Full text of H.16 Capital Market Developments : June 16, 1969

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D E C O N T R O L L E D AFTER S I X M O H T H S

L.S.8 Confidential

J u n e 16, 1969.

LIBRARY
J UN I S teoS
FEDLtuxL REt^rtVti *<Ui£
OF RICHMOND

'Idp'ctaJ

niHkkLf

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:
e

Estimate

p

Preliminary

r

Revised

n.a.

Not available




TABLE 1: Yields, Volume and Reception

WEEK ENDING:

1969 - May

June

June

CORPORATE BOND MARKET
VOLUME 2
PER CENT
GROSS
SOLD BY END
BONDS SCHEDULED
OF WEEK
OFFERINGS
WITHIN 28 DAYS

9
.16
23
30

7.10
7.08
7.28
7.44

6.79
6.75 ^
6.78
6.83

184
374
197
88

88
85
78
45

630
983!
926
731

6
13
20

7.52
7. 75
n. a.

6.90
6.95/.
n. a.

226
267
330e

73
96
n. a.

644
432
n.a.

WEEK ENDING:

1969 - May

YIELDS
MOODY'S
SEASONED
1
NEW ISSUE
Aaa

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

MUNICIPAL BOND MARKET .
VOLUME 2
PER CENT
SOLD BY END
GROSS
OF WEEK
OFFERINGS

.
1

BONDS SCHEDULED
WITHIN 28 DAYS

9
16
23
30

4.95
5.10
5.30
5.40

5.17
5.31
5.46
5.60

189
268
364
r/249

54
64
63
76

886
843
627
502

6
13
20

5.55
5.60/
n. a.

5.73
5.82
n.a.

r/221
~ 110
180e

73
89
n.a.

365
439
n.a.

Z

:

1 Derived by adjusting to a Aaa basis, new issues of publicly-offered corporate bqnds"
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

CORPORATE BONDS IN SYNDICATE END OF LA. LSI WEEK
ORIGINAL
RATING AND
ISSUER
•••'"•
YIELD CALL PROTECTION
COUPON

AMOUNT, '
(MIL. $)

6/11

12

Pennsylvania Power Company

8

7.87

Aa

5 yrs.

• ESTIMATED PRO. PORTION SOLD
75%

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

" AMOUNT
5/27
6/46/5

6/9
6/9
6/9

65.0
50.0
28.0

So. New England
Consumer Pwr. 1st
Pennsylvania Elec. 1st

7-3/4
7-5/8
8

7.65
7.63
7.85

27
25
24

Aa
Aaa
A

5 yrs.
5 yrs.
5 yrs.

60%
10%
80%

INVENTORIES 1
MUNICIPALS

DATE
1969 - May

16
23
30
June 6
13j>/

IN SYNDICATE
520
583
509
r/509
464

198
215
182
164
118

CORPORATES
IN SYNDICATE
44
54
59
101
3

.C. - No call protection.
All figures in millions of dollars. Blue List is daily iaverage 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
Millions of dollars

_1

,

,

1

1

r—|

1

,

n—i—i—i—i—r—i—i—i—r

r-

CORPORATE BONDS IN S Y N D I C A T E

200
100

Ilk
—!—r—T—|

i

i—i—i—i

0

1

M U N I C I P A L B O N D S IN S Y N D I C A T E

300

200
100

SEPT.

DEC.

'67




MAR.

JUN.

1968

SEPT.

• DEC.

JUN.

1969

SEPT.

'

.

. •

TABLE 3: High Grade Bond Yields

NEW
\ ' MOODY'S SEASONED
CORPORATE
CORPORATE
Aaa 2
Aaa 1

' DATE
1967 - High
Low

U.S. GOVERNMENT
20-YEAR
CONSTANT
MATURITIES 3

BOND
BUYER'S
'SEASONED
MUNICIPALS 4

6.55(12/8)
5.11(2/10)

6.24(2/29)
5.00(2/10)

5.73(11/7)
4.48(1/20)

4.15(12/28)
3.25(2/9)

7.02(12/13)
6.13(8/30)

6.53(1/27)
5.95(9/13)

5.90(1/20)
5.18(8/9)

4.57(12/26)
3.80(8/8)

1969 - High
Low

7.75(6/13)
6.90(2/21)

6.99(4/3)
6.55(1/3)

6.41(5/30)
5.96(1/24)

5.60(6/13)
4.57(1/2)

1969 - May

7.10
7.08
7.28
7.44
7.52
7.75-

6.79
6.75
6.78
6,83
6.90 t
6.95/

5.92
6.01
6.19
6.41
6.37
6.27

4.95
5.10
5.30
5.40
5.55
5.60

1968 - High
Low

9
16
23
30
June 6
13%/

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.
'
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.




CI-

HIGH GRADE BOND YIELDS
| i i i i i i i i

NEW CORPORATE Aaa

k

CORPORATE Aaa
\

U.S. GOVT. 2 0 YR
CONSTANT MATURITIES

BOND BUYER MUNICIPAL Aaa

' 1 i . i' i i- i i i i i 1 i 1 *i i i i i i 1 i i i i
1965




1966

1967

1968

1969

TABLE 4: Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
GROSS PROCEEDS
CORPORATE 1

. PERIOD
1969p

1968p

STATE AND LOCAL 2
1967

1969p

1968p

1967

January
February
March

2,075
2,045
2,098

1,771
1,60.8
1,799

1,684
1,418
2,362

1
i
|

1,260
986
525

1,178
1,158
1,404

1,492
1,236
1,450

April
May

2,4l0e
2,050
2,325e

1,428
1,866
2,411

2,015
1,518
2,674

1
1
|

1,778
1,075e
55 Oe

1,318
1,143
1,395

1,130
1,254
1,497

2 ,300e

2,143
1,432
1,557

2,589
2,481
1,763

|

600e

1,469
1,699
1,444

950
860
1,340

2,129
1,767
2,054

2,409
1,500
2,385

2,230
1,021
1,115

975
1,401
1,182

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

5,464
6,208
6,832
6,294

3,740
3,856
4,612
4,366

4,177
3,881
3,150
3,557

10,882
16,015
2i;965

11,672
18,504
24,798

7,956
12,008
• 16,574

8,059
11,209
14,766

July
August
,September
October
November
December
1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

.1st half
Three quarters
Year

6,218
6,785

j

2,771
3', 753.e

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

Quarter
Quarter
Quarter
Quarter

Year
1
2
3
e
p

5,107
5,427
4,785

5,308
6,063
6,584
5,859
23,814

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.
Estimated.
Preliminary




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

QUARTER
OR
MONTH
1968 - I
II
III
IV
1969 - I
lie/
1968 - Apr.
Hay
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1969 - Jan.
Feb.
Mar.
Apr.
Maye/

1

TOTAL

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

5,17*8
5,705
5,133
5,951
6,218

2,465
3,105
2,606
2,555
2,657

1,724
1,644
1,361
1,922
1,539

1,428
1,867
2,418
2,144
1,433
1,556
2,129
1,767
2,055
2,075
2,045
2,098
2,410
2,050

719
1,046
1,340
1,244
637
727
1,009
939
607
980
842
835
1,260
900

438
521
685
528
400
433
595
362
965
636
395
508
550
550

989
956
1,166
1,474
2,023
271
300
385
372
396
398
525
466
483
460
\ 808
! 755
600
600

313
172
124
113
215
31
89
52
47
49
28
24
49
40
103
74
38
n. a.
n. a.

GROSS PROCEEDS BY
TYPE OF ISSUER
PUBLIC
UTILITY

OTHER
ISSUERS1

584
758
1,037
902
1,355

1,907
1,703
1,657
1,712
1,407

1,,442
1 ,244
1:,160
1 ,435
1 ,346

422
536
490
319
473

1,407
2,223
1,825
2,483
2,991

139
380
239
605
211
221
365
211
326
376
578
401
300
550

373
563
767
843
362
453
640
421
651
403
513
491
440
500

180
557
507
239
446
475
674
443
319
627
315
404
520
320

192
104
239
239
95
156
115
162
41
186
56
231
50
200

683
642
898
822
530
472
700
741
1,044
860
1,161
970
1,400
1,030

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.




COMMUNICATIONS

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

'
ISSUER'

TYPE2

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

June 2 through June 13. 1?69
COUPON
' /
MOODY VS
OFFERRATI: OR
ING ' , RAT IXC
NET INTER, YIELD
EST COST

Corporate
Virginia Elec. & Pwr. Co.
Pennsylvania Elec. Co.
Texas Eastern Transmission
Corporation
Consumers Power Company
Virginia Elec. & Pwr.
Paper Craft Corporation
Florida Power & Light Co.
Pennsylvania Power & Light
Company
Shell Pipe Line Corporation
Beneficial Finance
Wisconsin Power & Light




Pfd. stk)
Rev.

v

35.0
28.0

1999

8

7.85

A

Debs.
1st mtg. bds.
Bds.
Conv. debs.
1st mtg. bds.

50.0
50.0
75.0
15.0
50.0

1989
1999
1999
1994
1999

8-1/2
7-5/8
7-3/4
5-1/4
8

8.55
7.63
7.72
5.25
7.90

B. A.
Aaa
Aa
Ba
Aa

1st mtg. bds.
Debs.
Debs.
1st mtg.

40.0
60.0
50.0
25.0

1999
1999
1971
1999

8-1/8
7-1/2
8-3/8
8

8.00
. 7.50
8.375
8.00

X

Aa
Aaa
N.R.
Aa

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

ISSUER

TYPE 2

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

June 2, through June 13. 1969COUPON
!
RATE OR
' i M'TKR - MOODY'S
NET INTERi;.c
RATING
EST COST
j YIELD

State & local Government
Los Angeles Dept. of Wtr..
and Power
Rev.
Albany Co. New York
G.O.
Nassau Co. New York
G.O.

39.0
70.0
42.1

1970-99
1970-89
1970-89

5.90
5.96
5.98

4. 90-5.85
5. 00-5.90
5. 50-5.95

15.0
35.0
100.0
25.0
200.0
30.0

1974
1999
1974
1994
1972
1994-98

7-3/4
8.00
8.00
98-1/4
7.40
8

7. 87
7. 87
7. 75
8. 165
7. 40
8. 19

Aa
A
A

Other—/
Quebec, Province of
Quebec, Province of
Tennessee Valley Auth.
City of Edmonton
F.N.M.A.
Alberta Govt. Tele. Comm.
*
1
' 2

3

Debs.
Debs.
iev.
3.F. debs.
Debs.
Debs.

A

Aa
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 g e m r n l obligation;
'(ev.-Ut., revenue obligations secured only by income from public utilities;
Rev.-Q.-lit., revenue bonds secured only by income from quasi-utilities; Rvv.-S.T.,
revenue bonds secured by revenue from specific' taxes only; R e v ; - R e n t . r e v e n u e
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

As of .Tune 13. 1,69.

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

Corporate
Colorado Interstate Corp.
Vernitron Corp.
•Illinois Be.ll' Tele. Co.
Indiana & Michigan Elec. Co.
South Carolina Elec. & Gas Co.
Washington Gas Light Co.
West Penn. Power Co.
Fisher Foods; Inc.
Consumers Power Co.
Duquesne Light Co.
Hawaiian Tele. Co.
Michigan Wisconsin Pipe
Line Co.
So. Bell Tele. & Tel. Co.




Bonds
Conv. debs.
1st mtg. bds.
Bonds

30.0
20.0
150.0
. 60.0

June
June
June
June

16
16
17
18

Rev.
1st mtg.
1st mtg.
Debs.
Pfd. stk.
1st mtg. bds.
Rev.

35.0
20.0
25.0
18.0
. 35.0
30.0
25.0

June
June
June
June
June
June
June

19
23
24
24
25
25
26

Bonds
Debs.

40.0
150.0

June 30
July 8

TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury)1 A s o £ J u n e
1969.

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

State & local Government
Penna. Higher Education
Facilities Auth.
King Co., Wash.
University of Calif.
Phoenix Civic Plaza Bldg.
Corp., Ariz.
Massachusetts, State of
Newark, N. J.
*Minnesota, State of
*Coastal Industrial Wtr.
Auth., Texas
Port of New York Auth.
Louisiana State Bd. Comm.
Philadelphia, Penna.
Tallahassee, Fla.
*Los Angeles Dept. of
Airports

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

22.1
28.3
16.2 .

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

19.0
28.5
20.5
42.0

June 19
• June 24
June 24
1 June 24

Rev. bds.
G.O.

19.0
30.5
15.0
60.6
12.0

June 25
June 25
July 1
July 1
July 9

60.0

July 15

Bonds
Rev.
Rev.

'

-

Other—/
Argentine Republic

June 17
June 17
June 18

Bonds

25.0

June 17

Included in table for first time.
Includes corporate and other issues of $15 million and over; State and local
Government issues of $10 million and over.
Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues of Federal Agencies.
Postponed this week were: Philadelphia School Dist., Penna-- 17.5 no bids
received; Shreveport, La.--14.0 no bids received; Dallas I.S.D., Texas-12.0 no bids received.




TABLE 8: Stock Prices and Volume
TRADING VOLUME 2

STOCK PRICES 1
S&P
500 3

DATE

AMEX 4

NYSE

AMEX

943.08(9/25) 24.52(12/29)
786.41(1/3) 13.78(1/27)

60.7(8/14)
27.4(1/6)

33.5(10/27)
8.3(1/6)

1968 - High
Low

108.37(11/29) 985.21(12/3) 33.25(12/20)
825.13(3/21) 22.00(3/22)
87.72(3/5)

82.1(6/7)
34.0(2/23)

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

1969 - High
Low

105.94(5/16)
97.98(2/25)

968.85(5/14) 32.91(1/3)
892.58(6/12) 29.46(3/7)

72.7(5/2)
32.8(4/4)

38.4(5/9)
12.9(4/4)

1969 - M a y 16
23
30

105.94
104.59
103.46

967.30
947.45
937.56

31.28
31.11
31.03

62.0
56.8
42.7

32.6
27.8
22.2

June 6 102.12
13R/' 98.65

924.77
894.84

30.52
29.27

56.1
59.8

30.3
29.3

1967 - High
Low

97.59(9/25)
80.38(1/3)

D.J. - IND.

.

'

!-•

l

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

Highs and lows are

2

Total number of shares traded per week (millions of shares). In the past,
trading was normally conducted 5 days a week for 5 1/2 hours per day, or
27 1/2 hours per week. From August 8 through August 20, 1967, daily trading was reduced to 4 hours per day or 20 hours per week. A 20-hour week
' was also in effect from January 22 through March 1 / 1968. From June 30
through December 31, 1968, the exchanges were open 5 1/2 hours for 4 days
a week or 22 hours. Beginning January 3, 1969, the exchanges have been
open 4 hours' each day, 20 hours per week. NYSE is New York Stock Exchange;
AMEX is American Stock Exchange.

3

1941-43 = 1 0 .

4

Average dollar value of shares listed.

2./ Preliminary.




'

-

:

STOCK PRICES AND TRADING VOLUME
AM EX
37
' 35 - STOCK PRICES

Weekly

AMEX PRICE LEVEL INDEX
29
S&P's 500

(Ind)

(500)

1300

130

1260

126

1220

122

1180

118

1140

114

1100

110

1060

106

1020

102

980

98

900

90

860

D J IND

780

78

740

74

AMEX TRADING VOLUME (TOTAL FOR WEEK)
40

20

- NYSE TRADING VOLUME (TOTAL FOR WEEK)

40

nij! ,i ,i!!u,ji!!,i iljiiji',

20

/'jiyp'1 ,',;i •' ij f1]

SiiffiiS

i

1965

1966

i




1967

1968

1969

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 BY
BROKERS AND
FREE CREDIT
DEALERS 3
BALANCES

Outstanding*
1968 - Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1969 - Jan.
Feb.
Mar.
Apr. £ !

.

6,190
6,430
6,640
6,690
6,500
6,460
6,390
6,250
6,200
6,200
5,930
5,750
5,600
5,630

2,370
2,350
2,360
2,410
2,420
2,490
2,520
2,560
2,630
2,710
2,750
2,810
2,780
2,760

8,560
8,780
9,000
9,100
8,920
8,950
8,910
8,810
8,830
8,900
8,680
8,560
8,380
8,390

7,248
7,701
8,268
8,728
8,861
8,489
8,724
8,859
9,029
9,970
9,107
9,148
8,318
8,044

2,692
2,979
3,064
3,293
3,269
2,984
3,126
3,407
3,419
3,717
3,597
3,647
3,294
3,077

4,556
4,722
5,204
5,435
5,592
5,505
5,590
5,452
5,610
6,073
5,510
5,501
5,024
4,967

-20
10
50
10
70
30
40
70
80
40
60
-30
-20

220
220
100
-180
30
-40
100
20
80
-220
-120
-180
10

453
567
460
133
-371
235
135
170
761
-683
-51
-830
-274

287
85
229
-24
-285
142
281
12
298
-120
50
-351
-217

166
482
231
156
-86
85
-138
158
563
-501
-.9
t-477
-57

:

-

Change in
Outstanding:
1968 Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1969 - Jan.
Feb.
Mar.
Apr. £/
1

2
3

240
210
50
-190
-40
-70
-140
-50
--

-270
-180
-150
30

|.

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 arid 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

MUTUAL SAVINGS BANKS
REGULAR DEPOSITS 3
NET
N EW •
ANNUAL
MONEY 2
GROWTH
NET
FLOW
RATE.1

SAVINGS ST LOAN ASSOCIATIONS
SHARE CAPITAL '
NET
ANNUAL
- NEW
NET"
GROWTH
MONEY 2
FLOW
RATE 1 1

TOTAL
DEPOSITS
ANNUAL
NET'
GROWTH
RATE 1
FLOW

1
|

NET
NEW
MONEY'2

Not Seasonally Adiustud
1966
1967
1968
1968 - Feb.
Mar.
Apr.
1969 - Feb.
Mar;
Apr. £/

2,557
5,082
4,186
350;
645 \
-75
, 331 '
642
-200

4.9
9.3
7.0
-.
-—

227
2,3.76
1,143

3,584
10,687
7,396

301
117
-189

584
1,275
-294

--

264
81
-325

605
1,370
-492

-—

620
620

5.7
5.7

523
582
895
214

4.8
5.3
8.1
1.9

3.2
9.4
. 5.9
--

-'

-552
6,129
2,676

6,141
15,769
111,582

559
541
-324

/ 934
1,920
-369

569
524
-536

986
2,012
-692

3.8
9.4
6.3

-325
8,505
3,819
860
658
-513

—

--

833
605.
-861

Seasonally Adiusted
1

1968 - Nov.
Dec.

395
362

7.5
6.8

. "" ™

1969 - Jan.
Feb.
Mar.
Apr. 2./

220
384
382
157

4.1
7.2
7.1
2.9

. —-

--

'
—

1,015
982 .

6.3
6.1

743
966
1,277
371

4.6
5.9
7.8
2.2

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 9670 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.
Preliminary.
I
S&L series reflects FHLB revisions of data shown here through 1968.







1

f dollars

2000
1600
TOTAL

1200
800
400

+
0

400

1200
SAVINGS & LOANS

800
400

+
0

400

800
MUTUAL SAVINGS BANKS
400

+
0

400

\:

TABLE 11: Mortgage Commitments at Selected Thrift Institutions

DATE

1968 - Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1969 - Jan.
Feb.
Mar.
Apr. £,/

V

TOTAL

1

OUTSTANDING COMMITMENTS
| ' • • /.
\ NET CHANGE
•• /
ALL
ALL
MUTUAL
•I
SAVINGS
SAVINGS &
TOTAL
SAVINGS &
BANKS
LOAN
LOAN
(N.Y. STATE)
ASSOCIATIONS
ASSOCIATIONS
(Billions of Dollars, Seas onally Adjusted) JL/

8.7
8.6
8.6
8.8
9.0
9.1
9.5
9.7
9.7

6.2
6.0
5.9
6.1
6.1
6.2
6.4
6.5
6.6

2.5
2.6
2.6
2.7
2.9
2.9
3.0
3.2
3.1

.14
-.13
-.04
.24
.16
.14
.35
.27
-.01

.14
-.16
-.10
.16

9.9
10.1
10.3
10.5

.6.7
6.9
7.0
7.2

3.2
3.2
3.3
3.3

.15
.25
.17
.18

.08
.22
.09
.17

MUTUAL
SAVINGS
BANKS ,
(N.Y. STATE)

--

.02
.06
.08
.16
.04
.13
.17
-.10

.10
.22
.10
.08
\

Based on data from Federal Home Loan Bank Board and Savings Banks Associations of
New York State. Net changes are derived directly from unrounded outstandings
levels as reported and after seasonal adjustment by Federal Reserve. Subtotals
may not add to totals because of rounding. Mutual Savings Banks and total data include building loans beginning August 1967.




.07
.03
. 08
.01

MORTGAGE COMMITMENTS OUTSTANDING (seasonally adjusted)
Monthly

Billions of dollars

TOTAL

S&L'S

N.Y-MSB'S

* Includes building loans beginning August 1967

1960




1962

1964

1966

1968

1970

TABLE 12: Net Change in Mortgage Holdings 1

DATE

TOTAL
INCLUDING
FNMA-GNMA

TOTAL

FINANCIAL INSTITUTIONS
MUTUAL
SAVINGS &
COMMERCIAL
SAVINGS
LOAN
BANKS
BANKS
ASSOC.

1965 - I
II
III
IV

4,761
6,365
6,469
6,303

4,813
6,431
6,403
5,947

823
1,749
1,805
1,322

1966 •- I
II
III
IV

5,425
5,648
3,976
3,056

4,630
5,097
3,468
2,587

1967 - I
II
III
IV

2,617
4,868
6,285
6,246

1968 - Apr.
May .
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

1,978
2,238
2,125
1,851
1,982
2,000
2,314
2,088
2,483

1,750
1969 - Jan.
Feb. - 1,770
1,945
Mar.
2,216
Apr.

1

2

965
946
1,072
1,078

1,860
2,706
2,460
1,947

975
1,656
1,300
774

753
513
/39
715

1,683
1,651
373
54

2,267
4,762
5,706
5,484

151
1,200
1,751
1,537

770
786
839
758

486
2,119
2,595
2,320

1,732
2,003
1,905
1,699
1,841
1,892
2,153
1,943
2,311

616
616
616
533
533
746
807
706
404

160
203
219
248
233
221
313
310
340

1,549
1,549
1,740
2,025

500
500
500
600

.

.

293
228
198
204

1,165
1,030
1,066
1,600
f

879
957
901
718
874
810
845
732 .
903
622
671
917
1,040

LIFE
INSURANCE
COMPANIES

1,219
1,277
1,056
1,044

FNMA-GNMA
-52
-66
66
356

.

795
551
508
469

860
657
521
869

350
106
579
762

88
216
169
200
201
115
188
195
664

246
235
220
152
141
108
161
145
172

134
150
125
181

201
221
205
191

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.
FNMA=includes GNMA after September 1, 1968.




NET CHANGE IN MORTGAGE HOLDINGS
Monthly

Billions of dollars

3.0

2.5

TOTAL, INCL. FNMA

2.0

1.5

FINANCIAL INSTITUTIONS

1966




1967

1968

1969

TABLE 13: Net Increases in Mrrtn?n» r>eht Outstanding
Billions of dollars, SAAR 2
- QUARTER

TOTAL

RESIDENTIAL2

1- to 4FAMILY

MULTIFAMILY

1

MULTI-AND
COMMERCIAL

COMMERCIAL

FARM
2.2
2.1
2.2
2.4

3.5
3.5
3.8
3.8

14.7
12.1
8.3
7,2

4.3
- 3.5
2.6
2.3

6.9
6.5
5.4
4.3

11.6
10.0
8.3
6.2

2.4
2.2
2.1
1.7

9.9
13.7
19.1
20.8

6.8
10.5
15.3
16.5

3.0
3.3
3,8
4.4

3.8
4.8
4.8
5.1

7.3
8.1
8.8
8.8

1.8
1.9
2.4
2.6

\8.2
18.6
17.8
21.1

16.3
14.7
14.6
17.0

1.9
3.9
3.2
4.2

6.1
5.3
6.1
7.9

8.3
9.2
9.6
11.2

2.5
2.3
1.8
1.6

1965 - I
II
III
IV

24.9
25.2
25.8
26.6

18.6
18.5
19.3
19.6

15.1
15.1
15.5
15.8

1966 - I
II
III
IV

-28.3
24.2
18.4
15.6

19.0
15.6
10.8
"9.5

1967 - I
. II
III
IV

15.5
20.4
26.3 ^ ^
28.5

1968 - I
II
III
IV

28.8
26.1
25.6
30.7

-

.

8.0
8.1
8.4
7.9

4.2
4.5
4.4
4.6

-

1

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.
2
Residential mortgage debt includes nonfarm only and is sum of 1-to 4-family
and multifamily mortgage debt combined.
2./
Preliminary.




NET INCREASES IN MORTGAGE DEBT OUTSTANDING
Quarterly

Billions of dollarSTseasonally adjusted annual rate

32

I

1-4 FAMILY

COMMERCIAL

MULTIFAMILY

1965




1967

1969

TABLE 14: FNMA Weekly '"Auction" Results

WEEK
ENDED

TOTAL
OFFERED

AMOUNTS IN $ MILLIONS
ACCEPTED •
TOTAL
3612-18—^
MOS.
MONTHS MONTHS

182.9
175.9
144.7
128.1
157.7

93.1
102.5
101.1
100.9
84.1

4.6

5
12
19
26

170.8
210.4
236.2
263.0

84.4
85.0
83.3
96.1

June 2

304.6
291.6

1969 - Apr. 1
7
14
21
28
May

16g/

IMPLICIT YIELD
3-.
MOS.

6MONTHS

8.10
8.05
/7.94

8.11
8.13
8.10
8.05
7.94

12-18^/
MONTHS

7.9
4.6
4.8

47.2
57.8
52.3
59.8
58.7

41.4
36.5
40.9
36.5
20.5

6.7
9.3
13.8
12.3

58.2
55.9
51.0
67.8

19.5
19.7
18.5

7.89
7.87
7.87
7.89

7.90
7.89
7.88
7.91

7.83
7.81
7.81
7.84

103.0 15.3
1 0 0 . 2 , , 21.3
(100.07

65.5
57.7

22.1

7.92
7.99

8.01

7.95

7.86
7.92

8.2

16.0

21.2

8.12

8.10

7.98

8.01
7.98
7.93
7.86

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
tjfime within the specified period. Bids on prdposed homes relate to
construction not yet started on which mortgages may be delivered only
after completion and occupancy.
1




For "proposed construction" of new homes only.
Average secondary market yield after allowance for commitment fee and
required purchase and holding of FNMA stock, assuming prepayment of
15 years for 30-year Government-underwritten mortgages. Yields shown
are gross, before deduction of 50 basis points fee paid by investors
to servicers.
FNMA announced limit of accepted bids for next week's auction

FNMA WEEKLY "AUCTION" RESULTS

Millions
~~1 120

AMOUNT OF ACCEPTED BIDS BY COMMITMENT PERIOD

100

1 YEAR
AND OVER

- 60

40

6 MONTHS

20

3 MONTHS

Per cent
8.6

- I M P L I C I T YIELD
6-MONTH COMMITMENTS

8.0

7.4

6.8
$ Millions
400

300

200

TOTAL BIDS RECEIVED

100
TOTAL BIDS
ACCEPTED
DEC.

JUNE

1968




JUNE.

1969

AUG.

OCT,

DEC,

TABLE 15: Private Housing Starts and Permits
STARTS

DATE

SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL|1-FAMILY 2 OR MORE

1968 - Apr.
May
June
July
^
Aug.
Sept.
Oct.
Nov.
Dec.

1,591
1,364
1,365
1,531
1,518
1,592
1,570
1,733
1,509

1969 - Jan.
Feb.
Mar.
Apr.

1,878
1,686
1,580
1,543

1

2

922
838
790
904
867
944
965
905
922

669
526
575
627
651
648
605
828
585

1,066
975
826
785

812
711
754
758

TOTAL

,

162.0
140.9
137.9
139.8
136.6
134.3
140.8
127.1
96.4
101.5
90.0
131.5
157.0

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2

UNADJUSTED
TYPE OF FINANCING
I FHA VA
OTHER

.

22.6
20.5
19,8
18.8
20.9
18.6
21.4
17.5
16.3

5.4
5.5
5,0
4.9
4.8
4.6
5.3
4.2
4.4

134.0
114.9
113.1
116.2
110.9
111.1
114.0
105.4
75.7

14.2
13.2
18.9
22.9

3.8
3.5
3.9
4.4

83.5
73.3
108.7
129.7

r

|

1,340
1,280
1,281
1,289
1,290
1,393
1,378
1,425
1,463
1,403
1,477
1,421
1,449

Total.starts are Census estimates including farm for both permit-issuing and
noi.-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 inelude 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 arid coverage.




0
\
^
\

PRIVATE HOUSING STARTS AND PERMITS
M o n t h l y , a n n u a l rates

Millions of units

SEASONALLY ADJUSTED

2.0

HOUSING STARTS

1.6

1.2

BUILDING PERMITS

PER CENT OF UNADJUSTED TOTAL STARTS

MULTI-FAMILY
(2 or more)

y

GOVERNMENT UNDERWRITTEN
1963




1965

1969

TABLE 16: Mortgage and Bond Yields
FHA
MORTGAGES

2

. DATE
25-YEAR 30-YEAR

CONVENTIONAL
MORTGAGES
3

SPREAD BETWEEN. YIELDS
ON C0NV. &
FHA MORTGAGES

NEW
Aaa CORPORATE
BONDS
4
= 4.94
3.65
5.25
4.41
5.82
6.51
5.18
6.79
6.15

1957. - High
1958 - Low
1959-60 - High
1961-66 - Low
1966 - High
1967 - High
Low
1968 - High
Low

5.63
5.35
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

6.00
5.55
6.30
5.80
6.70
6.65
6.40
7.30
6.75

.47
.15
.23
.25
.30
.11
-.12
.02
-.27

1968 - Nov.
Dec.
1969 - Jan.
" Feb.
. Mar.
Apr.

n.a.
n.a.
n. a.
n. a.
n.a.
h. a.

7.36
7.50

7.30
7.40
7.55
7.60
7.65
7.75

-.06
-.10

V

—

7.99
8.05
8.06

1

—*

-.39
-.40
-.31

•

6.61
6.79
6.92
6.91
7.37
7.17

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES
.

1.58
.88
1.69
.77
1.16
1.28
.27
1.20
.26

.75
.71
--

1.08
.68
.89

Neither mortgage nor bond yields include allowance for servicing costs which are
much higher for mortgages than for bonds. Generally, bonds pay interest semiannually; mortgages, monthly. Mortgage yields, if computed as equivalent to
a semi-annual interest investment, would be slightly higher than given in the
table.
.
2 Based on FHA-field-office opinions about average bid prices in the private
secondary market for new-home mortgages for immediate delivery. Separate
data^available for 25-year and--beginning July 1961--30-year mortgages with
; minimum downpayments, weighted by probable, volume of transactions. Yields
computed by FHA, assuming prepayment period of 12 years for 25-year mortgages
and 15 years for 30-year mortgages. Over the period for which they can he
compared, the movement of the two mortgage yield series has been similar.
Dashed lines indicate periods of adjustment to changes in contractual interest
rates.
3
Based on FHA-field-office opinion on typical' interest rates (rounded) on con. ventional first mortgages prevailing" in the market areas of insuring office
cities. Beginning with April 1960, rate relates only to new-home mortgages;
pjrior to that date, rate related to both new as well as existing-home mortgages. Dashed line indicates this change in the series.
4
See note for Table 1.




MORTGAGE AND BOND YIELDS

mommy

HOME MORTGAGES:
CONVENTIONAL

Aaa CORPORATE BONDS:
NEW ISSUES
Z V X / "

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

Basis points
~ ~ n

200

100

1962




1964

1966

1968

1970

TABLE 17: Conventional Mortgage Terms

DATE

NEW HOMES
CON- FEES &
1
TRACT CHARGES r.rrrc- MATURITY
(YEARS)
(!'!•;<
ViM.
CENT) RATE
(PER
CENT)
3
2

1

EXISTING HOMES
CON- FEES &
LOAN/
LOAN/
TRACT CHARGES EFFEC- MATU- PRICK
PRICE LOAN
(PER
RATE
RATIO AMT.
TIVE
RITY RATIO
CENT) RATE (YEARS) (PER
(PER ($000) - (PER
.CENT)
CENT)
CENT)
2
3
4

LOAN
AMT.
($000)
4

1968
Apr.
6.57
May
6.69
;
V
;
!
V
6.88
s
July - •.7.03
Aug.
7.10
Sept. 7.10
Oct.
7.09
N o v . ^ 7.07
Dec.
7.09

0.88
6.71
6.84
0.95
0.95
7.03
0.85
7.17
0.87
7.24
0.87
7.24
0.88
7.23
0.84 . 7.21
0.89
7.23

25 .3
25,.0
25 .4
25,.5
25.,5
25.,5
25.,6
25.,4
25. 9

73.4
73.2
74.4
73.7
73.6
74.2
74.5
74.1
74.0

21.9
21.7
22.3
22.2
22.6
22.1
22.7
22.5
24.7

6.64
6.81
6.97
7.10
7.12
7.11
7.09
7.07
7.09

0 .80
0,.87
0,.86
0,,83
0.,85
0,,82
0.,84
0. 82
0. 85

6.77
6.95
7.12
7.23
7.26
7.25
7.22
7.21
7.23

22.6
22.5
22.6
22.5
22.7
22.6
22.5
22.7
23.3

72.8
73.1
73.1
72.6
73.0
72.6
72.4
72.9
73.2

18.1
18.3
18.2
18.5
18.6
18.3
18.3
18.9
20.4

0.84
0.81
0.93
0.98

25. 6
25. 6
25. 8
25. 5

73.6
73.3
73.8
73.4

24.1
23.5
24.0
25.1

7.18
7.28
7.35
7.46

0. 86
' 0.86
0. 84
0. 85

7.32
7.42
7.49
7.60

22.8 . 72.6
22.9 72.8
23.0 72.7
23.0 72.2

20.0
19.6
20,2
20.0

1969
7.16
Feb.'
7.26
Mar-. ~ 7.32
Apr. £/ 7.46
Jain.

7.30
7.39
7.47
7.62

1

Compiled by Federal Home Loan Bank Board in cooperation with Federal' Deposit Insurance
Corporation. Data are weighted averages.based on probability sample survey of characteristics of conventional first mortgages originated by major institutional lender
• groups (including mortgage companies) for purchase of single family homes. Data exclude loans for-refinancing, reconditioning or modernization;.construction loans to
home-builders; and permanent loans which are coupled with construction loans to ownerbuilders. Related series on conventional mortgage rates only, based on unweighted
" opinions-of field-office directors of the Federal Housing Administration, are availablesomewhat 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 by the borrower. They exclude any closing costs related solely to
transfer of property ownership.

3

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

4

Derived by FRB.




CONVENTIONAL MORTGAGE TERMS
Monthly

30

MATURITY
25

EXISTING

20

LOAN/PRICE RATIO

EXISTING
70

65
1963




1965

1969
* CHANGE IN SERIES