Full text of H.16 Capital Market Developments : June 23, 1969

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CjUflDEiRlAL

DBC01,TE01LBD

six MOMTHS

L.5.8 Confidential

'CluizjLfJune 23, 1969:

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 Y i e l d s

8-13

C a p i t a l 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:

CORPORATE BOND MARKET
VOLUME;2

YIELDS
MOODY'S
SEASONED
NEW ISSUE 1
Aaa

GROSS
OFFERINGS

PER CENT
SOLD BY END
OF WEEK

BONDS SCHEDULED
WITHIN 28 DAYS

1969 - May

23
30

7.28
7.44

6.78
6.83

197
88

78
45

926
731

June

6
13
20
27

7.52
7.75
7.66
n. a.

6.90
6,96'
7,03/
n. a .

226
267
455
160e

73
96:
91
n.a.

644
432
687

WEEK ENDING:

1969 - May

June

MOODY'S
SEASONED
Aaa

YIELDS
BOND BUYER
SEASONED 20
BOND INDEX

23
30

5.30
5.40

5.46
5.60

6
13
20
27

5.55
5.60 y
5.60^

5.73
5.82
5.79
n. a.

n.a.

MUNICIPAL BOND MARKET
VOLUME 2
GROSS
OFFERINGS

,

PER CENT
SOLD BY END
. OF WEEK

BONDS SCHEDULED
WITHIN 28 DAYS

364
249

63
76

627
502

221
110
180p
180e

73
89
79
n. a.

365
439
552
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




TABLE 2: Details on Inventories

.

DATE
OFFERED

6/18
6/18

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

AMOUNT
(MIL. $)

60.0
5.0

Indiana & Michigan Elec.
. Brockton Edison 1st

8.00
8
-3/8

7.75.
8,20

A
A

5 years
N . C.

ESTIMATED PROPORTION SOLD

35%
60%

\

OFFERED

DATE
| RELEXSED

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

AMOUNT

DATE
1969 - May

23
30
June 6
13
20 £ /

INVENTORIES 1
MUNICIPALS
IN SYNDICATE
BLUE LIST
T
583
509
509
r/461
~ 400

215
182
164
118
80

CORPORATES
IN SYNDICATE
54
59
101
3
41

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
of three days ended Wednesday. All other figures are as of Friday.

Digitized forwhich
FRASER
is daily average


BONDS IN SYNDICATE
Millions of dollars
C O R P O R A T E B O N D S IN S Y N D I C A T E

200
100

i — i — i — r — i

I • i ' — ! — l — i — i — r — T — i l l — i — r
M U N I C I P A L B O N D S IN S Y N D I C A T E

i

i

300

200
100

SEPT.

DEC.
'67




MAR.

JUN.

SEPT.

DEC.

MAR

JUN.

1968

1969

\

SEPT.

DEC.

TABLE 3: High Grade Bond Yields

MOODY'S SEASONED
CORPORATE
Aaa 2

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

BOND
BUYER'S
SEASONED
MUNICIPALS 4

DATE

NEW
CORPORATE
Aaa1

1967 - High
Low

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

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

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

4.45(12/7)
3 40(2/2)

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(12/26)
4.07(8/8)

1969 - High
Low

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

7.03(6/20)
6.55(1/3)

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

5.82(6/12)
4.82(1/23)
V

23
7.28
6.78
6.19
5.46
30
7.44
6.83
6.41
5.60
June 6
7.52
6.90
6.37
5. 73
13
6.96 /
. 6.27
5.82
V . l l s
20 P Z
7.03 Z
6.25e
5.79
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.

1969 - May




HIGH GRADE BOND YIELDS

NEW CORPORATE Aaa

MOODY'S
V
CORPORATE Aaa

U S. GOVT. 20 YR.
CONSTANT MATURITIES

BOND BUYER MUNICIPAL Aaa

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
January .
February
March

^

196'8p

1967

|

i
'

I

2,075
2,045
2,098

1,771
1,608
1,799

1,684
1,418
2,362

April
May
June

2,410e
2,050
2,325e

1,4281,866
2,411

2,015, 1
1,518 j
2,674

July
August
September

2 ,300e

2,143
1,432
1,557

2,589
2,481.
1,763

2,129
1,767
2,054

2,409 .
1,500
2,385

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

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

10,882
16,015
21,965

11,672
18,504
24,798

October
November
* December
1st
2nd
3rd
4th"

Quarter
Quarter
Quarter
Quarter

1st half
Three quarters
Year.

6,218
6,785

STATE AND LOCAL 2

j

j •

1968p

1967

1,260
986
525

1,178
1,158
1,404

1,492
1,236
1,450

1,778
l,Q75e

1,318
1,143
1,395

1,130
1,254
1,497

1,469
1,699
1,444

950
860
1,340

2,230
1,021
1,115

975
1,401
1,182

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

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

7,956
12,008
16,574

8,059
11,209
14,766

L969p

600e
600e

2,771
3 ,753e

Excluding finance companies 3

=

Tst
2nd
3rd
4th

Quaxter
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

TOTAL

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

1968 - I
II
III
IV
1969 - I
lie/

5,1.78
5,705
5,133
5,951
6,218

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

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

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

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

1

1
1
1
1
1

724
644
361
922
539

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

3113
172
124
113
215

989
956
1,166
1,474
2,023

300
385
372
396
398
525
466
483
460
808
755
600
600

.

89
52
47
49
28
24
49
40
103
74
38
n. a.
n.a.

GROSS PROCEEDS BY
TYPE OF ISSUER
PUBLIC
UTILITY

OTHER
ISSUERS 1

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

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

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

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

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

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

TYPE

2

AMOUNT.
(MILLIONS
OF
DOLLARS)

MATURITY

COUPON
RATI-/ OR
Nl-T L TITER. KST COST

OFFERING
YIELD

MOODY'.1
RATING

Corporate
35.0
Pfd. stk.
Virginia Elec. & Pwr. Co.
28.0
Pennsylvania Elec. Co.
Rev.
Texas Eastern Transmission
Debs.
50.0
Corporation
1st mtg. bds. 50.0
Consumers Power Company
75.0
Bds.
Virginia Elec. & Pwr.
Paper Craft Corporation
Conv. debs.
15.0
1st mtg. bds. 50.0
Florida Power & Light Co.
Pennsylvania Power & Light
Company
1st mtg. bds. 40.0
60.0
Shell Pipe Line Corporation Debs.
Beneficial Finance
Debs.
50.0
1st mtg.
25.0
Wiocohsin Power & Light
Illinois Bell Tele. Company 1st mtg. bds. 150.0
Carrier Corporation
Conv. debs.
25.0
Indiana & Michigan Elec. Co. 1st mtg. bds. , 60.0
South Carolina Elec. & Gas
Company
Rev.
35.0
Standard Oil Company
Debs.
100.0
Reichhold Chemicals Inc.
Debs.
25.0
Budd Company
Conv. debs.
30.0




1999

8

7.85

A

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»
Aaa
Aa
Ba
Aa

1999
1999
1971
1999
2005
1989
1974

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

8.00
7.50
8.375
8.00
7.83
5.13
7.75

Aa
Aaa
N.R.
Aa
Aaa
Baa
A

1999
1999
1994
1994

8
7.60
8
5-7/8

8.00
7.60
8.10
5.88

A
A
Baa
Ba

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

ISSUER

TYPE 2

AMOUNT
(MILLIONS
OF
DOLLARS)

June 2 through June 13. 1969,
COUPON
MOODY'S
OFFERRATI- OR
RATINC
ING
NET 1NTERMATURITY
Y1 ELD
F.ST COST

State & local Government
University of California
Rev.
Phoenix Civic Plaza Bldg.
Corp., Arizona
Rev.
King Co., Washington
G.O.
Los Angeles Dept. of Water
and Power
. Rev.
Albany Co., New York
G.O.
Nassau Co., New York .
G.O.

16.2

1969-2006

3.00

5.40-5.90

19.0
28.3

1973-1999
1971-2009

6.43
6.07

5.40-5.90
5.50-6.20

A

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

Aa
A
A

Other — ^
Tennessee Valley Auth.
Alberta Gov't. Telephone
Commission
Argentine Republic

.

Rev.
Debs.
Bds.

100.0.
30.0
25.0

1974

8.00

1994-98
1979

8 #00

7.75
8.19

Aa

i

Rights offering.
Includes corporate and. other security offerings of $15 million and overstate and local security offerings of $10 million and over.
2
In case of State and local government securities, G.O. denotes general obligation;
!<ev.-Ut., revenue obligations secured only by income from public utilities;
Rev.-Q.-Ut., revenue bonds secured only by income from quasi-utilities; Rev.-S.T.,
revenue bonds secured by revenue from specific taxes only; Rev.-Rent., revenue (
bonds secured solely by lease payments.
3
Includes foreign government and International Bank for Reconstruction and
FRASERDevelopment issues and non-quaranteed issues by Federal Agencies.
*
1

Digitized for


x

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
Fisher Foods, Inc.
West Petma. Power Co.
Colorado Interstate Corp.
Duquesne Light Co.
Consumers Power Co.
Hawaiian Telephone Co.
Michigan Wisconsin Pipe
Line Co.
C o n t i n e n t a l Oil
So., Bell Tele. & Tel. Co.
Vernitron Corp.
*Lomas & Nettleton Fin.Corp.
^Cleveland Elec. Illuminating
^Wisconsin Gas Co.
^Consolidated Natural Gas Co.
*Nat'l. Fuel Gas Co.




Debs.
1st mtg.
Bonds
1st mtg. bds.
Pfd. stk.
Rev.
Bonds
Debs.
Debs.
Conv. debs.
Conv. debs.
Bonds
Bonds
Debs.
Debs.

18 .0
25 .0
30 .0
30,.0
35,,0
25,.0
40.,0
100. 0
150.,0
20.,0
25. 0
30. 0-60.0
16. 0
30. 0
20. 0

June
June
June
June
June
June

24
24
24
25
25
26

June 30
July 2
July 8
July 8
July 10
July 15
July. 15
July 22
July 23

13
TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury) 1
AS or June ZJ.
AMOUNT
(MILLIONS
APPROXIMATE DATE
ISSUER
TYPE
OF OFFERING
OF
DOLLARS)
State & local Government
Shreveport, Louisiana
Newark, New Jersey
Hempstead, New York
Minnesota, State of
Massachusetts, State of
Coastal Industrial Wtr.
. Auth., Texas
Port of New York Auth.
Louisiana State Bd. Comm.
Philadelphia, Pennsylvania
^Alaska
*Ft. Wayne Comm. Sch.
Bldg. Corp. Ind.
Tallahasee, Florida
^Allegheny Co., Pa.
Oklahoma
*Los Angeles Dept. of
Airports
*Hempsted S.D. #1, N.Y.
^Commonwealth of Penn.

.

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

14.,0
20..5
10,.0
42 .0
28..5

June
June
June
June.
June

24
24
24
24
24

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

19. 0
33.,5
15.,0
60.,6
10.,5

June
June
July
July
July

25
25
1
1
1

1st mtg.
Rev.
G.O.
G.O.

20.,8
12.,0
34.,5
30. 3

July
July
July
July

8
9
10
15

60. 0
10. 7
125. 0

July
July
July

15
21
22

30. 0

June

26

-

Rev.
G:O.
Bds.

\

Other
Canadian Pacific
Railway Company

_____

*
1
2

Equip.

•

.-

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: Pennsylvania Higher Education Fac. Auth. 22.1; no
bids received. Washington Gas Light Company, 20.0; market conditions. State
of Maryland, 59.8; market conditions.




TABLE 8: Stock Prices and Volume
TRADING VOLUME 2

STOCK PRICES 1
S&P
500

DATE

AMEX4

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)

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

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

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

1969 - High
Low,

105.94(5/16) 968.85(5/14) 3 2 . 9 1 H / 3 )
96.67(6/20)^876.16(6/20) 27.99(6/20)

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

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

1969 - May 23
30

104.59
103.46

D.J. - IND.

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

1967 - High
Low
1968 - High

87.72(3/5)

Low

June 6 102.12
13
98.65
20 £ y 96.67

'

947.45
937.56

31,11
31.03

56.8.
42.7

27.8
22.2

924.77
894.84
876.16

30.52
29.27
27.99

56.1
59.9
56.5

30.3

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

26.8
22.7

Highs and lows are

Total number of shares traded per week (millions of shares). I n 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.
1941-43

10.

Average'dollar value of shares listed.
£/ Preliminary.




.

15

STOCK PRICES AND TRADING VOLUME

S&P
(500)

AMEX

D.J.
(Ind)

37

1300

130

1260

126
122

. STOCK PRICES
-

1220

-

1180

118

-

1140

114

AMEX PRICE LEVEL INDEX /

V

1100

110

1060

106

»

1020

102

-

980

98

S&P's 500

-

940

94

900

90

860

86

-

820

82

780

78

-

740

74

DJ. IND.

AMEX TRADING VOLUME (TOTAL FOR WEEK),

40
,I . I,

lllllllll I,
20
0

,i: :.L.
. NYSE TRADING VOLUME (TOTAL FOR WEEK)

80
60

3!

ill
1965

40

• f l l i l

iiSii:!;!:!;!:!;
1966




1967

1968

20
0
1969

17
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. £ Z

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

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
-477
-57

Change in ...
Outstanding;
1968 Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1969 - Jan.
Feb.
Mar.
Apr. 2/
1

2
3

240
210
50
-190
-40
-70
-140
-50
-270
-180
-150
30

-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

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; bankdata 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
NET
REGULAR DEPOSITS 3
NEW
ANNUAL
MONEY 2
GROWTH
NET
1
RATE
FLOW

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

TOTAL .
DEPOSITS
ANNUAL
NET
. GROWTH
RATE 1
FLOW

NET
NEW
MONEY 2 •

Not Seasonally Adiustud
1966
1967
1968

2,557
5,082
4,186

1968 - Mar.
Apr.
May

645
-75
363

1969 - Mar.

642
-197
315

Apr .2/
May £/

4.9
9.3
7.0

—
-—

'

1968 -

Dec.

1969 - Jan.
Feb.
Mar.
Apr. p/
May
1
2
3

p
*

:

227
2,376
1,143

3,584
10,687
7,396

117
-189
300

1,275
-294
757

81
-325
235

1,370
-492
619

•

362

6.8

220
384
382
160
364

4.1
7.2
7.1
3.0
6.7

3.2
9.4
5.9

—w

--

-552
6,129
2,676

6,141
15,769
11,582

541
-324
722
524
-536
601

3.8
9.4
6.3

-325
8,505
3,819

1,920
-369
1,120

--

658
-513
1,022

2,012
-689
934

--

605
-861
836

Seasonally Adiusted

--

---

620

5.7

982

6.1

523
582
895
214
476

4.8
5.3
8.1
1.9
4,3

743
966
1,277
374
840

4.6
5.9
7.8
2.3
5.1

——

Annual growth rate for monthly data is the annualized monthly percentage increase in deposits.
Net New Money is new deposits net of both withdrawals and interest. Data for S&Ls are for
insured associations only, which represent 96% of industry total resources.
Regular deposits at mutual savings banks exclude items such as Christmas club and certain
escrow accounts, which represent a very small part of total deposits.
SOURCE: National Association of Mutual Savings Banks and Federal Home Loan Bank Board,
Preliminary.
S&L series reflects FHLB revisions of data shown here through 1968.




—— -

—

--

SAVINGS FLOWS (seasonally adjusted)
Monthly

Millions of dollars

2000
1600
TOTAL

1200
800

i i i 1 i i i r i i ii i M

S A V I N G S & LOANS

800
x

\

^

M U T U A L S A V I N G S BANKS

-

1

1965

1

1966




, ' 1 ' i i i i ; i i i i i 1 i i ri

1967

1968

i i i i m

1969

-

400

i

400

40

\

DATE

•
•
..
•
•
;
•
TABLE 11: Mortgage Commitments at Selected Thrift Institutions

TOTAL

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

TOTAL

NET CHANGE
ALL
SAVINGS &
LOAN
ASSOCIATIONS

MUTUAL
SAVINGS
BANKS
(N.Y. STATE)

(Billions of Dollars, Seas onally Adjusted)1 If

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

8.6
8.6
8.8
9.0
9.1
9.5
9.7
9.7

6.0
5.9
6.1
6.1
6.2
6.4
6.5
6.6

1969 - Jan.
Feb.
Mar.
Apr.
May £ /

9.9
10.1
10.3
10.5
10.3

.6.7
6.9
7.0
7.2
7.1

1

.

2.6
2.6
2.7
2.9
2.9
3.0
3.2
3.1

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

-.16
-.10
.16
.10
.22
.10
.08

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

3.2
3.2
3.3
3.3
3.2

.15
.25
.17
.19
-.19

.08
.22
.09
.18
-.10

.07
.03
.08
.01
-09

—

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.




MORTGAGE COMMITMENTS OUTSTANDING (seasonally adjusted)
Monthly

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

DATE

TOTAL
INCLUDING
FNMA-GNMA

TOTAL

1

FINANCIAL INSTITUTIONS
•
• i
LIFE
MUTUAL
SAVINGS &
l
•
INSURANCE • FNMA-GNMA i
COMMERCIAL
SAVINGS
LOAN
BANKS '
"COMPANIES
BANKS
ASSOC.
'
1

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

965
946
1)072
1,078

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

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

-52
-66
66
356

1966 - I
II
III
IV

5,425
5,648
3,976
3,056 •

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

975
1,656
1,300
774

753
513
739
715

1,683
1,651
373
54

1,219 „
1,277
1,056
1,044

795
551
508
469

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

860
657
521
869

350
106
579
762

879
957
901
718
874
810
845
732
903

88
216
169
200
201
115
188
195
664

246
235
220
152
141
108
161
145 .
172

622
671
917
1,040

134
150
125
.181

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

-1,732
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

1969 - Jan.
Feb.
Mar.
Apr.

1,750
1,770
1,945
2,216

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

500
500
500
600

293
228
198
204

.

;
•!

201
221
205
191

1
1

Monthly data for commercial banks based on Federal Reserve estimates benehma r ked^'f/
to Call Report data on real estate loans outstanding as available. Other data
y
derived .from mortgage debt outstanding as reported separately by National Assn. ?
of Mutual Savings Banks, Federal Home Loan Bank Board, Institute of Life Insurant!'
... and, through August 1968, the Federal National Mortgage Association, and there- r
after 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 for1/,
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,
2
FNMA includes GNMA after September 1, 1968.




NET CHANGE IN MORTGAGE HOLDINGS
Monthly

Billions of dollars

TOTAL, INCL FNMA

FINANCIAL INSTITUTIONS

1966




1967

1968

1969

24. ,
TABLE 13: Net Increases in Mnrto^e Debt Outstanding
Billions of dollars, SAAR 2
MULTIFAMILY

1

MULTI-AND
COMMERCIAL

QUARTER

TOTAL

RESIDENTIAL 2

1- to 4FAMILY

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

3.5
3.5
3.8 3.8

4.2
4.5
4.4
4.6

8.0
8.1
8.4
7.9

2.2
2.1
2.2
2.4

1966 - I
II
III
IV

28.3
24.2
18.4
15.6

19.0
15.6
10.8
'9.5

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

1967 - I
II
^
III
IV

15.5
20.4
26.3
28.6

9.9
13.7
19.1
20.9

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

1968 - I
II
III
IV

26.9
25.8
25.8
31.4

18.2
17.9
17.6
21.5

15.4
14.8
14.1
17.0

2.8
3.1
3.5
4.5

6.2
5.6
6.4
8.2

9.4
8.7
10.2
11.8

2.4
2.3
1.8
1.7

1969 - I

30.0

21.0

18.0

3.1

7.0

10.6

2.0

1

2
2./

.

COMMERCIAL

FARM

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.
Preliminary.




NET INCREASES IN MORTGAGE DEBT OUTSTANDING
Quarterly

Billions of dollars, seasonally adjusted annual rate

TOTAL

24
TOTAL
RESIDENTIAL

/ 1-4 FAMILY

COMMERCIAL

X

MULTIFAMILY
1965




1967

1969

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

WEEK
ENDED

AMOUNTS IN $ MILLIONS
IMPLICIT YIELD
ACCEPTED
„.
• '\ '•
6612-18^
3- ,
312-18— z
MONTHS' MONTHS
MONTHS
MOS.
MONTHS
MOS.

TOTAL
OFFERED

TOTAL

182.9
175.9
144.7
128.1
157.7

93.1
102.5
101.1
100.9
84.1

4.6
8.2
7.9
4.6
4.8

5
12
19
26

170.8
210.4
236.2
263.0

84.4
85.0
83.3
96.1

6.7
9.3
13.8
12.3

J une 2

304.6
291.6
409. 7

103.0
100.2
100.5
(125.0)

15.3
21.3
15.4
3/

1969, - A p r . 1
' X
. 7
14
21
28
'May

16

23d/

V

47.2
57.8
52.3
59.8
58.7

41.4
36.5
40.9
36.5
20.5

8.10
8.12
8.10
8.05
7.94

8.11
8, 13
8.10
8.05
7.94

58.2
55.9
51.0
67.8

19.5
19.7
18.5

16.0

7.89
7.87
7.87
7.89

7.90
7.89
7.88
7.91

7.83
7.81
7.81
7.84

65.5
57.7

22.1
21.2
18.3

7.92
7.99
8.31

7.95

7.86
7.92
8.14

66.8

8.01
8.26

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
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.
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.

FN MA WEEKLY "AUCTION" RESULTS

Millions
~1 120

AMOUNT OF ACCEPTED BIDS BY COMMITMENT PERIOD

100

1 YEAR
A N D OVER

60

40

6 MONTHS

3 MONTHS

Percent
8.6

—

-IMPLICIT YIELD
6-MONTH COMMITMENTS

8.0

-

7.4

—

1

1

1

1

1

1

1

1

1

1 ' 1 '• 1

1

I

I

I

!

1

:

6.8

$ Millions
400

300

200

TOTAL BIDS RECEIVED

100
TOTAL BIDS
ACCEPTED
JUNE

AUG.

OCT.

1968




DEC.

FEB.

APR.

JUNE

1969

AUG.

OCT.

DEC.

TABLE 15: Private Housing Starts and Permits
STARTS
SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE

TOTAL

UNADJUSTED
TYPE OF FINANCING
FHA VA
OTHER

922
838
790
904
867
944
965
905
922

669
526
575
627
651
648
605
828
585

162.0

22.6

140.9
137.9
139.8
136.6
134.3
140.8
127.1
96.4

20.5
19.8

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.
May .

1,878
1,686
1,584
1,556
1,509

1,066

812
711
756
768
634

101.5
90.0
131.9
158.3
155.2

1968 - Apr.
May
June
July

Aug.

975
828
788
875

18.8

20.9

18.6
21.4
17.5
16.3
14.2
13.2
18.9
23.0

21.1

134.0
114.9
113.1

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2

5.4
5.5
5.0
4.9
4.8
4.6
5.3
4.2
4.4

110.9
111.1
114.0
105.4
75.7

1,281
1.289
1.290
1,393
1,378
1,425
1,463

3.8
3.5
3.9
4.4
4.3

83.5
73.3
109.1130.9
129.8

1,403
1,477
1,421
1,502
1,370

116.2

1,340

1,280

i •Total stafts are Census ^estimates"Including farm for both permit-issuing and
noii-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.




PRIVATE HOUSING STARTS AND PERMITS
Monthly .annual rates

Millions of units

SEASONALLY ADJUSTED

HOUSING STARTS

1.6

1.2

BUILDING PERMITS
(in issuing areas)

PER CENT OF UNADJUSTED TOTAL STARTS

MULTI-FAMILY

.

GOVERNMENT UNDERWRITTEN
1963




1965

1967

1969

30

TABLE 16: Mortgage and Bond Yields

25-YEAR 30-YEAR
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.
5.44

CONVENTIONAL
MORTGAGES
3

6.00
5.55
6.30
5.80
6.70

6.81
6.81

6.65

6.29
7.52
6.78

6.40
7.30
6.75

SPREAD BETWEEN YIELDS
ON CONV. &
FHA MORTGAGES
.47
.15
.23
.25
.30

.11

.12

.02
.27

1

NEW
Aaa CORPORATE
BONDS
4

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES

4.94
3.65
5.25
4.41
5.82
6.51
5.18
6.79
6.15

1.58

.88

1.69
.77

1.16
1.28
.27

1.20

.26

1968 - Nov.
n. a.
7.36
7.30
.06
6.61
.75
Dec.
n. a.
7.50
7.40
.10
6.79
.71
1969 - Jan.
n. a.
7.55
——
6.92
Feb.
n. a.
7.99
7.60 \
.39
6.91
1.08
Mar.
n. a.
8.05
.40
7.37
7.65
.68
Apr.
n. a,
May
1 n. a.
1:81 ^ m .
3 i
Neither mortgage nor bond yields include allowance for servicing costs which are
much higher for mortgages than for bonds. Generally, bonds pay interest semi- =
annually; mortgages, monthly. Mortgage yields, if computed as equivalent to
a semi-annual interest investment, would be slightly higher than given in the
table.
Based on FHA-field-office opinions about average bid prices in the private
secondary market for new-home mortgages for immediate delivery. Separate
data available for 25-year and--beginning July 1961--30-year mortgages with
minimum downpayments, weighted by probable volume of. transactions. Yields
computed by FHA, assuming prepayment period of 12 years for 25-year mortgages
and 15 years for 30-year mortgages. Over the period for which they can be
compared, the movement of the two mortgage yield series has been similar.
Dashed lines indicate periods of adjustment to changes in contractual interest
rates.
Based on FHA-field-office opinion on typical interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring office-.
cities. Beginning with April 1960, rate relates only to new-home mortgages;
prior to that date, rate related to both new as well as existing-home mortgages. Dashed line indicates this change in the series.
See note for Table 1.




m

MORTGAGE AND BOND YIELDS

Monthly

9

1

-

8

HOME MORTGAGES:
CONVENTIONAL
FHA

Aaa CORPORATE BONDS:
NEW ISSUES
• / V ^ X /

4

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

.

/

Basis points

200

100

1962




1964

1966

1968

1970

TABLE 17: Conventional Mortgage Terms

DATE

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

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

1

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

LOAN
1
AMT.
($000 J

'a

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

6.57
6.69
6.88
7.04
7.10
7.10
7.09
7.07
7.09

0.88
0.95
0.95
0.85
0.87
0.87
0.88
0.84
0.89

6.71
6.84
7.03
7.17
7.24
7.24
7.23
7.21
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

7.30
7.39
7.47
7.62

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
22.9
23.0
23.0

72.6
72.8
72.7
72.2

20.0
19.6
20.2
20.0

1
1
1
1
1

1969
7.16
Jan.
Feb.
7.26
Mar.
7.32 „
Apr. £/ 7.46

F'
1
1

1

Compiled- by Federal Home Loan Bank Board in cooperation with Federal Deposit Insurance
Corporation. Data are weighted averages basedTon 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 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.




CONVENTIONAL MORTGAGE TERMS
Monthly

Years

30
MATURITY
NEW

EXISTING

80

LOAN/PRICE RATIO

75

NEW

EXISTING

1963




1965

1967

1969
* CHANGE IN SERIES