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DECONTROLLED AFTER SIX

L.5.8 Confidential (F.R.)

JUNE 1 5 ,

LIBRARY
JUi\la-197u
VttfHiM. M'StHV B 1ANK
Qt X1NATMD

CAPITAL
MARKET
DEVELOPMENTS

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




1970

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:
e

Estimate

p

Preliminary

r

Revised

n.a.

Not available




•

TABLE 1: Yields, Volume and Reception

WEEK ENDING:
1970 - May

YIELDS
MOODY'S
SEASONED
NEW ISSUE1
Aaa

1
8
15
22
28

8.91
8.98
9.10
9.05
9.20

June 5
12
19

9.05
9.23
. n.a.

WEEK ENDING:

1970 - May

June

1
8
15
22
28

1
5 |
12 i
19£/|

7.92
7.99
. 8.09
8.16
8.21
8.30
8.42
n.a.

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

CORPORATE BOND MARKET
VOLUME 2
PER CENT
BONDS SCHEDULED
GROSS
SOLD BY END
OF WEEK
WITHIN 28 DAYS
OFFERINGS
195
345
610
284
222

99
100
97
62
96

2,717
2,636*
2,385*
1,044
819

261
383
500e

84
89
n. a.

1,069
1,285
n. a.

'

MUNICIPAL BOND MARKET
VOLUME2
PER CENT
1
SOLD BY END 1 BONDS SCHEDULED
GROSS
OF WEEK
| WITHIN 28 DAYS
OFFERINGS

6.50
6.55
6.70
6.74
6.80

6.79
6.89
6.96
7.02
7.12

196
113
319
250
245

6.75
6.85
n.a.

6.92
7.03

90
302e
400e

77
68""
70
63
86
69
72
n.a.

530
624
449
508
308
608
754

i
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

AT&T rights offerings included in May estimate.




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

, DATE
OFFERED

30.0
10.0
25.0
125.0

6/10
6/10
6/9
6/9

DATE
OFFERED j RELEXSED

June

*

9 3/4 " 9.75
9 5/8
9.50
9 5/8
9.40 .
9.00
9.05

A
Aa
Aa
Aaa

5
5
5
5

yrs.'
yrs.
yrs.
yrs.

ESTIMATED PROPORTION SOLD
45
20
40
98

%
%
% '
%

•

CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK
ORIGINAL INCREASE RATING AND ESTIMATED PROAMOUNT
ISSUER
COUPON
YIELD IN YIELD CALL PROT. PORTION RELEASED
30.0
35.0

Western Mass. Elec.
Kansas City P & L

INVENTORIES 1
MUNICIPALS
BLUE LIST
|
IN SYNDICATE

DATE
1970 - May

1•

Lone Star Gas
Union Light
West Penn Power
P.P. G. Industries

6/8
6/8

6/3
6/4

T

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

9 3/8
9 1/8

9.28
9.05

+ 16
Aa 5 yrs.
+ 15 ' Aaa5 yrs.

50%
75 %

CORPORATES
IN SYNDICATE

15
22
29

463
499
443

128
184
78

17
108
9

5
12£/

375
396

54
92

41
42

'

N.C-. - No call protection.
1
All figures in millions of dollars. Blue List is daily average for week ended Friday,except for L .cust 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

100

MUNICIPAL BONDS IN SYNDICATE
300

200
100

SEPT.

DEC.

66




MAR.

JUN.

1969

SEPT.

DEC.

JUN.

1970

SEPT.

DEC.

TABLE 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
BUYER1S
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)

9.23 (6/12)
8.20 (2/27)

8.42 (6/12)
7.79(3/6)

7.55 (5/29)
6.60 (3/6)

7.12 (5/29)
5.95 (3/12)

1970 - May 15
22
29

9.10
9.05
9.20

8.09
8.16
8.21

7.12
7.17
7.55

6.96
7.02
7.12

June 5
12

9.05
9,23

8.30
8.42

7.33
7.43

6.92
7.03

1970 - High
Low

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
1
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

Per cent

NEW CORPORATE Aaa

MOODY'S
CORPORATE Aaa

U S. GOVT. 2 0 YR.
CONSTANT MATURITIES
BOND BUYER MUNICIPAL

1966




1967

1968

1969

1970

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

. PERIOD
1970

1

1969

STATE AND LOCAL 2
1968

1970

1968

1969

January
February
March

2,601
1,830
3,400e

2,075
2,045
2,098

i . 1,338
1,771
1,608 . |
1,^12
1,799
J
1,499

1,262
987
538

1,178
1,158
1,404

April
May
June

3,000e
3,500e
2,600e

2,748
2,076
2,530

1,428
1,866
2,411

1,801
1,110
737

1,318
1,143
1,395

July
August
September

2,478
1,427
2,427

• 2,143
1,432
1,557

1,097
808
559

1,469
1,699
1,444

October
November
December -

1,933
2,375
2,532

2,129
1,767
2,054

1,280
886
816

2,230
1,021
1,115

1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

1st half
Three quarters
Year

7,831e
9,l00e

6,218
7,354
6,332
6,840
13,572
19,904
26,744

£

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

10,882
16,015
21,965.

1
|
;
1

1,630
1,OOOe
900e

! - .

j

4,049e/
3 ,530B/

2,787
3,840
3,648
3,856
2,464
4,612
2,982 ' 4,366
6,435
8,899
11,881

7,956
12,008
16,574

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

Quarter
Quarter
Quarter
Quarter

Year ~
1
2
3

6,170
7,037

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.




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.
FOREIGN | CONVERTIBLE
OFFERED , PLACED
STOCK
1

QUARTER
OR
MONTH

TOTAL

GROSS PROCEEDS BY
TYPE OF ISSUER
PUBLIC
UTILITY

COMMUNICATIONS.

OTHER
ISSUERS1

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

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

1,540
1,673
1,347
1,053
1,092

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

1969 - May
2,076
June
2,530
July
2,478
Aug.
1,426
Sept.
2,427
Oct.
1,933
Nov.
2,375
Dec.
2,532
1970 - Jan.
2,601
1,830
Feb.
Mar.e/ 3,400
2/ 3,000
Apr.j
May <
3,500

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

510
514
609
259
479
313
226
514
485
292
400
400
300

694
744
589
482
» 726
651
984
672
522
470
1,100
600
200

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

463
233
214
167
369
105
303
401
387
249
250
330
'200

569
691
875
362
625
260
453
601
787
371
1,500
800
850

392
702
493
507
544
745
622
600
639
540
820
960
450

197
191
286
126
272
120
201
277
229
226
260
25
1,800

915
946
826
433
984
808
1,099
1,054
947
694
820
1,215
400

1969 - I
II
III
- IV
1970 - I e/

V

2,000
3,000

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.
X




TABLE 6: Large Long-term Public Security Issues for New Capital
'
(Other than U.S. Treasury)1
•
p 1 t-hrni ph 12, 1 Q70
.
ISSUER

•

\

\

TYPE 2

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

COUPON '
RATE OR
NET-INTEREST COST

OFFERING
YIELD

MOODY'S
RATTNC.

Corporates
Debs
100. 0
Scott Paper Co.
25.0
Central Hudson Gas & Elec. Co. 1st Mtg.
23.0
Debs
Mapco Inc.
30. 0
1st Mtg.
Western Mass. Elec. Co.
Western Mass. Elec. Co.
Pref. Stk.
15. 0
American Natural Gas Co.
Com. Stk.
38.2
Tampa Elec. Company
Pref. Stk.
15.0
24. 6
*General Public Utilities Corp, Com. Stk.
Kansas City Power & Light Co.
1st Mtg.
35.0
Pref. Stk.
Tampa Electric Co.
15. 0
Conv. Sub.
Chape Manhattan Mortgage &
40. 0
Realty Trust
Debs.
Chase Man. Mtg. & Realty Trust Benf. Int.
60.
,0
Consumer Power Co.
Com. Stk.
40.
.0
Mich. Consolidated
1st Mtg.
30 .0
P.P.G. Industries
.0
S.F. Debs. 125.
16.
Pref, Stk.
,
.0
San Diego G & E
1st Mtg.
30,
Holiday Inns
.0
Texas Eastern Transm. Corp.
1st Mtg.
50,
.0
30 .0
Lone Star Gas Co.
. S.F. Debs.
1st Mtg.
West Penn. Power
25 .0
General Telephone of Calif.
Debs
70 .0
Consolidated Edison Co., N.Y . Com. Stk.
73 .4
Cincinnati Gas & Electric
Pref . Stk.
.0
35.




2000
2000
1975
2000

8.88
9.38
11. 00
9.38

8.90
9.33
11. 00
9.28

2000

9. 13

9. 05

Aaa

1990

6i
,75

6.
,75

N.R.

1995
1995

.00
10,
9 .00

.00
10,
9,
.05

1980
1972-90
1995
2000
2000

9 .50
10 .50
9.75
9 .63
9 .75

9 .50
10 .50
9 .75
9 .40
9.70

'

Aa
Aa
Ba
Aa

A
Aa
--

Baa
. A
Aa
A

TABLE 6: Large LOIUI term Public Security Issues for New Capital (continm hi
(Other than U.S. Treasury)1 As of June 12, 1970

TYPE

ISSUER

2

AMOUNT
(MILLION'S
OF .
DOLLARS)

COUPON
! •
i
- i
RATE OR
• UT.ER- MOODY'S
MATURITY 'NET INTERRATING
I.
:(
EST COST
1 V! 1 :^ 1

State and Local
^Atlanta Airport
Winchester, Mass.
Illinois Bldg. Auth
Alabama, State of
Delaware State Highway Dept.
PuebloXCo. S/D #60
Jefferson Parish, La.
Other
Federal Home Loan Banks
Federal Home Loan Banks

*
1
2

3

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

41.0
12.0
41.7
15.0
17.0
15.0
15.7

1974-2000
1971-1985
1970-1991
1971-1989
2002
1971-85
1971-95

6. 87
6.
,69
,44
7.
6.
.96
6,
,00

6-00-7. 40
5. 00-6. 70
,00
4. 75-7.
.10
,85-7,
4.
,25
7.
,00
5. 10-7.
.10
5.
,40-7.

8 .20
8 .40

8 .20
8 .40

8.04
.

Baa
Baa
Aa
A-l
A
A

. ' - I

Bonds
Bonds

300.0
250.0

1972
1973

--

Rights 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 gen« ra I obiigation;
'<ev.-Ut., revenue obligations secured only by income from public utilities;
Rev.-Q.-Ut., revenue bonds secured only by income from quasi-uti1ities ; 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 Kederal Agencies.




TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury)1 As o f June 12, 1970
(continued)

ISSUER

TYPE

AMOUNT
(MILLIONS '
OF
DOLLARS)

. APPROXIMATE DAT"
; OF OFFERING

Corporates
Appalachian Power Co.
New Jersey Bell Telephone Co .
Burlington Northern
•Dayton Hudson
GIG Industries
R.C.A. Corp.
R.C.A. Corp.
*South Carolina Elec.&Gas 00.
Consumer Power Co.
Pullman Transport Leasing Ca
Washington Natural Gas Co.
American Airlines Inc.
x

»/ ;

.

American Esna Corp.
Boston Edison
General Foods Corp.
General Foods Corp.
Louisville Gas & Elec. Co.
B-W Acceptance Corp.
ITT Continental Baking Co.
Commonwealth Edison Co.
Carolina Power & Light Co.
Baltimore Gas & Elec. Co.
Washington Gas Light Co.
*Ryder System Inc.
Southern Bell Telephone &
Telegraph Co.
^Continental Investment Corp.
Borg - Warner Corp.
Union Tank Car

Bonds
70.0
Debs.
100,0
Bds.
60.0
Debs.
25.0
Debs.
25.0
Notes
75.0
S.F. Debs.
75.0
Bds.
30.0
1st Mtge.
60.0
Equip. Trst.
Ctfs.
30.0
Bds.
15.0
Equip Trst.
78.5
Ctfs.
Debs.
. 25-. 0
1st Mtg.
60.0
Debs.
75.0
Notes
50.0
1st Mtg.
20.0
Debs.
35.0
Debs.
40.0
Pref. Stock 100.0
Bds.
50.0
Bds.
40-45.0
1st Mtg.
20.0
Debs.
35.0

June
June
June
June
June
June
June
June
June

15
16
16
16
16
16
16
16
17

June 17
June 17
June 18
June
June
June
June
June
June
June
June
June
June
June
June

22
22
22
22
23
24
24
24
24
25
29
30

. June 30
June
June

Addressograph-Multigraph Corp
Ramada Inns .
Avco Corp

Debs.
150.0
Conv. Debs.
30.0
S.F. Debs.
35.0
Equip. Trst.
Certf.
25.0
Debs.
60.0
Debs.
25.0
Conv. Debs.
50.0

^Beneficial Corp
Monogram Industries

Debs.
Notes

June
June




75.0
25.0

June
June
June
June

TABID,?: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury)1 As of June 12, 1970
(continued)

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

Corporates -- Continued
20.0
Gamble-Skogmo, Inc.
Cap. Notes
Detroit Edison
Gen.&Ref. Mtg. 75.0
58.0
Detroit Edison
Con. Stk.
15.0
*Beck Industries
Debs.
Consolidated Natural Gas Co. Debs.
40.0
16.0
Gulf Power Co.
Bds.
Brooklyn Union Gas Co.
1st Mtg.
30.0 '
*Diamond States Telephone Co. Debs.
15.0
Pacific Power & Light
1st Mtg.
25.0
lst/Mtg.
60.0
Florida Power & Light Co.
puget Sound Power & Light Co. Bonj&s
30.0
Kansas-Nebraska Natural Gas
Company
/
Debis.
15.0
^McDonnell Douglas Corp.
100.0
Notes
Western Electric Co.
150.0
Debs.




June
July
July
July
July
July
July
July
July
July
July

1
1
6
7
8
9
13
14
15
16

July 22
July
Sept. 29

TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury)' As of June 12, 1970

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

State and Local
*Minneapolis-St. Paul, Minn.
Metro Area
Utica Community Sch. Dist., Mich ,
*California, State of
Prince Georges County, Md.
Houston, Texas Indp. Sch. Dist.
*0nondaga Co., N. Y.
Richmond, Virginia
Alaska, State of
Delaware River Port Auth., N.J.
*Monroe Co., N. Y.
*Maine, State of
*Austin ISD, Texas
*N.Y. State Hsq. Finance Agency

G.O.
G.O.
Bds.
G.O.
G.O.
G.O.
G.O.
G.O.
Rev.
G.O.
GLO.
G.O.
Rev.

42.0
15.5
100.0
35.0
10.0
16.0
27.0
12.9
75.0
11.4
15.3
14.8
87.5

June
June
June
June
June
June
June
June
June
June
June
June
June

15
15
16
16
16
16
17
17
17
23
23
24
24

Massachusetts Bay Transp. Auth.
65.0
June 24
System
Rev.
June 30
Mississippi Highway
20.0
Bds.
Genessee Co., Mich.
June
Rev.
11.2
June
25.0
Los Angeles, Calif., Parking Auth.
Rev.
July I
46.8
Maryland, State of
. G.O.
July 1
23.5
Tulsa, Oklahoma
G.O.
July 7
Detroit, Mich.
46.0
Rev.
July 8
Nassau Co.* N. Y.
43.6
G.O.
July 14
15.0
*0aKland Co., Mich.
G.O.
July 13
50.0
San Francisco BARTS
Rev.
^Kentucky
10.0
Aug. 1
G.O.
15.6
Aug. 5
*0akland Co., Mich.
Rev.
Other
100.0
June 16
Bonds
T.V.A.
*
Included in table for first time.
.
^
*
1
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.
Postponements: State of New York - 60.0 postponed because of market conditions.
Pennwalt Corp.

- 40.0 postponed because of market conditions.

Ingram Corp.

- 20.0 postponed because of market conditions.




TABLE 8: Stock Prices and Volume
STOCK PRICES1

. DATE

D.J. - IND.

TRADING VOLUME2
AMEX

4

NYSE

AMEX

1968 - High
- Low

108.37(11/29) 985.21(12/3) 33.24(12/20) 82.1(6/7)
825.13(3/21) 21.97(3/25) 34.0(2/23)
87.72(3/5)

45.4(6/7)
14.1(2/23)

1969 - High
Low

106.16(5/14
968.85(5/14) 32.91(1/3)
82.6(10/17)
89.20(7/17) 769.93(12/17) 25.02(7/29) 32.8(4/4)

38.4(5/9)
12.9(4.4)

1970 - High
Low

93.46(1/5)
811.31(1/5)
27.02(1/8)
80.7(5/26)
69.29(5/26) 631.16(5/26) 19.36(5/27) 44.6(3/20)

28.4(1/2)
10.3(6/12)

1
8
15
22
29

81.44
79.44
76.90
72.25
76.55

733.63
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

5
12

76.17
74.21

695.03
684.14

20.99
20.72

71.9
39.0

27.4
10.3

1970 - May

June

1

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

2

1941-43 = 1 0 .

3

Average dollar value of' shares listed.

4

NYSE is the New York Stock Exchange; AMEX is the
Total number of shares traded per week (millions
normally conducted for 5-1/2 hours per day and 5
per week. In recent years, however, abbreviated
over the time periods, shown below:
From:

Through:

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




Highs and lows are

American Stock Exchange.
of shares), trading is
days per week, or 27-1/2 hours
trading to the extent, and
Hours/ '
Dav
4
4
5-1/2
4.
4-1/2
5

Days/
Week
5
5
4
5
5
5

Hours/
Week
20
20
22
20
22-1/2
25

15

STOCK PRICES AND TRADING VOLUME
AM EX

Weekly

1280 128

STOCK PRICES

1200 120

AMEX PRICE LEVEL INDEX

1120 112

1040 104

960

96

880

88

800

80

720

72

Millions of shares

60
A M E X T R A D I N G V O L U M E (TOTAL FOR WEEK)

N Y S E T R A D I N G V O L U M E (TOTAL FOR WEEK)

1966




1967

1968

1969

1970

TABLE 9: Security Credit

END OF PERIOD

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

CUSTOMERS'
NET DEBIT
BALANCES

NET CREDIT
CUSTOMERS' NET EXTENDED B\
FREE CREDIT
BROKERS AND
DEALERS 3
BALANCES

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

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

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

1970 - Jan.
Feb.r/
Mar.r/
Apr .£/
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

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

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

-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

-57
423
-261
-397
-290
18
30
8
144

-150
-40

-440
-170
-50
-180

-762
-121
-209
-383

-177
-163
-22
-195

-585
42
-187
-188

1969

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

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

1
2
3

-20
100
-330
-170
-170 ,
-60
100
30
-100
-290
-110
-50
-140

—

-40

Margin debt, as reported by the New York Stock Exchange. Although margin debt
until March 1968 included loans secured by U.S. governments, the amount of such
loans included is thought to have been small.
"Bank loans to others than brokers and dealers for purchasing or carrying securities other than U.S. governments."
The difference between customers' net debit balances and customers' net free credit balances, this figure represents the net credit extended by brokers and
dealers to the nonfinancial public.
NOTE: With the exception of bank loan data, figures are supplied by the New York
Stock Exchange and are end of month data. Bank loans are for weekly reporting '
large commercial banks. Broker data includes loans for regulated securities; bank
data includes loans for the purpose of purchasing or carrying any security, whether
regulated or not.
,




TABLE 10: Savings Flows at Nonbank Depositary Intermediaries
($ millions)
. MUTUAL SAVINGS BANKS
SAVINGS < LOAN ASSOCIATIONS
5
c
REGULAR DEPOSITS 3
NET
SHARE CAPITAL
NET
ANNUAL
NEW''
ANNUAL
NEW
MONEY2
NET
GROWTH
NET
. GROWTH
MONEY2
1
1
FLOW
RATE
FLOW
RATE

DATE

1967
1968
1969

5,082
4,208
2,551

1969 - Mar.
Apr.
May

642
-197
308

1970 - Mar.
Apr.
May £/

510
- 6
300

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

9.3
7.1
4.0

.

2,376
1,143
- 747

- -

81
- 325
227

1,370
- 516
642

- 88
- 136
200

1,655
234
900

-—
- -

__
-•

-__
• ——
- -

.

TOTAL
DEPOSITS
ANNUAL
NET
GROWTH
RATE 1
FLOW
15,731
11>607
6,371

479
- 543
601

2,012
- 713
949

554
253
n. a.

2,165
228
1,200

9.4
6.3
3.4
__
__
- __

- -

• NE1
NEW '
MONEY 2

8,505
3,882
-1,749
560
868
828
466
117
n. a.

Seasonally Adjusted
1969 - Dec.
1970 - Jan.
Feb.
Mar.
Apr. £/
May

229
•
/

1
2

4.1

——

47

0.4

-117
298
244
359
334

-2.1
5.4
, 4.4
6.4
6.0

—-

-754
247
1,021
1,000
784

-6.7
2.2
9.1
8.9
6.9

-——
-— •

——

276
- 871
545
1,265
1,359

1.3
-5.2
3.3
7.5
8.1

- -

1,118

6.6

.

- -

Annual growth rate for monthly, data is the annualized monthly percentage increase in deposits.
Net New Money is new deposits net of both withdrawals and interest. Data for S&Ls are for
. insured associations only, which represent 96% of industry, total resources.
3 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.




.

'

19

SAVINGS FLOWS (seasonally adjusted)
Monthly

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

2000
1600
1200
800
400

400

SAVINGS & LOANS

-

:

!

MUTUAL SAVINGS BANKS
-

-

1
1966

1
1967




1 I 1 1 II 1 1 1 1 1 1 1 1 1 1 1
1968

1969

1970

II

V/
TABLE 11: Mortgage Commitments at Selected. Thrift Institutions 1

DATE

TOTAL

10.3
1969 - Mar.
10.5
Apr.
May
10.4
10.2
June
July
9.9
Aug.
9.5
Sept.
9.2
Oct.
8.9
8.6
Nov. ,
Dec.
8.4
1970 - Jan.
Feb.
Mar.

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

7.0
7.2
7.1
7.0
6.8
6.5
. 6.4
6.1
5,9
5.8

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

5.6
5.4
5.2

2.6
2.5
2.5

-.17
-.31

MUTUAL
SAVINGS
BANKS
(N.Y. STATE)

-.22
-.23
-.17

8.2
7.9
7.9

,

I

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. 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.




.06
.02
-.05
-.06
-.10
-.12
-.13
-.09
-.06
-.13
.04
-.07
-.02

MORTGAGE COMMITMENTS OUTSTANDING (seasonally adjusted)
Monthly

Billions of dollars

TOTAL

S&L'S

N Y. MSB'S

Includes building loans beginning August 1967

1960




1962

1964

1966

1968

1970

TABLE 12: Net Change in Mortgage Holdings
FINANCIAL
INCLUDING

DATE

ASSOC.
BANKS
Not Seasonally Adjusted

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

1969 - Jan.
Feb.
Mar.

1,701
1,750
1,964

1,500
1,529
1,759

1970 - Jan.
Feb.
Mar.
Apr.

1,091
1,149
n. a.
n. a.

487
616
n. a.
n. a.

100
100
0
200

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

1970 -

Jan.
Feb.
Mar.
Apr.

1,493
1,604
n. a.
n. a.

937
1,105
n. a.
n. a.

Report
from

"of Mutual
and,
after

Savings

through

on

real
debt

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

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

622
671
917

134
150
125

201
221
205

213
187
n. a.
n. a.

604
533
529
477

207
159
194
169
183
173
193
191
171
139
134

177
193
207
224
278
334
530
511
568
583
614

225
241
n. a.
n. a.

556
499
516
494

Banks,

August

estate

Federal

1968,

the

the

Government

savings

banks

and

for

Life

derived

from

regular

accounted

for

87




are
per

not
cent

loans

Home

made
of

outstanding

as
Loan

National

Insurance

quarterly

• 400
436
276
387

24
143
197
205

reported
Bank

Federal' N a t i o n a l

and

adjustments

38
136
106
223
153
317
160
517
Seasonally Adjusted
266
884
230
875
899
240
251
854
230
1,022
859
181
720
157
654
137
627
124
146
547
576
235

outstanding

FNMA

which

by

data

mortgage

'

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

288
285
114
141

Call

Board,
Mortgage

Mortgage

companies

as

may

because

minor

increase*estimated

Other

of

Life

Association,
Data

somewhat

conceptual
Altogether,
for

all

data

National

Institute

differ

m o n t h l y .series.

net

of

by

Association.

in

the

available.

separately

series

the

COMPANIES

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

451
480
519

to

INSURANCE

293
228
198

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

derived

LIFE

&

LOAN
1

BANKS

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

.

SAVINGS

SAVINGS

COMMERCIAL

TOTAL

FNMA-GN MA

1966
1967
1968
1969

INSTITUTIONS

MUTUAL

TOTAL

Assn.
Insurance

and

there-

for

from

mutual

those

differences
these

holders

for

groups
in

1967.

23

NET CHANGE IN MORTGAGE HOLDINGS (seasonally adjusted)
Monthly

Billions of dollars

3.0

2.5
TOTAL, INCL. FNMA - GNMA

2.0

FINANCIAL INSTITUTIONS

1.5

1.0

1967




1968

1969

1970

TABLE 13: Net Increases in Mortgage Debt Outstanding
Billions

*

QUARTER

1966 . - Ij>/
IT
. Ill
IV

TOTAL

RESIDENTIAL3

of

dollars,

SAAR

1- to 4- MULTIFAMILY . FAMILY

1

-

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

1967

.- 12/ 15.6
H p 20.5
III|> 27.0
IVp 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

1968

- ip/ 27.1
H p 25.9
III!, 26.5
IVp 30.1

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
1.8

1969.

- ip/ 30.4
IIP 28.5
- m i > 26.4
IVp 24.0

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
5.0
4.6
5.1

10.3
9.6
9.1
9.0

2.2
2.3
2.0
1.9

1
^

2

•

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
Quarterly

IN MORTGAGE DEBT OUTSTANDING
Billions of dollars, seasonally adjusted a n »

-

TOTAL

24

TOTAL
RESIDENTIAL

1-4 FAMILY

COMMERCIAL

MULTIFAMILY

1966




1968

1970

TABLE 14: FNMA Weekly "Auction" Results
COMMITMENTS IN $•MILLIONS
IMPLICIT YIELD2(per cent)
ACCEPTED
WEEK . TOTAL
90TOTAL
9061-YEAR'1
1-YEAR 1
6OFFERED
ENDED
DAY
MONTH & OVER
& OVER
DAY
MONTH
1970 - Mar.

23

Apr.

6

20
5
11
18
25

May

354.6
395.4
,268.4
315.7 i
443.3
269.2
300.3
289.5
224.2

June

276.4
239.0

60.7
47.5

136.5
124.5

79.2
67.0

9.16
9.12

9.19
9.14
I

9.13
9.12

9.07
9.04

9.10
9.10

190.2
185.2

41.0
54.0

121.4
98.2

27.8
33.1

9.05
9.02

195.5
102.2
136.3
145.2

43.5
26.0
32.4
38.9

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

9.10
9.13
9.18
9.22

113.8
31.1
(300.06

71.4

11.3

9.20

•9.24

9.27

Note: Under the FNMA auctiori 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.




27

FNMA "AUCTION" RESULTS
$ Millions

200

AMOUNT OF ACCEPTED BIDS
BY COMMITMENT PERIOD

150

-

i 6 MONTHS
100

1 YEAR
AND OVER

I

V

v

50
\

| 3 MONTHS

M

a

1

v

I

I

I

i

l

l

'

I

i

i

i

0

i

IMPLICIT YIELD
6 - M O N T H COMMITMENTS

10

$ Millions

TOTAL BIDS RECEIVED

TOTAL BIDS ACCEPTED
JUNE

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

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

0 - Jan.
Feb.
Mar.
Apr.

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

577
725
702
693

708
. 656
681
626
- 624
653
624
518
626
482
581
682
488

TOTAL

UNADJUSTED
TYP E OF FINANCING
' FHA VA
OTHER

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

66.4
74.3
U3.9
123.8

16.5
17.5
25.2
32.4

3.4
3.9
4.8
5.4

46.5
52.9
83.9
86.0

BUILDIN.
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE)2
1,502
1,323
1,340
1,228
. 1,245
1,201
1,183
1,191
1,239
1,013
1,137
1,099
1,249

Total starts are Census estimates including farm for both permit-issuing and
nou-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.
2 . 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.
1




PRIVATE HOUSING STARTS AND PERMITS
Monthly, annual rates

Millions of units

SEASONALLY ADJUSTED

2.0

HOUSING STARTS

1.2
BUILDING PERMITS

(in issuing areas)

•CHANGE IN SERIES

PER CENT OF UNADJUSTED TOTAL STARTS

MULTI-FAMILY

GOVERNMENT UNDERWRITTEN
1964




1966

1968

1970

1

TABLE 16: Mortgage and Bond Yields
FHA
MORTGAGES

CONVENSPREAD BETIONAL
TWEEN YIELDS
ON CONV. &
MORT-.
25-YEAR 30-YEAR GAGES • FHA MORT3
GAGES

• DATE

NEW
Aaa CORPORATE
BONDS
4

SPREAD BET-V
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES

.23
.25
.30
,11
-.12
.12
-.27
i-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

2

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.

5.44
6.81
6.81
6.2.9
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

1969 - Dec.

n. a.

8.62

8.35

-.27

8.75

-.13

1970

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

9.29
9.20
9.10

8.55
8.55
8.55
8.55

-.74
-.65
-.55

8.46
8.30
8.60
8.60

.99
.60
.50

1

Jan.
Feb.
Mar.
Apr.

Neither
much

mortgage

higher

annually;
a

for

nor

mortgages,

semi-annual

bond

mortgages

yields
than

monthly.

interest

include

for

Based

Mortgage

investment,

FHA-field-office

15

by

compared,

Based

for

FHA,

years

Dashed

for

the

lines
on

30-year

movement
indicate

first

cities.

Beginning
that

to

gages.
note

date,

of

Dashed
for

line

Table




rate

the

if

servicing
bonds

computed

slightly

average
for

pay
as

costs

which

interest

than.given

prices

in

are

semi-

equivalent

higher

two
of

mortgage

on

1960,

related

to

this

typical
in

12

to

in

the

the

to

changes

market

rate

relates

both

new

change

in

as
the

for

for

series

interest
only

mortgages

in

they

been

of

(rounded)
insuring

to n e w - h o m e
as

series\

can

he

similar.

contractual

rates

with

Yields

25-year-mortgages

which
has

areas

well

private

Separate

transactions.

years

period

yield

adjustment

prevailing

April

of

the

of

the

delivery.

1961--30-year

volume

period
Over

bid

immediate

July

probable

opinion

indicates
1.

by

prepayment

periods

with

about

mortgages

mortgages.

mortgages

prior
See

be

and--beginning

weighted

FHA-field-office

ventional

4

25-year

assuming

for

opinions

new-home

downpayments,

computed

3

market

available

minimum
and

yields,

would

for

Generally,

'
on

secondary
data

allowance

bonds.

. table.
2

-

interest
on

con-

office

mortgages;

existing-home

mort-

-

MORTGAGE AND BOND YIELDS
Monthly

Percent

11

HOME MORTGAGES:
CONVENTIONAL
FHA

Aaa CORPORATE BONDS:
NEW ISSUES

_

^

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

Basis Points

200

100

100
1962

1964




1966

1968

1970

TABLE 17 Conventional Mortgage Terms
NEW HOMES

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

June

7.47
7.50
7.62

07

1.06

LOAN
AMT.
($000)
4

0.96
0
0.84

Nov.
Dec.

EXISTING HOMES
CON- FEES &
LOAN/
LOAN/
TRACT CHARGES EFFEC- MATU- PRICE
PRICE LOAN
RATIO AMT.
RATE
(PER
TIVE
RITY RATIO
(PER ($000) (PER
CENT) RATE (YEARS) (PER
CENT)
CENT)
CENT)
4
3

.08

0.90
0.93

8.24

22.9

8.p
8.23
8.26
8.20

0.94
1.02
0.98
0.90

8.29
8.41
8.43
8.35

22.4 70.3
22.4 70.2
22.6 70.4r
22.8 70.4

70.6

20.

1970
Jan.
Feb.
Mar. r/
. Apr .

1

1 . 1
8.23
8.29
8.23

6

1.08

1.09
lVll
1.02

.34
.41
.47
.40

25.0
•25.2
25.0
24.8

69.3
71.8
71.1
71.1

25,1
24.9
25.1
24.5

20.5
20.4
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 exelude 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-i.n 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 ar% paid by the borrower. They exclude any. closing costs related solely to
transfer of property ownership.
•'

3

Includes fees & charges amortized over a 10 year period fn addition to the contract
interest rate.

4

Derived by FRB.




CONVENTIONAL MORTGAGE TERMS
Monthly

Yea

30
MATURITY
NEW

25
EXISTING

20

80

LOAN/PRICE RATIO

NEW

EXISTING

70

iIii i i i i i i I 65
Thousands of dollars

LOAN AMOUNT

NEW

EXISTING

1964




1966

1968

1970
* CHANGE IN SERIES

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