.4

66.1
76.8

9.23
9.20

9.28
9.25

9.15
9.13

Mar.

9
23

354.6
395.4

276.4
239.0

60.7
47.5

136.!5
124.5

79.2
67.0

9.16
9.12

9.19
9.14

9.13
9.12

Apr.

6
20

268.4
315.7

190.2
185.2

41.0
54.0

121.-4
98.:

27.8
33.1

9.05
9.02

9.07
9.04

9.10
9.10

May

5
11
18
25

443.3
269.2
300.3
289.5

121. 1
63.:2
86.'4
- 86. 7

38.9
13.0
17.5
19.7

9.01
9.04
9.11
9.15

9.04
9.07
9.13
9.18

9.18
9.22

1

195.5
43.5.
26.0
102.2
136.3
32.4
145.2 o/38.9
(150.0)-

1

.

9.10
9.13

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 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
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.

FNMA "AUCTION" RESULTS
$ Millions

~

AMOUNT OF ACCEPTED BIDS
BY COMMITMENT PERIOD

200

6 MONTHS

100

1 YEAR
AND OVER

| 3 MONTHS

IMPLICIT YIELD
6 - M O N T H COMMITMENTS

10

$ Millions

800
600
TOTAL BIDS RECEIVED
400

200
|

|
JUNE

| TOTAL BIDS ACCEPTED
AUG.

OCT.

1969




DEC.

FEB.

APR.

JUNE

1970

AUG.

OCT.

DEC.

TABLE 15: Private Housing Starts and Permits
STARTS

DATE

SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE

TOTAL

UNADJUSTED
TYPE OF FINANCING
FHA | VA

I

OTHER

Dec.

1,505
1,533
1,507
1,429
1,376
1,481
1,390
1,280
1,402

797
877
826
803
752
828
766
762
776

708
656
681
626
624
653
624
518
626

159.0
155.5
147.3
125.2
124.9
129.3
123.4
94.6
84.1

23.0
21.1
21.5
20.8
22.4
18.3
25.1
18.8
23.2

4.4
4.3
4.6
4.7
4.2
4.8
5.0
3.9
4.2

131.6
130.1
121.2
99.7
98.3
106.2
93.3
74.7
57.9

1970 - Jan.
Feb.
Mar.
Apr.

1,059
1,306
1,384
1,181

577
725
702
693

482
581
682
488

66.4
74.3
113.9
123.8

16.5
17.5
25.2
32.4

3.4
3.9
4.8
5.4

46.5
52.9
83.9

1969 - Ap r .
May
June
July
Aug.
Sept.
Oct.
Nov.

86.0

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2
1,502
1,323
1,340
1,228
1,245
1,201
1,183
1,191
1,239
1,0131,137
1,099
1,249

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 estimates for about 10,000 areas
identified as having a local building permit system in 1959. Estimates beginning^
January 1963 are for approximately 12,000 and beginning January 1967 13,000, or
all known permit-issuing places. Unlike starts, seasonally adjusted building permits reflect direct adjustment for differences in the number of working days per
month, as well as other differences in timing and coverage.




29

PRIVATE HOUSING STARTS AND PERMITS
Monthly, annual rates

Millions of units

SEASONALLY ADJUSTED
2.0

HOUSING STARTS

1.6

12
BUILDING PERMITS

(in issuing areas)

PER CENT OF UNADJUSTED TOTAL STARTS

MULTI-FAMILY

40

GOVERNMENT UNDERWRITTEN
1964




1966

1968

1970

TABLE 16: Mortgage and Bond Yields
FHA
MORTGAGES

2

. DATE .
25-YEAR 30-YEAR

CONVENSPREAD BETIONAL
TWEEN YIELDS
MORTON C0NV. &
GAGES ;
FHA MORT3
GAGES

1

NEW
Aaa CORPORATE
BONDS
4

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES

1959-60 - High
1961-66 - Low
1966 - High
1967 - High
Low
1968 - High
Low
1969 - High.
Low

6.26
5.43
6.73
n. a.
n. a.
n. a.
n. a.
n. a.
n. a.

n. a.
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

5125
4.41
5.82

1.69
.77
1.16

6.51
5.18
6.79
6.15
8.75
6.91

1.28
.27
1.20
.26
1.08
-.13

1969 - Dec.

n. a.

8,62

8.35

-.27

8.75

-.13

1 9 7 0 - Jan.
Feb.
Mar.
Apr.

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

1

2

3

4

8.55
8.46
9.29
8.55
-.74
8.30
.99
9.20
8.55
-.65
8.60
.60
9.10
8.55
-.55
8.60
.50
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 a n d — b e g i n n i n g July 1961--30-year mortgages with
minimum downpayments, weighted by probable volume of transactions. Yields ,
computed by FHA, assuming.prepayment period of^l'2 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 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.
See note for Table 1.




MORTGAGE AND BOND YIELDS
Monthly

12

11

10

\

9

8

__ 7
HOME MORTGAGES:

6

CONVENTIONAL

5

Aaa CORPORATE BONDS:
NEW ISSUES

4
_L_

J

L

_J

_1L

E L D S P R E A D ( F H A MORTGAGE VS. NEW ISSUE Aaa CORPORATE BONDS)

200

A'Ka
J

_J_
1962




1
1964

1966

I

111111111111111 H m HI I
1968

1970

100
+
0

100

TABLE 17: Conventional Mortgage Terms

DATE

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

1

"i

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

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

LOAN
J
AMT;
($000) ;
4
1

19 .9
19 .7
20 .1
20,.1
19..8
19..2
19..5
20. 1
20. 8

'j

1969
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

7.47
7.50
7.62
7.76
7.86
7.89
7.98
7.97
8.07

0.96
0.88
0.84
0.92
0.86
0.92
0.89
0.96
1.06

7 .62
7 .65
7,.76
7,.91
8..00
8.,05
8.,13
8.,13
8. 25

25.4
25.8
25.6
25.5
25.2
25.3
25.3
25.3
25.4

72.6
73.2
73.0
72.0
72.3
72.4
72.9
72.8
71.9

24.8
25.0
24.9
24.5
24.3
24.7
25.0
24.6
25.0

7.46
7.54
7.64
7.79
7.90
7.92
7.98
8.00
8.08

0.85
0.83
0.86
0.91
0.93
0.92
0.91
0.90
0.93

7.60
7.68
7.79
7.94
8.05
8.08
8.13
8.15
8.24

23 .0
22,.7
22,.8
22..8
22.,6
22.,2
22. 2
22. 6
22.9

71.8
71.9
71.4
71.7
71.2
70.7
70.2
70.4
70.6

1970
Jan.
Feb.
Mar.r/
Apr.

8.16
8.23
8.29
8.23

1.08
1.09
1,11
1.02

8..34
8,.41
8.,47
8. 40

25.0
25.2

69.3
71.8

25. L
24.9

8.13
8.23
8.26
8.20

0.94
1.02

8.29
8.41

22. 4
22. 4

70.3
70.2

1

25.0
24.8

71,1
71.1

25.1
24.5

•'.'98
0.90

8.43
8.35

22. 6
22. 8

70.4
70.4

r

20. 5^ t
20.4 C
20. 6
20. 4

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.

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 l>y 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.
.

4 ' Derived by FRB.




;
-

•/,'

i

f

CONVENTIONAL MORTGAGE TERMS
Monthlyo

MATURITY
NEW
25

EXISTING

20

15i r i i i i i
i i i i i i i m i rl i i i i

80

LOAN/PRICE RATIO

NEW

75

EXISTING
70

r

L _ _

i

•

i-

65

11111111ii111111111
ii I
M 11 n
Thousands of doll

LOAN AMOUNT
-

30

NEW

-—-nzzz—Z

EXISTING

10
1

1

1964




1
1966

1
1968

I n n IIIiiii1iiii M I I M
1970
* CHANGE IN SERIES