View original document

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

• E B G o m o H H ) iras. sis m a m

L.5.8

•
.
Confidential (F.R.) _

•

'

.

.

.

/CAPITAL
'MARKET
DEVELOPMENTS

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




JUNE 8 ,

•

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

1
8
15
22
28

June 5
12

YIELDS
MOODY'S
-SEASONED
1
NEW ISSUE
Aaa

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

8.91
8.98
9.10
9.05
9.20

7.92
7.99
8.09
8.16
8.21

195
345
610
284
222

99
100
97
62
96

9.05
n.a.

8.30

261
45 Oe

n.a.

«

2,717
2,636*
2,385*
1,044
819
1,069

*

WEEK ENDING:

1970 - May

June

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

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

1
8
15
22
28

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

5
12 E /

6.75

6.92

90
300e

BONDS SCHEDULED
WITHIN 28 DAYS

77
68
70
63
86
.

530
624
449
508
308 • .

69

6&8
n.a.

1 Derived by adjusting to a Aaa basis, new issues of publicly-offered corporate bonds
with call protection, rated A, Aa, or Aaa by Moody's Investors Service (except serial
and convertible issues, offerings of natural gas pipeline and foreign companies, and
bonds guaranteed by the Federal Government.)
. *
2 Millions of dollars unless otherwise indicated.
Note:
*

See footnotes to Table 3

AT&T rights offerings included in May estimate.




*

TABLE 2: Details on Inventories
CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK
ORIGINALI • RATING AND
YIELD CALL PROTECTION
COUPON
ISSUER '

AMOUNT
(MIL. $)

DATE
OFFERED

Kansas .City Power and Light
Western Mass. Elec.

. 35.0
30.0

6/4
6/3

9-1/8
9-3/8

9.05
9.27

ESTIMATED PROPORTION. SOLD
25 %
50 %

Aaa 5 yrs.
Aa 5 yrs.

•

)

\

• DATE
OFFERED | RELEXSED :

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

AMOUNT

N O N E

INVENTORIES 1
MUNICIPALS
BLUE LIST
|
IN SYNDICATE

DATE
1970 - May

June

8
15
22
29
5^

457
463
499
443

90
128
184
78

378

54

CORPORATES
IN SYNDICATE
0
17
108
' . 9
24

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



BONDS IN SYNDICATE
Friday figures

Millions of dollars

CORPORATE BONDS IN SYNDICATE

200
100
ill
MUNICIPAL BONDS IN SYNDICATE
300

200
100

SEPT.

MAR.

DEC.

68




JUN.

1969

(
i

SEPT.

DEC.

MAR.

JUN.

1970

SEPT.

TABLE 3: High Grade Bond Yields

r

DATE

MOODY'S SEASONED
CORPORATE
Aaa 2

NEW
CORPORATE
Aaa 1

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

BOND
BUYER'S
SEASONED
MUNICIPALS 4

1968 - High
Low

7. 02 (12/13) ,
6. 13 (8/30)

6.55 (1/27)
5.95 (9/13)

5,90 (1/20)
5.18 (8/9)

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)

1970 - High
Low

9. 20 (5/29)
8. 20 (2/27)

8.30 (6/5)
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
,05
9.
9, ,20

8.09
8.16
8.21

7.12
7.17
7.55

6.96
7.02
7.12

8.30

7.33

6.92

June 5^

9. ,05

.

4.85 (1/26)
4.07 (8/8)
-

6.90 (12/18)
4.82 (1/28)

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 gf the 20 bonds used in this index
' falls midway between the folir 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.




"

'

'

'

'

V

'1

HIGH GRADE BOND YIELDS

NEW CORPORATE Aaa

MOODY'S
CORPORATE Aaa

U S. GOVT. 20-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

1969

1

STATE AND LOCAL 2
1968

I

1970

1969

i
i
;

1,338
1,212
1,499

1,262
987
538

1,178
1,158
1,404

l
'
!

1,630
l,000e
1,000e

1,801
1,110
737

1,318
1,143
1,395

1,097
808
559

1,469
1,699
1,444

1,280
886
816

2,230
1,021
1,115

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

3,840
3,856
4,612
4,366

6,435
.8,899
11,881

7,956
12,008
16,574

January
February
March

2,601
1,830
3,400e

2,075
2,045
2,098

1,771
1,608
1,799.

April
May

3,000e
3,500e
2,800e

2,748
2,076
2,530

1,428
1,866
2,411

2,478
1,427
2,427

2,143
1,432
1,557

1,933
2,375
2,532

2,129
1,767
2,054

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

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

13,572
19,904
26,744

10,882
16,015
21,965

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

*

Quarter
Quarter
Quarter
Quarter

7,831e
9,300e

•1st half
Three quarters
Year

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

Quarter
Quarter
Quarter
Quarter

Year
1

2
3
Note:

6,170
7, 037 ;

^

J

|

|

|

•

4,049e/
3,630e/

'

1968

—

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.
AT&T rights offering included in May estimate.




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

QUARTER
OR
MONTH ,

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

TOTAL
•r

1969 - I
II
III
IV
1970 - I e/

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

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

2,076
2,530
2,478
1,426
2,427
1,933
2,375
2,532
2,601
1,830
3,400
3,000
3,500

'

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

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

2,000
3,000

.

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

510
514
609
259
479
313
226
514
485 '
292
400
4bo
300

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

215
227 x
289
115
n. a.

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

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

1,355
1,126
750
809
929

.

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

GROSS PROCEEDS BY
' TYPE OF ISSUER
!
"7i
1 COMMl/NI - 1 OTHER
PUBLIC
UTILITY I CATIONS' 1 .ISSUERS1
i

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

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

•

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




'
1
1.
,346
L ,878
L ,544
1:
,967
,320
2;

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

473
432
684
598
511

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

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

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

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

1SSUKR

TYPE 2

AMOUNT
(MILLIONS
OF,
- DOLLARS)

Corporates
Scott Paper Co.
Central Hudson Gas & Elec. Co.
-Mapco Inc.
Western Mass. Elec. Co.
Western Mass. Elec. Co.
American Natural Gas Co.
Tampa Elec. Company
*General Public Utilities Corp
Kansas City Power & Light Co.
Tampa Electric Co.
Chase Manhattan Mortgage &
Realty Trust
Chase Man. Mtg. & Realty Trust,




V
Debs.
1st Mtg.
Debs
1st Mtg.
Pref. Stk.
Com. Stk.
Pref. Stk.
Com. Stk.
1st Mtg.
Pref. Stk.
Cony. Sub.
Debs.
Benf. Int.

MATURITY

•'COUPON .
RATI: OR
NK'i l.vri'k" I . T COST
'S

1Q7Q

MOODY'S
0F4-ERING : -..RAT INC, .
YIHLI)

'

100.0
25.0
23.0
30.0
15.0
38.2
15.0
24.6
35.0
15.0
40.0
60.0

/

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

6.75

6.75

N.R.

Aa
Aa
Ba
Aa

i

TABLE 6: Large Lontj term Public Security Issues for New Capital (contimn d;
(Other than U.S. Treasury)'

ISSUER

TYPE 2

1
COUPON
RATE OR
-MTKR- ' MOODY'S
MATURITY | NET INTERi.
:(
j RATING
1 EST COST
| VILLI)

AMOUNT
(MILLIONS
OF
DOLLARS)

State and Local

None

Other

None
*

*
1

.

*

•?

Rights offering.
Includes corporate and other security offerings of $15 million and over;
State and local security offerings of $10 million and over.
2
In case of State and local government securities, G.O. denotes'genera 1 obligation;
'<ev. -''t. , revenue obligations secured only by income from public ui i 1 i ti vs;
Rev.-Q.-lit., revenue bonds secured only by income from quasi-utilities; Rev.-S.T.,
revenue bonds secured by revenue from specific taxes only; Rev.-Kent., revenue
bonds secured solely by lease payments.
,
3
Includes foreign government and International Bank for Reconstruction and
, Development issues and non-quiranteed issues by Federal Agencies.




TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury) 1 As o f June 5, 1970
(continued)

ISSUER

TYPE

.

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OK .OFFERING
'

Corporates
Debs.
General • Telephone of Calif.
Bonds
West. IVnn Power
S.F. Debs.
P.P.C. Industries
Debs.
Lone Star Gas Co.
Raybi.-s.tos. - Manhattan, Inc.
Debs.
Consumer Power Co.
Com. Stk.
Debs.
*Pemiwalt Corp.
*M.ivh. Consolidated
1st Mtg.
Bonds
Appalachian Power Co.
New Jersey. Hell Telephone Co , Debs.
burl i ngton Northern
Bonds
*Dayton Hudson
Debs,
Notes
R.C.A. Corp.
S.F. Debs.
R.C.A.-Corp.
.*SVnith Carolina Elec. & Gas
Bonds.

70 .0
25 .0
125 .0
30 .0
25 .0
40 . 0 *
40 .0
30 .0
70 .0
100 .0
60 .0
25 .0
.0
75,
.0
75,
30,
.0

.0
Consumer Power Co.
60,
1st Mtg.
.0
*Pul1mari Transp. Leasing Co. Equip. Tr. Ctfs. 30,
.0
Bonds
15.
Washington Natural Gas Co.
25.
.0
Debs.
*American Esna Corp.
bos tori Edison.
.0
1st Mtg.
60.
Debs.
75. 0
General Foods Corp.
50..0
Notes
General Foods Corp.
.
20.0
Louisville Gas & Elec. Co.
1st Mtg.
1
100. 0
Commonwealth Edison Co.
Pref. Stk.
50.0
Carolina Power & Light Co.
Bonds
Baltimore Gas & Elec. Co.
Bonds
40--45.0
20. 0
,
Washington Gas Light Co.
1st Mtg.
Southern Bell Tel. Telegrapl i
Debs
150; 0
Co.
50. 0
1st Mtg.
Texas Eastern Trans. Corp.
30. 0
Conv. Debs
^Continental Inv. Corp.
S.F. Debs
35. 0
*Borg - Warner Corp.
Certf.25. 0
*Union Tank Car
Equip. Tr. i
60. o •
.Debs.
*Add r e s s ograp h -Mu 11 igrap h Coif
25. 0
Debs.
Ramada. Inns
Conv. debs.
50. 0
Avco Corp.
S.F., debs. ,
40. 0
ITT
Debs.
75. 0
^Beneficial Corp.
60. 0 ,
1st Mtg.
Florida Power.& Light Co.
78. 5
Bonds
American Airline




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

9
9
10
10
10
10
11
11
15
16
16
16
16
16
16

June
J une
June
June
June
June
June
June
June
June
June
June

17
17
17
22
22
22
22
23
24
24
25
29

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

30

'

12 A

TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury)1 As of June 5, 1970
(continued)

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

Corporates (Cont'd)

Monogram Industries
Gamble-Skogmo, Inc.
*Detroit Edison

Notes
Cap. Notes
Gen. & ref.
Mtg.
*Detroit Edison
Com. Stk.
Consolidated Natural Gas Go. Debs.
Brooklyn Union Gas Co.
1st Mtg.
Pacific Power & Light
1st Mtg.
Kansas-Nebraska Natural Gas
Debs.
Co.
Western Electric Co.
Debs.




25.
,0
20.
.0
75.
,0

June
June
July

58.
,0
40.
,0
30.
,0
25.
,0
15. 0

July 1
July 7
July 9
July 14
July 22

150. 0

Sept.29

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

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

.
•
I
! APPROXIMATE DATE
OF OFFERING

State and Local
Illinois Bldg. Auth.
Alabama, State of
Winchester, Mass.
*Atlanta Airport
Delaware State Highway Dept.
*New York State Transit
Jefferson Parish, La.
*Minn. -St. Paul, Minn. Metro Area
i
Utica Comm. Sch. Dist. Mich.
Houston, Texas Indp. Sch. Dist.
*0nondaga Co. N. J.
California, State of
Alaska, State of
Richmond, Virginia
Delaware River Port Auth. N.J.
Prince Georges County, Md.
*Austin, ISD, Texas
Mass. Bay Transp. Auth. System,
Mississippi Highway.
Genesee Co., Mich.
Los Angeles Calif. Parking Auth.
Maryland, State of
Tulsa, Oklahoma
Detroit, Mich.
San Francisco BARTS
*0akland Co., Mich.

Rev.
.
41.7
15.0
G.O.
12.0
G.O.
Rev.
41.0
Rev.
17.0
Transp. bonds 60.0
15.7
G.O.
42.0
G.O.
. 15.5
G.O.
. 10.0
G.O.
16.0
G.O.
1 0 0 . 0 ,
Bonds
12.9
G.O.
27.0
G.O.
75.0
Rev.
35.0
G.O.
G.O.
14.8
65.0
Rev.
20.0
Bonds
11.2
Rev.
25.0
Rev.
46.8
G.O.
23.5
G.O. / '
46.0
Rev.
50.0
Rev.
15.0
G.O.

June
June
June
June
June
June
June
June
June
June
June
June
June
June
June
June
June
June
June
June
t&une
July
July
July
July
July

8
9
9
10
jO
l
10
11
15
15
16
16
16
17
17
17
18
24
24
30

1
1
7
13
14

Other
550.0 *
June 10
Bonds
100.0
Bonds
June 16
Included in table for first time.
Includes corporate and other issues of $15 million and over; State and local
Government issues of $10 million and over.
Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues of Federal Agencies. •

Federal Home Loan Banks

T.V.A.

*
1
2

Postponements:
6/2 Penn Co

-

100.0




-

postponed indefinitely without explanation.

TABLE 8: Stock Prices and Volume
STOCK PRICES1
500°

D.J. - IND.

1968 - High
- Low

108.37(11/29) 985.21(12/3)
87.72(3/5)
825.13(3/21)

1969

• High
Low

106.16(5/14
89.20(7/17)

1970

High
Low

•

TRADING VOLUME 2

F

NYSE

AMEX

33.24(12/201) 82.1(6/7)
21.97(3/25) 34.0(2/23)

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

968.85(5/14)_32.91(1/3)
769.93(12/17) 25.02(7/29)

82.6(10/17)
32.8(4/4)

38.4(5/9)
12.9(4.4)

93.46(1/5)
69.29(5/26)

811.31(1/5)
631.16(5/26)

27.02(1/8)
19.36(5/27)

80.7(5/26)
44.6(3/20)

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

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

27.3

5

76.17

695.03

20.99

71.9

27.4

1970 - May.

June

1

Figures other than highs and lows are Fridays only,
for the year and are hot necessarily for Fridays.

2

1941-43 = 10.

3

18.6

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/
Day
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

D.J.
(Ind.)

Weekly

S&P
(500)

1280 128

STOCK PRICES
A M E X PRICE LEVEL INDEX

S&P's 500

1200 120

1120 112

1040 104

960

96

880 88
800 80
720
Millions of shares

60

AMEX TRADING VOLUME (TOTAL FOR WEEK)

40
;

|;|

.. , l |
.I ; l

.I!,!,

20

'itStP
NYSE TRADING VOLUME (TOTAL FOR WEEK)

1966

1967




72

TABLE 9: Security Credit

END OF PERIOD

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

CUSTOMERS 1
NET DEBIT
BALANCES

NET CREDIT
CUSTOMERS 1 NET EXTENDED BY
BROKERS AND
FREE CREDIT
DEALERS 3
BALANCES
4,967
5,390
5,129
4,732
4,442
4,460
4,490
4,498
4,642

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

1970 - Jan.
Feb.r/
Mar .x/
Apr. 2/
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

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

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

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

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

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

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

-290
-110
-50
-140

-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. 2/

1

. 2
3

——

-40

;

^

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

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 apd
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

5,082
4,208
2,551

1967
1968
1969
1969 - Feb.
Mar.
Apr.
1970 - Feb.
Mar.
Apr.

1969 - Nov.
. Dec.

MUTUAL SAVINGS BANKS
REGULAR DEPOSITS 3
NET
ANNUAL
NEW
GROWTH
NET .
MONEY2
FLOW
RATE 1

'.a,
4.0

331
642
-197

£/ /

246
510
-6 .

272
229

2,376
1,143
-747

SAVINGS & LOAN ASSOCIATIONS
SHARE CAPITAL
NET
N EW .
' ANNUAL
NET
MONEY2
GROWTH
1
FLOW
RATE

TOTAL '
DEPOSITS
1
|
NET • •
NEW
ANNUAL
NET
GROWTH
MONEY ?
RATE 1
FLOW

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

I
15,731
11,607
6,371

264
81
-325

-

4,9
4.1

605
1,370
-516

150
-88
-136

205
1;655
234

/--

•

9.4
6.3
3.4

/

8,505
3,882
-1,749

569
479
-543

936
2,012
-713

833
560
868\

177
' 554
253

451
2,165
228

327
466
117

-

Seasonally Adjusted
265
2.4
47
0.4

\

537
276

3.2
1.3

1970 - Jan.
-117
-2.1
-754
-6.7^
-871
-5.2
Feb.
298
;
5.4
247
2.2
545
3.3
'Mar.
—
1,021
—Apr. P./
- 6:4
1,000
1
Annual growth rate for monthly data, is the annualized monthly percentage increase in deposits.
..2 Net New Money is new deposits net of both withdrawals and interest. Data for S&Ls are for
insured associations only, which represent 967= 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.
'.SOURCES: National Association of Mutual Savings Banks and Federal Home Loan Bank Board.

Its




l:b

i;lli

1:1

—

^
,
SAVINGS FLOWS (seasonally adjusted)
Monthly

f dollars

•




2000
1600
TOTAL

1200
800
400
+
0
400
1200

SAVINGS & LOANS

800
400
+
0

400

800
MUTUAL SAVINGS BANKS

400
+
0
400

TA^LE 11:. Mortgage Commitments at Selected Thrift Institutions

DATE

,

TOTAL

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

10.3
10.5
10*4
10.2
9.9
9.5 »
9.2
8.9
8.6
8.4

1970 - Jan.
Feb.
Mar.

8.2
7.9
7.9

1

NET CHANGE
>
-,
OUTSTANDING COMMITMENTS
|
; ALL
. . MUTUAL
.ALL
\ MUTUAL
|
XSAVINGS
TOTAL
SAVINGS &
SAVINGS'
' •
SATFLMGS & '
1
LOAN
BANKS *
•
BANKS
LOAN
(N.Y. STATE.)
' (N.Y. STATE)
ASSOCIATIONS
ASSOCIATIONS
(Billions of Dollars, Sea.sonally Adjusted) 1/

7.0
7.2
7.1
7.0
6.8
6.5
6.4
6.1
5.9
5.8
1

5.6
5.4
5.2

.

3.3
3.3
3.2
3.2
3.1
3.0
2.8
2.7
2.7
2.6
2.6
2.5
2.5

„

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

.12
.14 f
-.06/
-ill/
-.22
-.24
-.18 .
-.23
-.18
-.12

-.17
-.31

-. 22
-.23
-.17

'

;

.06
;o2 .
-,,05
-.06
-.10
-.12
-.13
- -.09
-^06,
-.13

'

' : !

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 non- ,
residential 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.




.04
-.07
-.02

"

MORTGAGE COMMITMENTS OUTSTANDING (seasonally adjusted)
"Billions of dollars

Monthly

TOTAL

S&L'S *

N.Y.-MSB'S

Includes build,ng loans beginning August 1967

1960




1962

1964

1966

1968

1970

TABLE 12: Net Change in Mortgage Holdings

DATE'

TOTAL
"INCLUDING
FNMA-GNMA

1

FINANCIAL INSTITUTIONS
LIFE
SAVINGS &|
.LOAN
1 INSURANCE
ASSOC.
| COMPANIES

MUTUAL
. j
TOTAL |xCOMMERCIAL - ,SAVINGS
BANKS - BANKS
u

: r:XA-c::HA

Not Seasonally Adjusted
18,197
19,988
23,827
23,485

1966
1967
1968.
1969
1969
Feb.
Mart
1970 - Jan 1
Feb.
Mar.

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

1,701
1,750
1,964

1,500
. 1,529
1,759

451
480
519

.

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

1,091
.• ' 487
#16'
1,149
•
n.a,.
n. a.

•

2,760
3,118
2,796
\2,495
293 •
- 228
198
38
' 106
153,

100
100
0

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

3,761
7,520
9,350
'9,407
622
671
' 917
136
223

.

'

134
150
125

: •
1 .

213
187

'

n.a;.

. 317

2,323
1 1,797
i 2,508
» 4,375
201
221
•

2 0 5

604
533
529

Seasonally Adjusted

^

1969 - Feb.
: MKr.
Apr.
t May '
June'
« July
Aug.
Sept.
Oct.
Nov.
• Dec.

2,025
2,202
1,906
2,099
1,91b/
2,1-17
1,808
2,032
1,875
2,153'
1,364
1,698
1,380
1,910 .
.1,365
1,876
1,166
1,734
1,069
1,652
1,906
1,292

1970,- - Jan.
Feb.
• Mar.

1,493
1,604

937
1,105
• n.a.

668
632
567
534
440
151
310
383
244
237
.347
288
• 285
114

-

884
266
875
230
899
240
251
854
1,022
230
859
181
:
720
157
654
137
627
124
i.46 .
547
576
235
24
143
.197

• 400
436. .
276

„

207
159
194
169
183
173
193
191
171
139
134
- 225
241

177
193
207
224
' 278 '
334
530
511
568
583
614
556
499
.516

Monthly data for commercial banks based on Federal Reserve estimates benchmarked
to* Call" Report data on rfeal estate loans outstanding as-1 available. Other data
derived from mortgage debt outstanding as reported separately by Rational 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.




23

NET CHANGE IN

MORTGAGE HOLDINGS (seasonally adjusted)

Billions of dollars

T i n

Monthly

n

3.0

2.5
TOTAL, INCt.. FNMA - GNMA

2.0

1.5

FINANCIAL INSTITUTIONS

1.0

1967




1968

1969

1970

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

TOTAL

MULTI-AND
COMMERCIAL

FARM"

15.2

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

15.6
20.5
27.0
27.5

10.0
13.8
19.6
19.9

6.8
10.5
15.7
16.0

3.2
3.4
3.9
3.9

3.8
4.9
4.9
4.9

7.2
8.2
8.7
8.8

1.8
1.8
2.5
2.7

ip/ 27. 1
IIP 25.9
IIIl > 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

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

- I£/
II
III
IV j

28.5
24.3
18.7

1967

. - ip/ i
1
IIP
IIIl >
IVp

1969

1- to 4-| MULTIFAMILY j FAMILY. COMMERCIAL

19.2
15.6
11.0
9.2

1966

1968

RESIDENTIAL 3

- i£/
iip

30.4
28.5
n i l > 26.4
IVp 24.0

Derived from data on mortgage debt outstanding from Federal Deposit Insurance
Corporation, Federal Home Loan Bank Board, Institute of Life Insurance,
National Association of Mutual Savings Banks, Departments of Commerce and
Agriculture, Federal National Mortgage Association, Federal Housing .
Administration, Veterans Administration and Comptroller of the Currency.
Separation of non-farm mortgage debt by type of property, where not available*
and interpolations and extrapolations, where required, estimated by Federal
Home Loan Bank Board and the Federal Reserve.
Residential mortgage debt includes nonfarm only and is sum of 1-to 4-family
and multifamily mortgage debt combined.




NET INCREASES IN MORTGAGE DEBT OUTSTANDING
Quarterly

Billions of'dollars, seasonally adjusted annual rate

32
TOTAL

24

TOTAL
RESIDENTIAL

1-4 FAMILY

COMMERCIAL

MULTIFAMILY

1966




1970

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

1

WEEK
ENDED

COMMITMENTS IN $ MILLIONS
'
IMPLICIT, YIELD 2 (per cent)
ACCEPTED
1 -YEARll
1-YEAR 1
90TOTAL
TOTAL
9066& OVER
OFFERED
M0NTH & OVER
DAY
DAY
M0NTH

1970 - Mar.

9
23

354.6
395.4

276.4
239.0

60.7
47.5

136.5
124.5

79.2
67.0

9.16
9.12

9.19 '
9.14

Apr.

6
20

268.4
315.7

190.2
185.2

41.0
54.0

121.4
98.2

27.8
33.1

9.05
9.02

9.07
9.04

. 9.10
9.10

May

5
11
18
25

443.3
269.2
300.3
289.5

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

1
8

224.2

113.8 .' 31.1
(300.Ofi

71.4

11.3

9.20

9.24

9.27

June

9.13
" 9.12

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 t:o
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

6 MONTHS

100

1 YEAH
AND OVER
3 MONTHS

IMPLICIT YIELD
6 - M O N T H COMMITMENTS
•

•

—

:
i

r

i

i

1

I

l

l

i

i

i

i

i

I

TOTAL BIDS RECEIVED

|

|
JUNE

[TOTAL BIDS ACCEPTED!
AUG.

OCT.

1969




DEC.

4-•'
FEB.

APR.

JUNE

1970

AUG.

OCT.

,

DEC.

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

DATE

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

9 - Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
0 - Jan.
Feb.
Mar.
Apr.

-

797
877
826
803
752
828
766
762
776

708
656
681
626
624
653
624
518
626

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

577
725
702
693

482
581
682
488

1

TOTAL

•

UNADJUSTED
TYP E OF FINANCING
FHA VA
OTHER

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2

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

131.6
4.4
130.1
4.3
121.2
4.6
4.7 . 99.7
4.2
98.3
106.2
4.8
93.3
5.0
3.9
74.7
4.2
57.9

1,502
1,323
1,340
1,228
1,245
1,201
1,183
1,191
1,239

66.4
74.3
113.9
123.8

16.5
17.5
25.2
32.4

3.4
3.9
4.8
5.4

46.5
52.9
83.9
86.0

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.




PRIVATE HOUSING STARTS AND PERMITS
Monthly, annual rates

Millions of units

SEASONALLY ADJUSTED
2.0

HOUSING STARTS

1.6

1.2
BUILDING PERMITS

(in issuing areas)

PER CENT OF UNADJUSTED TOTAL STARTS

MULTI-FAMILY
40

GOVERNMENT UNDERWRITTEN
1964




1966

1968

1970

TABLE 16: Mortgage and Bond Yields
FHA
MORTGAGES

2

- - DATE
25 -YEAR 30-YEAR

1959-60 - High
19*61-66 - Low
1966 - High
1967 - High
Low
1968 - High
Low
1969 - High
Low

6 .26
5,
.43
6.
.73
..
a- . a.
, a.
, a.
. a.
n. a.

1969 - Dec.

n. a.

CONVENTIONAL
MORTGAGES
3

1

. NEW
SPREAD BETWEEN YIELDS Aaa CORON CONV. & . PORATE
BONDS
FHA M0RT. GAGES

SPREAD BETWEEN
YIELDS ON NEW
"CORPORATE BONDS
AND
FHA MORTGAGES

n. a.
5.44
.6.81
6.81
6.29
7.52
6.78
8.62
7.99

6.30
5.80
6.70
6.70
6.40
7.40
=6.75
8.35
7.55

.23
.25
.30
.11
-.12
.12
-.27
.40
.13

5.25
4.41
5.82

1.69
.77
1.16

6.51
5.18
6.79
6.15
8.75
6.91

1.28
.27
1.20
.26
1.08
-.13

8.62

8,35

-.27

8.75

-.13

8.46
8.55
.
n. a.
1970 - Jan.
.99
8.30
9.29
8.55
-. 74
Feb.
n. a.
.60
8.60
-.65
8.55
9.20
n. a.
Mar.
'
.50
8.60
-.55
9.10
8.55
n. a.
„
Apr.
1
Neither mortgage nor bond yields include 1 allowance for servicing costs which arc
much higher for mortgages than for bond's. 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-fieId-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.
'
„
3
Based on FHA-field-office opinion on typical interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring officecities. Beginning with April 1960, rate relates only to new-home mortgages;
prior to that date, rate related to both new as well as existing-home mortgages.. Dashed line indicates this change in the series.
4
See note for Table 1.




MORTGAGE AND BOND YIELDS
Monthly

Per cent

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
(YEARS)
(PER
TIVE
RATE
CENT) RATE
(PER
CENT) . 2
3
1969
Apr.
May .
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

0.96
0.88

7.62
7.65
7.76
7.91

7.47
7.50
7.62
7.76
7.86
7.89
7.99
7.97
8.07

0.86

8.00

0.92
0.89
0.96
1.06

8.05 '
8.13
8.13
8.25

8.16
Jan.
8.23
Feb.
Mar. r/ 8.29
8.23
Apr.

1.08
1.09
1.11
1.02

8.34
8.41
8.47
8.40

0.84 0.92

25.4
25.8
25.6
25.5
25.2
25.3
25.3
25.3
25.45

EXISTING HOMES.
LOAN/
CON- FEES &
LOAN/
TRACT CHARGES EFFEC- MATU- PRICE
PRICE LOAN
(PER
RITY RATIO
RATIO ' AMT. RATE
TIVE
CENT) RATE (YEARS) (PER
(PER ($000) (PER
CENT)
CENT)
CENT)
2
3
4
7.46
0.85
0.83
7.54
7.64 . 0.86
0.91
7.79
0.93
7.90
7.98
0.91
8.00 0.90

72.6
73.2
73.0
72.0
72.3
72.9
72.8
72.8
71.9

24.8
25.0
24.9
24.5
24.3
25.0
24.6
24.6
25.0

8.08

69.3
71.8
71.1
71.1

25.1
24.9
25.1
24.5

8.13
8.23
8.26
8.20

8.00

0.93

7.60
7.68
7.79
7.94
8.05
8.13
8.15
8.15
8.24

0.94
1.02
0*98
0.90

8.29
8.41
8.43
8.35

0.90

23.0
22.7
22.8
22.8
22.6
22.2

LOAN
AMT.
($000)

22.6
22.9

71.8
71.9
71.4
71.7
71.2
70.7
70.4
70.4
70.6

20.1
20.8

22.4
22.4
22.6
22.8

70.3
70.2
70.4r
70.4

20.5
20.4
20.6
20.4-

22.6

19.9
19.7

20.1
20.1
19.8
19.2
19.5

1970
25.0
25.2
25.0
" 24.8

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 charac- ,
teristies of conventional first mortgages originated by major institutional lender
groups"(including mortgage companies) for purchase of single family homes. Data ex- .
elude loans for refinancing, reconditioning or modernization; construction loans to
home^builders; and permanent loans which are coupled with construction loans to ownerbuilders. Related series oh 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.
.
,

^

4 • Derived by FRB.




CONVENTIONAL MORTGAGE TERMS
Monthly

MATURITY
NEW
25

EXISTING

20

15
80

LOAN/PRICE RATIO

NEW
t A
/ X / ~ ~ X ^ v /

-•

75

n

EXISTING

\

k
70

1

1

i.

i

1 i i i M i i I I i i 1 i i II,i i i i 65 i
i i
Thousands of doll

LOAN AMOUNT
30

EXISTING

10

J
1964




1966

I
.
1968

i i i i i i i i i i i i i i i i i
i
i
1970
* CHANGE IN SERIES

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