Full text of H.16 Capital Market Developments : March 1, 1971

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esrsra

DECONTROLLED AFTER SIX MONTHS

L.5.8 C o n f i d e n t i a l . R . )

March 1, 1971

CAPITAL
iARKET
ELOPMENTS

Capital Markets Section, Divisionof Research and Statistics,
^ - j^Boord 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

YIELDS
MOODY'S
SEASONED
NEW ISSUE 1
Aaa

WEEK ENDING:

1971 - Feb.

Mar.

5
12
15
26

6.91
6.97
7.11
7.59

7.10
7.06
7.07
7.10

5

WEEK ENDING:

1971 - Feb. 5
12
19
26

CORPORATE BOND MARKET
VOLUME2
GROSS
OFFERINGS
384
637
522
627
l,050e

YIELDS
MOODY'S
BOND BUYER
SEASONED SEASONED 20
Aaa
BOND INDEX
5.10
4.75
4.85
5.00

Mar. 5

5.27
5.05
5.27
5.34

PER c o r r

SOLD BY END
OF WEEK

BONDS SCHEDULED
WITHIN 28 DAYS

64
94
76
89

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

n.a.

n.a.

MUNICIPAL BOND MARKET
VOLUME2
PER CENT

GROSS
SOLD BY END
OF WEEK
OFFERINGS
343
462
602
373

72
69
63
82

375e

n.a.

BONDS SCHEDULED
WITHIN 28 DAYS
.
•. 870
1,037
1,070
n.a.
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.)
Z
2 Millions of dollars unless otherwise indicated.
Note: See footnotes to Table 3




1

TABLE 2: Details on Inventories

DATE
OFFERED

1
1

2/25
2/25
2/25
2/23
2/23
2/18
2/17
2/16
2/10

AMOUNT
(MIL. $)

T
1

20.0
45.0
35.0
150.0
50.0
35.0
50.0
90.0
30.0

DATE
OFFERED | RELEXSED
2/17

CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK
ORIGINAL
RATING AND /
ISSUER
COUPON YIELD CALL PROTECTION
Central Telephone
Gen'l Tel. Fla.
Hart Schaffner & Marx
U. S. Steel
M. Lowenstein
Jersey Cent. P & L
Dana Corp.
Wisconsin Tel.
Indiana Mich.

AMOUNT

2/23

50.0

ISSUER

INVENTORIES

1971 - Jan.
Feb.

COUPON

Houston Lighting

MUNICIPALS
BLUE LIST
IN SYNDICATE
|

DATE

8.10
8.,00
8..50
7,,75
8,.50
8,.13
7,.30
7.25
6.50

7.25

8.10
7.87
8.55
7.75
8.50
8.00
7.30
7.15
6.35

A
A
Baa
A
A
A
A
Aaa
A

ESTIMATED PROPORTION SOLD

5 yrs.
5 yrs.
10 yrs.
10 yrs.
5 yrs.
5 yrs.
10 yrs.
5 yrs.
5 yrs.

70%
25%
70%
95%
75%
75%
80%
25%
80%

ORIGINAL INCREASE RATING AND ESTIMATED PROYIELD IN YIELD CALL PROT. PORTION RELEASED
7.15

+28

Aaa 5 yrs5.

/ 50%

1

CORPORATES
IN SYNDICATE

29

856

350

162

5
12
19
26

858
764
882
876

227
221
394
217

308
44
133
161

N.C. - No call protection.
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.


which is daily average


TABLE 3: High Grade Bond Yields

DATE

NEW
CORPORATE
Aaa1

MOODY'S SEASONED
CORPORATE
Aaa 2

U.S. GOVERNMENT
20-YEAR
CONSTANT
MATURITIES 3

BOND
BUYER'S
SEASONED
MUNICIPALS 4

1968 - High
Low

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

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

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

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

1969 - High
Low

8.85 (12/5)
6.90 (2/21)

7.84 (2/26)
6.55 (1/12)

6.97 (12/26)
5.96 (1/24)

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

1970 -High
Low

9.30 (6/19)
7.68 (12/18)

8.60 (7/3)
7.48(12/31)

7.55 (5/29)
6.17 (12/18)

7.12 (5/29)
5.33 (12/11)

1971 - Jan. 22
29
Feb.

6.98
6.76

7.36
7.19
7.10
7.06

6.09
6.05

5.13
5.16

&
11

6.91
6.97
?:»•

m

6.10
5.27
6.08
5.05
6.14
6.22
, adjusted (as described in

i:$l

.
r---.
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; lowsxdre for individual series and may be on different dates
for different series.




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

GROSS PROCEEDS
STATE AND LOCAL2

CORPORATE1

PERIOD
1971

1970

1969

1971

1970

1969

2,750e

2,636
1,802
3,539

2,075
2,045
2,098

| 2,600e

1,340
1,224
1,555

1,262
987
538

April
May
June

3,170
3,909
3,389

2,748
2,076
2,530

1,647
1,004
1,081

1,801
1,110
737

July
August
September

2,768
2,274
3,518

2,478
1,427
2,427

I
i!

1,356
1,358
1,758

1,097
808
559

October
November
December

3,777
4,182
3,980

1,933
2,375
2,532

1,924
1,748
2,190

1,280
886
816

7,977
10,468
8,560
11,939

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

4,119
3,732
4,472
5,862

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

18,445
27,005
38,944

13,572
19,904
26,744

7,851
12,323
18,185

6,435
8,899
11,881

January
February
March

1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

1st half
Three quarters
Year

|

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

Quarter
Quarter
Quarter
Quarter

6,170
7,037

Year
1
2
3

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.




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

QUARTER
OR
MONTH

TOTAL

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

GROSS PROCEEDS BY
TYPE OF ISSUER
PUBLIC
UTILITY

COMMUNICATIONS

OTHER
ISSUERS

7,977
10,468
8,560
11,937

4,577
6,994
5,987
7,827

1,262
1,282
914
1,421

2,138
2,190
1.659
2,690

222
135
83
226

922
710
287
737

2,584
2,445
2,314
3,169

2,085
2,812
2,714
3,406

766
2,162
868
1,346

2,543
3,048
2,663
4,020

2,636
1,802
3,539
3,170
3,909
3,389
2,768
2,274
3,518
3,777
4,181
3,979

1,595
1,068
1,914
2,022
3,041
1,931
1,831
1,731
2,425
2,390
3,001
2,436

525
266
471
447
399
436
320
205
389
304
283
834

516
468
1,154
701
468
1,021
617
338
704
1,083
898
709

61
33
128
89
20
26
68
11
4
56
11
159

387
249
286
398
230
82
107
59
121
388
184
165

811
639
357
540
1,416
906
689 1,109
817
600
939 1,103
638
843
682
630
^ 994 1,241
1,006 . 1,101
1,107 1,350
1,056
955

234
226
306
62
1,747
353
144
279
445
371
693
282

952
680
911
1,310
744
994
1,143
682
838
1,300
1,033
1,687

L - Jan. e/ 2,750

2,000

300

450

380

1,400

- I
II
III
IV e/
1970i -

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

n.a.

80

505

1 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 .




465

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

ISSUER

l

TYPE '

COUPON
RATE OR

AMOUNT
' (MILLIONS

OF

February 1 thru February 26,1971
MOODY'6
RATtN<?

EST COST

OFFERING
YIELD

2001
2001
1996
\2001
2001
2001
2001
2001 \

71.13
7\25
5.50
7.88
7.38
7.25
7.00
7.00

6.95
7.17
5.50
7.90
7.25
7.15
6.95
7.06

Aaa
Aa
Ba
Baa
A
Aa
Aa ,
Aaa

1978
1996
2001
1977
2001
1996
1996
2001
2007
2001

6.50
7.20
7.35
6.88
8.13
8.00
7.30
7.88
7.25
7.25

6.35
7.20
7.35
7.08
8.00
8.05
7.30
7.29
7.15
7.15

A
A

1972-86
1996
2001

7.88
8.50
8.00

5.50-6.80 A
Baa
8.55
A
8.10

MATURITY

DOLLARS)

WET ayVKR-

Corporates
30.0
1st. Mtg.
Texas Pwr. & Lt. Co.
1st. Mtg. bds 40.0
Pub. Serv. Co. of Colo.
Debs.
100.0
Unlroyal Inc.
40.0
1st. Mtg.
Pacific Pwr. & Lt. Co.
65.0
1st. Mtg.
Niagara Mohawk Pwr. Co.
60.0
Debs.
Penna. Pwr. & Lt. Co.
1st. Mtg.
36.0
Central Pwr. & Light Co.
500.0
Debs
American Tel. & Tel. Co.
Cum pref stk 30.0
Indiana & Mich. Elec. Co.
1st
Mtg.
30.0
Indiana & Mich. Elec. Co.
Debs.
30.0
Reliance Elec. Co.
Cap notes
30.0
Union Bank
100.0
Notes
Commercial Credit Co.
35.0
1st Mtg.
Jersey Cent. Pwr. & Lt. Co.
U. S. Plywood-Champion Paper IncS.F. debs. 100.0
50.0
Debs.
Dana Corp.
49.5
1st. Mtg.
Georgia Pwr. Co.
90.0
Debs.
Wisconsin Tel. Co.
49.5
1st. Mtg.
Houston Lt. & Pwr. Co.
25.0
Jersey Central Pwr. & Lt. Co. Pref. Stk.
Equip Trst. 18.0
Trailer Train Co.
C s
Debs. « - 35.0
Hart Schaffner & Marx
35.0
South Carolina Elec. & Gas Co. Bds.
1st. & Ref.
Pacific Gas & Elec. Co.
150.0
Mtg.
15.8
Com. Stk.
Howard Johnson Co.
50.0
Debs.
Texas Eastern Trans. Corp.
50.0
M. Lowenstein & Co.
20.0
Central Tel. & Utilities Corp. lst!'Htg.
50.0
1st. Mtg.
Northern States Pwr. Co.
45.0
1st.
Mtg.
Gen'l Tel. Co. Fla.
30.0
McCulloh Properties Credit Coi
DigitizedU.
forS.
FRASER
150.0
Debs.
Steel Corp.



—

A
Baa
A
Aa
Aaa
Aaa
--

2003

8 8.00

7.87

Aa

1991
1996
1996
2001
2001
1976
2001

8.90
8.50
8.10
8.00
8.00
9.50
7.75

8.90
8.50
8.10
7.87
7.87
9.50
7.75

Ba
Baa
A
A
A
Aa

T A B L E 6:

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

ISSUER

TYPE 2

AMOUNT
(MILLIONS
OF
DOLLARS)

February 1 thru February26,.1971

1

MATURITY

COUPON
|
RATE OR
1
NET INTER- I
EST COST
j

OFFERINC

MOODY'S
RATING

YIELD

State and Local (continued)
California
Prince William Co, Va.
Los Angeles DWAP
Anne Arundel Co., Md.
Yonkers ,N. Y.
Hartford, Conn,
Alaska
Peabody, Mass.
San Antonio, Tex.
Monroe Co., N. Y.
Vermont, State of
Dallas-Ft. Worth Airport, Tex.
New York, State of
Detroit, Mich.
Tennessee
Calif. State Colleges
Los Angeles Co. Fid. Ctr. Dls
California
Centennial Jt. Sch. Bd. Auth.

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

100.0
15.0
18.0
18.0
16.3
14.4
21.3
11.0
10.0
16.2
25.0
75.0
96.0
20.0
66.0
13.1

1980-20
1972-1990
1977-96
1972-2001
1971-88
1972-2009
1972-1992
1990-91
1975-90
1971-2000
1972-90
1979-2000
1972-2001
1971-2002
1972-91
1973-2010

5.52
4.69
5.47
4.93

Bds.
Rev.

24.0
12.9

1972-01
1973-1999

Hawaii, State of
Pittsburgh Stadium Auth., Pa.
Virginia Public Sch. Auth.
Puerto Rico's
Louisiana, State of
Port of N. Y. Auth.
Minnesota
Prince Georges Co., Md.
Univ. of Louisville K. Y.
St. Louis, Mo.

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

55.0
35.0
25.0
36.8
50.0
100.0
51.8
26.2
14.2
10.0




1974-1991
1972-2011
1972-1991
1973-96
1972-92
2006
1973-1991
1972-1996
1975-2003
1972-1991

4.29
5.76
4.26
6.00

3.90-5,70
2.75-5.00
3.60-5.30
2.80-5.50
2.70-5.00
2.60-5.30
3.00-5.80
2.80-5.20
3.10-4.90
2.20-5.00
2.25-4.65
5.00-6.79
2.25-4.75
2.80-6.00
2.40-4.90
3.00-6.00

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

4.69
6.13

2.25-5.20
3.50-5.90

Aa
Baa

--

4.77
5.07
4.65
--—

4.63
6.48
4.53
6.32
4.79
6.08
4.40
4.74
5.71
4.56

3.00-5.40
3.00-6.00
2.40-5.60
2.75-5.75
2.40-5.50
5.97
" 2.50-5.00
2.60-5.25
3.30-6.20
2.25-5.00

A
Baa
Aa
A-l
A-l
Aa
A
A
Aa

o

T A B L E 6: Large Long-term Public Security Issues for New Capital (continued)
(Other than U.S. Treasury) 1

ISSUER

TYPE

State and Local
Ohio, State of
G.O.
New York St. Hsg. Finance Agcy. Rev.
Texas, State of
G.O.
L. A. Harbor Dbpt. Calif.
G.O.

OF
DOLLARS)

COUPON
RATE OR
MATURITY NET INTEREST COST

75.0
103.8
25.0
16.0

1972-91
1971-2002
1972-87
1972-1992

AMOUNT
(MILLIONS

\
2

4.43
5.90

February 1 thru February 26, 1971
OFFERINC
YIELD

MOODY'S
RATING

2.38-5.20
2.40-6.20
2.30-4.70
2.75-5.70

Aaa
Aa
Aaa

lights offering.
I n c l u d e s c o r p o r a t e and other security o f f e r i n g s of $15 m i l l i o n and over;
State and local security offerings of $10 m i l l i o n and over.
In case of State and local government s e c u r i t i e s , G.O. d e n o t e s gem-ral o b l i g a t i o n ;
•Xev.-Ut., revenue o b l i g a t i o n s secured o n l y b y income from public u t i l i t i e s ;
R e v . - Q . - U t . , revenue bonds secured only by income from q u a s i - u t i l i t i u s ; R e v . - S . T . ,
revenue b o n d s secured by r e v e n u e from specific taxes only; R e v . - R e n t . , revenue
b o n d s secured solely by lease payments.
I n c l u d e s foreign government and I n t e r n a t i o n a l B a n k for R e c o n s t r u c t i o n and
Development issues and n o n - q u a r a n t e e d issues by Federal A g e n c i e s .




/

It
11

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)

Comorates
Abbott Laboratories
Debs.
60.0
Pet Inc.
Debs.
35.0
Bankers Trust Co.
Notes
75.0
Walgreen Co.
Debs.
30.0
Harsco Corp.
S. F. debs.
30.0
Avco Financial Service Inc. Debs.
50.0
Maine Yankee Atomic Pwr. Co Bds.
50.0
Bds.
Falcon Tankers Inc.
14.0
Phillips Petroleum
Debs.
200.0
*Fruehauf Finance Co.
Notes
25.0
Debs.
25.0
*FruehaufFinance Co.
Debs.
Gen'l Elec. Co.
200.0
50.0
North Am. Rockwell Corp. S. F. debs.
North Am. Rockwell Corp.
Bds.
50.0
Chemical &. Y. Corp.
Con. debs.
50.0
Columbia Gas System Inc.
Debs.
75.0
Duquense Lt. Co.
35.0
1st. Mtg.
200.0
Pacific Tel. & Tel. Co.
Debs.
Seaboard Coast Line R.R.
50.0
1st. Mtg.
Philadelphia Elec. Co.
Cum. Pref. Stk. 50.0
Ralston Purina Co.
Debs.
50.0
Rochester Tel. Co.
Bds.
30.0
Pacific & Foundry Co.
Debs.
15.0
60.0
Burlington Northern, Inc. 1st. Mtg.
35.0
Utah Pwr. & Lt. Co.
Bds.
Natural Gas Pipeline Co. of
40.0
America
Bds.
Natural Gas Pipeline Co. of
America
Debs.
40.0
90.0
Virginia Elec. & Pwr. Co. Bds.
30.0
Bds.
Arkansas Pwr. & Lt. Co.
40.0
1st. Mtg.
L. I. Lighting Co.
Orange & Rockland Utilities
25.0
Bds.
Inc.
)ebs.
30.0
*Texas Gas Trans. Corp.
)ebs.
. 35.0
U. ?. Financial
)ebs.
125.0
*New Jersey Bell Tel. Co.
40.0
General Tel. Co. of the S.W. ids.
Lst. Mtg.
18.0
Florida Gas Trans. Co.
)ebs.
35.0
Puerto Rico Tel. Co.
• 32.0
American Airlines Inc.
CJtfs.
20.0
Central Tel. & Utility Corp.1Lst. Mtg.
50.0
Southern Natural Gas Co.
:tebs.
Levi ting Furniture Corp.
First Chicago Corp.
Dayton Pwr. & Lt. Co.

I!
Com Stk.
Debs.
Pref. Stk.




32.1
150.0
20.0

As of February 26, 1971
APPROXIMATE DATE
OF OFFERING
%

Mar. 1
Mar. 1
Mar. 1
Mar. 1
Mar. 1
Mar. 2
Mar. 2
Mar. 2
Mar. 2
Mar. 3
Mar. 3
Mar. 3
Mar. 3
Mar. 3
Mar. 3
Mar. 4
Mar. 8
^ ^
Mar. 9
Apnjuafvr
Mar. 9 flTin Xapnausv
Mar. 10 11
Mar. 11 16
Mar. 11
Mar. 11
Mar. 11
Mar. 16
Mar. 17
Mar.
Mar.
Mar.
Mar.

17
17
18
23

Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.

24
24
25
30
31

Mar.
Mar.
Mar.

.

12
TABLE

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

°

ISSUER

TYPE

.AMOUNT
(MILLIONS
OF
DOLLARS)

Corporates (continued)
Dayton Pwr. & Lt. Co.
1st. Mtg.
American Metal Climax Inc. Notes
Am rican Metal Climax Inc. S.F. debs.
La. Pwr. & Lt.
1st. Mtg.
Evans Products Co.
Debs.
Ga. -Pacific Corp.
Conv. deb's.
Ford Motor Credit
Debs.
Hoover Ball & Bearing Co.
S.F. debs.
Gen'l Tel. Co. of Ohio
1st. Mtg.
-F. W. Woolworth Co.
Debs.
Dayco Corp.
Debs.
Alabama Gas Co.
1st. Mtg.
Monumental Corp.
Notes
Occidental Petroleum Corp. Conv. debs.
Beneficial Corp.
Bds.
Beneficial Corp.
Bds.
Microdot Inc.
Notes.
Indiana Bell Tel. Co.
Debs.
Standard Oil Co. (Calif.) S. F. debs.
Morgan Guaranty
Cap. notes
Kentucky Utilities Co.
Equity Sec.
Re&tuclgJJjrfrlities Co.
1st. Mtg.
jQtfo Pwr. Co.
1st. Mtg.
Standard Oil Co. of Calif. S. F. debs.
New England Tel. & Tel. Co. Debs.




45.0
50.0
50.0
25.0
50.0
125.0
200.0
25.0
20.0
125.0
20.0
16.0
20.0
100.0
25.0
50.0
20.0
100.0
250.0
150.0
15.0
35.0
40.0
250.0
200.0

as of February 26, 1971
APPROXIMATE DATE
OF OFFERING

Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Apr.
Apr.
Apr.
Apr.
* Apr.
Apr. 1
Apr.
Mary 25

13
TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury)i

ISSUER

TYPE

State and Local
G • 0.
Hempstead N. Y.
Rev.
Atlanta, Ga.
G. 0.
Roanoke, Va.
G.O.
New York St. Dorm. Auth.
G. 0.
Maryland, State of
Milwaukee, Wise.
G.O.
Broward Co. S/D
G.O.
Dallas, City of
G.O.
Birmingham Wtr. Works Bd., Ala. Rev.
G.O.
Suffolk Co., N. Y.
Wash. St. Bd. Comm. College Ed. Bds.
G.O.
San Antonio, Tex.
G.O.
Buffalo, N. Y.
G.O.
•South Carolina, State of
Notes
Calif., State of
G.O.
California
\
Cincinnati, Ohio
G.O.
Rev.
Henderson, Ky.
fNew Jersey, State of
G.O.
Cleveland City Sch. Dist.
G.O.
Oakland Co., Mich.
G.O. ^
St. Louis Co., Mo.
G.O.
Baltimore, Md.
G.O.
G.O.
tClarkstown, N. Y.
Rev.
East Allen SBJC Ind.
Rev.
*Dade Co. Port Auth., Fla.
G.O.
Newark, N. J.
Santa Clara Co., Calif Bldg. Rev.
G.O.
Clark Co., Nev. S/D
G.O.
Greensboro, N. C.
G-O.
West Virginia, State of
G.O.
Texas Wtr. Development Bd.
San Bernardino, Calif. Redevp.
Bds.
Agency
*
1
2

1

AMOUNT
(MILLIONS
OF
DOLLARS)
17.9
23.5
10.1
29.5
56.3
12.8
18.6
27.0
. 11.0
16.6
21.0
13.0
22.1
38.7
100.0
10.0
16.1
76.0
75.0
16.0
133.3
17.4
35.2
12.7
11.0
10.8
18.8
17.0
13.0
11.0
45,0
25.0
13.5

APPROXIMATE DATE
OF OFFERING

Mar: 2
Mar. 2
Mar. 2
Mar. 2
Mar. 2
Mar. 2
Mar. 3
Mar. 3
Mar. 3
Mar. 4
Mar. 4
Mar. 4
Mar. 9
Mar. 9
Mar. 10
Mar. 10 ^
Mar. 10
Mar. 10
Mar. 10
Mar. 11
Mar. 11
Mar. 11
Mar. 16
Mar. 16
Mar. 16
Mar. 16
Mar. 16
Mar. 21
Mar. 25
Mar. 31
30
Mar.
Mar.

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.




Tables

14

STOCK PRICES AND VOLUME
STOCK PRICES1*

TRADMG VOLUME 2 '

DATE
NYSE INDEX 3 *

1968 - High
Low

1969 - High .
Low

1970 - High
Lew

DJ.MDUSTRIALS

AMEX 4 -

NYSE

AMEX

9.3(1/19)
2.9(3/29)

61.27(11/2)
48.66(3/5)

985.21(12/13) 33.24(12/20) 17.1(7/12)
8.3(3/29)
825.13(3/21) 21.97(3/25)

50.32(5/14)
49.31(7/29)

968.85(5/14) 32.91(1/3)
769.93(12/17) 25.02(7/29)

16.5(3/29)
8.6(8/29)

8.0(1/31)
3.6(11/21)

52.36(1/5)
37.69(5/26)

842.00(12/29) 27.02(1/8)
631.16(5/26) 19.36(5/27)

18.5(12/4)
7.8(8/14)

7.1(1/2)
1.8(8/14)

1971 - Jan.

29 52.64

868.50

24.32

20.2

5.3

Feb.

53.36
54.16
53.20
53.19

876.57
888.83
878.56
878.83

24.87
25.37
25.03
25.13

21.1
22.1
18.6
16.1

6.9
6.7

5
12
19
26

1.

Figures other then highs and lows are Fridays only.
Highs-end lows are for the year and are not necessarily for Fridays.

2.

NYSE ie the Hew York Stock Exchange; AMEX is the American Stock Exchange.
Volume figures are daily averaged for the entire week, (millions of shares).
Trading is normally conducted for 5-1/2 hours per day and 5 days per week, or
In recent years, however abbreviated trading to the extent, and over the time
Hours/
Days/
From
Through;
Day
Week
January 3, 1969
July 7, 1969
January 2, 1970

July 3, 1969
December 31, 1969
May 1, 1970

3.

12/31/65 - 50

4.

Average dollar value of shares listed.




4
4-1/2
5

5
5
5

27-1/2 hours per week.
periods, shown below:
Hours/
Week
20
22-1/2
25

15

TABLE 9: Security Credit

END OF PERIOD
Outstanding;

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

CUSTOMERS 1
NET DEBIT
BALANCES

NET CREDIT
CUSTOMERS' NET EXTENDED BY
FREE CREDIT BROKERS AND
DEALERS3
BALANCES

1969 - Dec.

4,970

2,580

7,550

7,445

2,803

4,642

1970 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Change in
Outstanding;

4,680
4,570
4,520
4,360
4,160
4,150
3,800
3,810
3,920
4,010
4,010
4,030

2,430
2,370
2,370
2,330
2,290
2,290
2,290
2,300
2,330
2,270
2,320
2,330

7,110
6,940
6,890
6,690
6,450
6,150
6,090
6,110
6,250
6,280
6,330
6,360

6,683
6,562
6,353
5,985
5,433
5,281

2,626
2,563
2,441
2,248
2,222
2,009
(5)2,180
2,083
2,236
2,163
2,197
2,286

4,057
4,099
3,912
3,724
3,211
3,272

E

(4)
(4)
(4)

8!

(4)
(4)
(4)
(4)

1969 - Dec.

-100

60

-40

334

190

144

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

-290

-150
- 40

-440
-170
- 50

-762

-177
-163

-585
42
-187

1
2
3

-110

- 50
-160

200

40
40

- 10

-350
- 10

110

90
2
18

10
30
60
50
10

-200

240
-300
- 60
- 20/

140
30
52
28

-121

-209
-368
-552
-152

-22

rl93
- 26

-213
171
97
153
- 73
34
89

-188

-513
- 61

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 an£.>re 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
SAVINGS & LOAN ASSOCIATIONS
REGULAR DEPOSITS 3
NET
SHARE CAPITAL
NET
ANNUAL
NEW
ANNUAL
NEW
2
GROWTH ' MONEY
NET
NET
GROWTH
MONEY 2
1
1
RATE
FLOW
FLOW
RATE

TOTAL
DEPOSITS
ANNUAL
NET
GROWTH
RATE 1
FLOW

NET
NEW
MONEY 2

Not Seasonally Adjusted
1968
197^/
1969 - Nov.
Dec.
1970 - Jan.
1970 - Nov. .
Dec.E/
1971 - Jan.#

4,203
2,549
4,466
257
571
-114
497
1,167
750

7.0
4.0
6.7

1,143 7,432
-763 4,019
936 11,083
179
226
-237 1,069
-240 -1,371
388
376
n. a.

1,098
2,730
2,460

~ 6.0
3.1
8.2

6.3
3.4
7.7

3,881
-1,766
6,224

2,738
-1,003
5,288

11,635
6,568
15,549

207
-387
-1,418

483
1,640
-1,485

386
-624
-1,658

1,044
1,154
n.a.

1,595
3,897
3,210

1,432
1,530
n.a.

Seasonally Adjusted
6.8
—
268
785
1,053
4.7
7.6
11.9
1,830
1,393
437
11.9
1,399
1,843
444
7.7
1,092
9.2
1,623
9.1
531
14.6
14.1
1,755
2,577
822
3,256
26.8
13.4
4,047
791
1971 - Jan.'
1 Annual growth rate for monthly data is the annualized monthly percentage increase

1970 - Aug.
Sept.
Oct.

2
3

6.1
10.5
10.5
9.2
14.4
22.4
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.




TABLE 11: Mortgage Commitments at Selected Thrift Institutions 1
NET CHANGE

OUTSTANDING COMMITMENTS

DATE

4

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

TOTAL

ALL
ALL
MUTUAL
1
SAVINGS
SAVINGS &
TOTAL
SAVINGS &
BANKS
LOAN
LOAN
(N.Y. STATE)
ASSOCIATIONS
ASSOCIATIONS
-•
(Billions of Dollars, S<asonally Adjusted) 1/

8.3^
8.0^/
7.6
7.8
8.0
8.6
8.8
9.1 ,

5.7^
5.52/
5.2
5.4
5i8
6.5
6.8

: #
10.0%/

7.8%/
8.1
8.4

- Jan.

2.6
2.5
2.5
2.4
2.2
2.0
2.0
1.9
1.9
1.9
1.9

-.14
-.27
-.29
.08
.20
.37
.21
.26
.31
.28
.06

MUTUAL
SAVINGS
BANKS
(N.Y. STATE)

-.18
-.20
-.24
.21
.34
.41
.29
.36
.37
.35
.28
.25

)\

Based on data from Federal-,-Home Loan Bank Board and Savings Banks Associations of

New York State. Data for savings banks and S&L's include a minor amount of nonresidential commitments. S&L commitments include loans in process. Net changes
are derived directly from unrounded outstandings levels as reported and after
seasonal adjustment by Federal Reserve. Subtotals may not add to totals because
of rounding.




.04
-.07
-.05
-.13
-.14
-.04
-.08
-.10
-.06
-.07
-.22

18
TABLE 12: Net Change in Mortgage Holdings1

DATE

T

TOTAL
INCLUDING
FNMA-GNMA

FINANCIAL INSTITUTIONS
MUTUAL
SAVINGS &
SAVINGS
LOAN.
BANKS
ASSOC.

TOTAL

COMMERCIAL
BANKS

18,105
20,016
23,781
24,051

15,782
18,219
21,273
19,676

1969 - Nov.
- Dec.

1,636
2,120

1,042
1,475

1970 - Jan.

1,041

1966
1967
1968
196ST/

1970 - Nov.
- Dec.

437
r

2,178
2,763

r

l,925
2,615

1971 - Jan.
1

1,469
1,542
1,330
1,351
1,485
1,749
2,083
1,817
2,091
2,074
2,187
2,554
n.a.

919
1,044
809
844
1,050
1,281
1,575
1,409
1,727
1,754
1,958
2,454

2,323
1,797
2,508
4,375
594
645

151
325

450
533

141
417

50

38

136

213

300
200

231
199
140
76
65
81
165
168
228
195
224
312
283

183
254
n.a.

1,322
1,666
967

Seasonally Adiusted
.25
452
482
143
322
186
385
188
155
631
201
777
142
1,055
983
175
245
1,103
1,189
170
1*427
176
208
1,704
x n.a.

1,287

FNMA-GNMA

4,596
2,907
2,459
2,052

300
200

100

1971 - Jan.
1970 - Jan.
Feb.
Mar.
Apr.
Hay
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

Not Seasonally Adiusted
2,720
4,705
3,761
3,153
7,520
4,639
2,787
9,350
6,677
2,682
5,535
9,407

LIFE
INSURANCE
COMPANIES

604
r

120
495

253
148

n.a.

n.a.

211
220
161
195
199
222
213
83
151
200
131
232

550
498
521
507
435
468
508
408
364
320
229
100

n.a.

n.a.

v
"
t

t

;

)

Monthly data for commercial banks based on Federal Reserve estimates b'enchmarked
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 thererafter 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 1969.




19

TABLE 13: Net Increases in Mor tgage Debt Outstanding

QUARTER

TOTAL

Billions of dollars, SAAR-1- to 4- MULTIRESIDENTIAL3 FAMILY FAMILY COMMERCIAL

1

MULTI-AND
COMMERCIAL

FARM !

1966 - II
IV

18.6
15.1

10.9
9.1

8.3
7.0

2.6
2.1

5.5
4.1

8.2
6.0

2.2
1.8

1967 - I
XX
III
IV

15.9
20.7
26.6
27.3

10.3
13.9
19.2
19.8

7.0
10.5
15.3
16.0

3.3
3.4
3,9
3.8

3.9
5.0
4.9
4.8

7.3
8.4
8.8
8.4

1.8
1.8
2.5
2.8

1968 - I

27.7
26.2
26.0
29.6

19.0
18.2
17.7
20.2

15.8
15.0
14.1
16.4

3.1
3.2
3.4
3.8

6.4
5.9
6.5
7.5

9.4
9.2
10.2
11.1

2.3
2.2
1.8
1.8

1969 - Ip
IIP
IIIp
IVp

31.3
28.9
26.5
30.4

29.0
21.5
19.3
18.3

18.6
16.8
14.6
13.0

4.4
4.7
4.7
5.3

6.2
5.2
5.3
5.4

10.4
10.1
10.0
10.7

2.2
2.2
1.8
1.4

1970 - Ip

20.3
23.4
26.9

13.8
16.9
20.9

8.8
11.5
15.0

5.0
5.4
6.0

5.0
5.0
4.2

9.8
9.8
10.1

1.5
1.5
1.7

n

III
IV-

IIIp
IVp

...

l Derived from data on mortgage debt outstanding from Fed^ITDeposit Insurance '
Corporation, Federal Home Loan Bank Board, Institute of Life Insurance, Na^
tional 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 nonfarm mortgage debt by type of property, where not available, and interpolations
and extrapolations, where required^estimated mainly by Federal Reserve.
May differ somewhat from related flow of funds serfe? mainly because of more
aggregative type of seasonal adjustment.
Residential mortgage debt includes nonfarm only and is sum of l-to 4- farilv
™
and multifamily mortgage debt combined.




TABLE 14: FNMA Weekly "Auction" Results

WEEK
ENDED

COMMITMENTS IN $ MILLIONS
ACCEPTED
1-YEARN
906TOTAL
TOTAL
DAY MONTH & OVER
OFFERED

149.8
149.7
181.2
170.3

7
14
28

267.5
352.5
341.5
222.4
166.5
165.5
60.6

- Jan. 25

44.6

35.5
23.3

- Oct.

5
19

Nov.

2
16

Dec.

Feb.

8

23.4

62.2
53.2
100.1
75.8

127.8 54.7
124.7 42.1
48.1 17.2
9.9
10.6

73.1
88.1
62.4
79.4
60.9
72.1
28.9
25.6

90-

6-

1-YEAR 1
& OVER

DAY

MONTH

14.5
8.4
18.7
15.1

8.90
8.89
8.90
8.89

8.92
8.90
8.93
8.90

8.97
8.95
8.93
8.92

12.2
10.5
3.0

8.56
8.51
8.41

8.54
8.43
8.36

8.57
8.47
8.40

7.83
7.67

7.96

--

—

12.7

IMPLICIT YIELD2(per cent)

7.67

I
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.

J

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 38 basis points fee paid by investors

to servicers. Prior to August 10, 1970 the servicing fee was 50 basis points.




21
TABLE 15: Private Housing Starts and Permits

STARTS
DATE

- Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
• Jan. j>/

SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE
1,059
1,306
1,392
1,224
1,242
1,393
1,603
1,425
1,509
1,583
1,693
2,028
1,701

577
725
708
697
728
835
827
838
881
890
934
1,228
931

482
581
684
527
514
558
776
587
627
693
759
800
770

TOTAL

66.4
74.3
114.7
128.4
125.0
135.2
140.8
128.7
130.9
140.9
126.9
119.9
109.1

UNADJUSTED
TYPE OF FINANCING
FHA VA
OTHER

16.5
17.5
25.2
32.4
37.1
40.7
43.4
34.1
34.3
40.4
33.7
63.2
32.3

3.4
3.9
4.8
5.4
5.2
5.1
5.3
5.6
5.3
5.8
5.5
5.7
4.6

46.5
52.9
84.7
90.6
80.8
89.4
92.1
87.7
91.3
94.7
87.2
51.0
72.2

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE)2
1,013
1,137
1,099
1,263
1,321
1,306
1,275
1,326
1,371
1,521
1,487
1,768
1,595

1 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 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.




I

TABLE 16: Mortgage and Bond Yields

DATE

FHA
MORTGAGES 2
30-YEAR

1

CONVEN- SPREAD BENEW
TIONAL TWEEN YIELDS Aaa CORMORTON CONV. &
PORATE
FHA MORTGAGES
BONDS
3
4
GAGES

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES

1967 - High
- Low
1968 - High
Low
1969 - High
Low

6.81
6.29
7.52
6.78
8.62
7.99

6.70
6.40
7.40
6.75
8.35
7.55

.11
-.12
.02
-.27
-.13
-.40

6.51
5.18
6.79
6.15
8.75
6.91

1.28
.27
1.20
.26
1.08
-.13

1970 - High
Low

9.29
8.40

8.60
8.30

-.10
-.74

9.11
7.80

.99
.01

1970 - Sept.
Oct.
Nov.
Dec.

9.01
8.97
8.90
8.40

8.50
8.50
8.45
8.30

-.51
-.47
-.45
-.10

8.42
8.63
8.34
7.80

.59
.34
.56
.60

1971 -Jan.
7.95
n.a.
7.24
n.a.
1 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

3

4

Based on FHA-field-office-opinions about average bid prices in the private
secondary market for new-home mortgages for Immediate delivery. Data shown
are for 30-year mortgages with minimum downpayments, and weighted by probable
volume of transactions. Yields computed by FHA, assuming prepayment period
of 15 years for 30-year mortgages. Dashed lines indicate periods of adjustment to changes in contractual interest rates.
Based on FHA-field-office opinion on typical interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring officecities. Beginning with April 1960, rate relates only to new-home mortgages;
prior to that date, rate related to both new as well as existing-home mortgages. Dashed line indicates this change in the series.
See note for Table 1.




23

TABLE 17: Conventional Mortgage Terms

DATE

1

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

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

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

8.16
8.23
8.29
8.24
8.28
8.31
8.32
8.35
8.31
8.33
8.26
8.20

1.08
1.09
1.11
1.02
0.98
0.99
1.01
0.98
1.03
1.05
0.99
1.07

8.34
8.41
8.47
8.41
8.45
8.48
8.49
8.52
8.48
8.51
8.43
8.38

25.0
24.2
25.0
24.8
25.3
25.1
25.1
24.8
25.2
25.1
25.3
25.8

69.3
71.8
71.1
71.3
71.7
71.3
71.5
71.6
72.7
72.4
72.1
73.8

25.1
24.9
25.1
24.5
25.3
25.6
24.9
25.5
25.3
24.8
25.2
25.8

8.13
8.23
8.26
8.19
8.18
8.19
8.21
8.25
8.27
8.20
8.18
8.12

0.94
1.02
0.98
0.90
0.94
0.98
0.95
0.89
0.88
0.88
0.85
0.85

8.29
8.41
8.43
8.34
8.34
8.36
8.37
8.41
8.42
8.35
8.32
8.26

22.4
22.4
22.6
22.7
22.8
23.0
23.1
23.1
22.8
22.8
22.7
23.3

70.3
70.2
70.4
70.2
70.3
71.5
71.5
71.7
71.7
71.5
71.5
71.9

20.5
20.4
20.6
20.4
21.1
21.5
21.7
21.4
21.0
20.5
21.1
21.7

8.02

0.89

8.17

25.7

73.1

26.4

7.93

0.82

8.07

23.4

72.3

22 x

1970

Jan.
Feb.
Mar.
Apr.
May
June
July.
Aug.
Sept.
Oct.
Nov.
Dec.
1971

Jan. ^

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 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.




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