Full text of H.16 Capital Market Developments : March 16, 1970

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

emm

. DECONTROLLED AFTER SIX
L.5.8

Confidential (F.R.)

M a r c h 16, 1970.

CAPITAL
MARKET

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

C a p i t a l Market Y i e l d s

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 - Feb.

Mar.

Mar.

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

6
13
20
27

8.63
8.40
8.32
8.20

7.97
7.97
7.93
7.83

206
140
408
297

6
13
20 £ /

8.25
8.52
n. a.

7.79
7.80
n.a.

370
470
500e

WEEK ENDING:

1970 - Feb.

YIELDS
MOODY'S
SEASONED
1
NEW ISSUE
Aaa

6
13
20
27
6 I
13
20 £ /

YIELDS
BOND BUYER
MOODY'S
SEASONED 20 ,
SEASONED
BOND INDEX
6.28
6.54
6.26
6.42
6.24
6.32
6.00
6.16
5.85
5.75
n.a.

6.00
5.95
n.a.

100
86
96
81
78
71
n. a.

MUNICIPAL BOND MARKET'
VOLUME'
PER CENT
GROSS
SOLD BY END
OF WEEK
OFFERINGS
343
142
300
450
276
321
300e

.

842
1,065
1,039
980
1,074
851
n.a.

BONDS SCHEDULED
WITHIN 28 DAYS

74
74
83
87

740
785
746
496

72
59
n.a.

784
954
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
3/12
3/12
.3/11
3/10
3/10
3/10

OFFERED

AMOUNT
(MIL. $)
30.0
40.0
40i0
100.0
100.0
75.0

DATE
| RELEXSED

3/3
3/4

3/9
3/11

Mar.

N.C.
1

Duquesne Light
Allegheny Ludham
Michigan-Wisconsin Pipeline
Chrysler(Debs.)
Chrysler (Notes)
Chesapeake & Potomac Tel.
of Virginia

8-3/4
9.00
9-1/4
8-7/8 *
8-3/4

8.77
8.95
9-1/4
8-7/8
8-3/4

Aa
A
A
A
A

8-3/4

8.65

Aaa

5
10
5
10
5

ESTIMATED PROPORTION SOLD

yrs.
yrs.
yrs.
yrs.
yrs.

50%
90%
40%
60%
98%

5 yrs.

30%

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

AMOUNT
35.0
75.0

Kansas Gas & Elec.
Pacific Gas & Elec.

INVENTORIES 1
MUNICIPALS
BLUE LIST
|
IN SYNDICATE

DATE
1970 - Feb.

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

8.50
8-5/8

8.50
8.55

' +16
+18

Aa
Aa

67%
30%

CORPORATES,
IN SYNDICATE

13
20
27

342
347
339

106
63
63

20
18
55

6
132/.

402
450

84
157

81
138

All figures in millions'of dollars.

which is daily average of three days


5 yrs .
5 yrs,

Blue List is daily average for week ended Friday,except for latest week
ended Wednesday. All other figures are as of Friday.

BONDS IN SYNDICATE
Friday figures

I

Millions of dollars

CORPORATE BONDS IN SYNDICATE

200
100

T
T
MUNICIPAL BONDS IN SYNDICATE
300

200

SEPT.

DEC.

'68




MAR.

JUN.

1969

SEPT.

DEC.

MAR.

JUN.

1970

SEPT.

DEC.

TABLE 3: High Grade Bond Yields
U.S. GOVERNMENT
2.0-YEAR
CONSTANT
MATURITIES 3 •

BOND
BUYER'S ,
SEASONED
MUNICIPALS 4

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

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

4.45(12/7)
3.40(2/2)

MOODY'S SEASONED
CORPORATE
Aaa 2 ,

1967 - High
Low

' NEW
CORPORATE
Aaa 1
6.55(12/8)
5.11(2/10)

1968 - High
Low

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

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

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

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

1969 - High
Low

8.85(12/5)
6 * 90(2/21)

7.84(12/26)
6.55(1/3)

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

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

13
20
27

8.40
8.32
8.20

7.97
7.93
7,83

6.65
6.60
6.57

6.42
6.32
6.16

6'
13 £ /

8.25
8.52

7 ; 79
7.80

DATE

1970 - Feb.

Mar.

1

\

6.60
* 6.75

4

6.00
5.95

New corporate issues, with call protection, adjusted (as described in
footnote 1 of Table 1) to a Aaa basis.
2
Weekly average of daily figures. Average term of bonds included is
22-24 years.
Weekly average of daily figures.
; •
3
4
Thursday figures. The aiverage rating of the 20 bonds used in this index
1
falls midway between.the four top groups as classified by Moody's Investors Service.
Note--Highs and lows are for individual series and may be on different dates
for different series.




HIGH GRADE BOND YIELDS

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
STATE AND LOCAL 2

CORPORATE 1

PERIOD

196 8

19 70

196 9

2,075
2,045
2,098

1,771 ' !
1,608
|
1,799
i

l,300e
l,250e
l,200e

1,262
987
538

1,178
1,158
1,404

-April
May
June

2,748
2,076
2,530

1,428
1,866
2,411

1,801
1,110
737

1,318
1,143
1^395

July
August
September

2,478
1,427
2,427

2,143
1,432
1,557

1,097
808
559

1,469
1,699
1,444

1,933
2,375
2,532

2,129
1,767
2,054

1,280
886
816

2,230
1,021'
1,115

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

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

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

October
•November
December
1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter '

1st half
Three quarters
Year

19 7 0

1969

2,400e
l,810e
3,300e

.

-

7,510e

13,572
19,904
26,744

*

10,882
16,015
21,965

j.;',
j ' '

'

i

!

3,750e

•

1968

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

Quarter
Quarter
Quarter
Quarter

' Year
1
2
3

6,170

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.
«




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

QUARTER
OR
MONTH

TOTAL

1968 -~I\T~
1969 - I
II
III
IV

5~951
6,218
7,354
6,332
6,840

PUBLICLY
OFFERED
2,555
2,657
3,411
3,186
3,479

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

2,045
2,098
2,748
2,076
2,530
2,478
1.426
2.427
1,933
2,375
2,532
2,400

842
835
1,268
871
1,272
1,279
685
1,222
969
1,164
1,346
1,550

1

1,810

1,060

GROSS PROCEEDS BY
GROSS PROCEEDS BY
TYPE OF ISSUER
TYPE OF ISSUE
COMMON
MEMO:
AND
COMMUNIPUBLIC
PRIVATELY PFD.
ISSUES INCLUDED
MFG.
CATIONS
UTILITY
PLACED
STOCK
FOREIGN
CONVERTIBLE
1,922
113
902
1,474
1,712
1,435
319
1,540
2,023
215
1,355
1,407
1,346
473
1,623
2,268
227
1,126
1,773
1,878
432
289
1,347
750
1,862
684
1,544
1,797
115
809
1,053
1,314
2,307
1,967
598

395
509
649
510
514
609
259
479
313
226
514
300
300

807
755
830
694
744
589
482
726
651
984
672
550
450

74
38
62
28
137
132
122
35
59

8
48
n. a.
h.a

578
401
430
463
233
214
167
369
105
303
401
330

513
491
513
569
691
875
362
625
260
453
601

100

500

800

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.




315
404
784
392
702
493
507
544
745
622

600

650
480

56
231
44
197
191
286
126
272
120
201
277
125
220

OTHER

2,483
2,993
3,266
2,243
2,961

1,161
972
1,405
915
946
826
433
984

808
1,099
1,054
825

610

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

ISSUER

'

, '

i

,

. . TYPE 2

AMOUNT
(MILLIONS
OF
" DOLLARS)

MATURITY

through March 13, 1970.
COUPON
OFFER-. MOODY':*
HAT 11 OR
RAT INC
NI:I I.;TERINC
YIELD
1 ST COST

Corporate
Baxter Laboratories, Inc.
Aluminum Co. of Canada Ltd.
Kansas Gas & Elec. Co.
Fruehauf Finance Company
Pacific Gas & Elec. Co.
Mack Financial Corporation
Chrysler Corporation
Chrysler Corporation
U.S. Lines Inc.
C&P Telephone of Virginia
Michigan Wisconsin Pipe
Line
VEPCO
^Standard Oil Co. (Jersey)
Pitney-Bowes, Inc.
Duquesne Light Co.
Texas Elec. Serv. Co.
Allegheny Ludlum Steel
Corporation
*South Caroline Elec. & Gas
Company




Conv. debs.
60.0
Debs.
100.0
1st mtg.
40.0
Notes
50.0
1st & Ref.
75.0
Sr. debs.
40.0
S.F. debs.
100.0
Notes
100.0
Merchant Marine 32.0
Debs. '
75.0

1990
1995
£000
1975
2002
1990
1995
1975
1991
2010

4. 75
9. 50
8. 50
8. 70
8. 63
9. 63
8.,88
8.,75
8.,63
8..75

Bonds 40.0
Com. stk.
74.3
Cap. notes
387.1
Com. stk.
28.4
1st mtg.
30.0
Pfd. cum. stk. 20.0

1990

S.F. debs.

40.0
-

Com. stk.

18.8

4i 75
9.37
8.50
8.70
8.55
9.63
8.88
8.75
8.63
8.65

Ba
A
Aa
N.R,
Aa
N.R,
A
A
Aaa
Aaa

9..25

9.25

A

2000
2000

8.75

, 8.77

A

1995

9 .00

8.95

-

TABLE 6: Large Long-term Public Security Issues for New Capital (continued)
(Other than U.S. f r e a s v y ) 1
(Continued)
I
ISSUER

)

TYPE 2

AMOUNT
(MILLIONS
OF
DOLLARS)

March 1. through March 13. 1970
COUPON
RATE OR
MOODY'S
OFFERMATURITY NET INTERING
RATING
EST COST
YIKLD

State & local Government
Minnesota, State of
Cleveland, Ohio
Charlotte, North Carolina
Detroit, Michigan
Detroit S/D, Michigan
Maryland, State of
Alaska, State of
Ohio, State of
South Carolina
Indianapolis Airport Auth.,
Indiana
Gainesville, Florida
New Jersey, State of
New York State Housing
Finance Agency

G.O.
G.O.
G.O.
G.O.
G.O.
G.O.
G.O.
G.O.
G.O.

12.0
30.4
10.0
13.4
18.0
45.2
11.3
55.0
30.0

1974-77
1972-96
1972-94
1971-85
1971-81
1973-85
1971-80
1971-95
1971-82

4. 98
5. 97
5. 34
6. 37
5.,86
5. 23
5. 49
5.,65
4.,73

Rev.
Rev.
G.O.

10.0
19.0
75.0

1972-91
1971-1998
1973-95

5.,35
6.,20
5..39

4.20-5.50
4.20-6.40
4.30-5.90

Aaa
A
Aaa

G.O.

80.0

1974-13

6,.59

4.90-6.60

A

60,0

1995
1980

9.20
7. 75

4.70-5.00
4.70-6.25
4.40-6.10
5.00-6.90
5.00-6.00
4.40-5.40
4.70-5.50
4.25^5.80&6.00
4.00-4.88

Aa
A
Aa
Baa
Baa
Aaa
BaaAaa
Aaa

Other
Quebec Hydro-Elec. Comm.
Federal Home Loan Banks

Debs.
Consol. Bds.

350.0

9.40
7.75

flights offering.
Includes corporate and other security offerings of $15 million and over;
State and local security offerings of $10 million and over.
In case of State and local government securities, G.O. denotes general obligation;
Rev.-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.
Includes foreign government and International Bank for Reconstruction and
Development issues and non-quaranteed issues by Federal Agencies.




TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury),1
As of March 13, 1970.

.

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

Corporate
Phelps-Dodge
Debs.
General Telephone Co. of
Southwest
Bonds
^
Public Service Elec. & Gas
Company
1st mtg.
Baltimore Gas & Elec. Co. 1st & ref.
Public Service of Indiana Bonds
University Computing Co.
Conv. debs.
Hudson Leasing Corp.
Conv. sub. debs.
*Household Finance Co.
Debs.
*Pennsylvania Power & Light 1st mtg.
Atlantic City Elec. Co.
1st mtg.
Crown Zellerback
Debs.
Texas Gas Transmission
Debs.
Utah Power & Light Co.
1st mtg.
International Paper
Debs.
Iowa-Public Service Co.
1st mtg.
American Century Mtg.
Investors
Conv. debs.
*Atchinson Topeka and
Santa Fe Railway
Equip, trust
Montana Power Company
1st mtg.
Iowa Public Service Co.
1st mtg.
Pacific Tel. & Tel. Co.
Debs.
Harvester Credit Corp.
Debs.
R.C.A.
Debs.
Central Illinois Pub.
Service
Bonds
^Arizona Pub. Serv. Co.
Bonds
Transcontinental Gas Pipeline Corporation
Bonds
Columbia Gas System Inc.
Debs.
Kentucky Utilities Co.
1st mtg.
Big Three Industrial Gas
& Equipment Co.
Conv. debs.
Georgia Power Co.
1st mtg.
Indiana & Michigan Elec.
Company
1st mtg.
Indiana & Michigan Elec.
Company
1st mtg.
Truckline Gas Co.
Pfd. stk.
Truckline Gas Co.
1st mtg.
^Commonwealth Edison
1st mtg.




100.0

March

18

26.0

March

18

100.0
40.0
40.0
60.0
15.0
50.0
50.0
15.0
125.0
50.0
30.0
150.0.
25.0

March
March
March
March
March
March
March
March
March
March
March
March
March

18
18
18
18
18
19
23
24
24
24
24
24
25

15.0

March

25

37.0
30.0
25.0
100.0
100.0
150.0

March
March
March
March
March
March

25
25
25
31

25.0
30.0

April
April

1
1

50.0
40.0
30.0

April
April
April

1
2
2

25.0
60.0

April
April

6
6

50.0

April

7

15.0
20.0
40.0
100.0

April
April
April

7
7
7

April

' .

1
?

!

/c?ri~

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

ISSUER

Corporate

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

-

APPROXIMATE DATE
OF OFFERING

(Continued)

*Union Electric Company
*Kansas-Nebraska Natural
Gas Company
*Pennsylvania Elec. Co.
AT&T
*VEPCO

1st mtg.
1st mtg.
1st mtg.
Debs, w/w
1st mtg.

60.0
15.0
25.0
1569.0
85.0

-

April

14

April
April
April
April

15
16
18(rts. exp.)
21

State & local Government
Greater Anchorage Area
Borugh, Alaska
Michigan, State of
*Warwick, R. I.
Newark, New Jersey
Pennsylvania State Public
School Building Auth.
*New York, State of
Atlanta, Georgia
Allegheny Co. P/A, Pa.
*Puerto Rico Highway
Buffalo, New York
*Maine, State of
Port of Seattle Washington
Virgin Islands Wtr. and
Pwr. Auth.
Dallasy Texas
*Chicago, Illinois 0 * Hare
Washington, State of
*Elkart Comm. HSBC, Ind.
Tennessee, State of
^Baltimore, Maryland
Lake Co., Ind.
Philadelphia S/D/, Pa.
San Diego Unified Port
Dist., California
*Nashville and Davidson
Co. Metro, Tenn.
*0regon, State of
Los Angeles Dept. of Wtr.
and Power, California
Clark Co. S/D Nevada
University of California




G.O.
G.O.
G.O.
G.O.

13.4
36.0
10.2
20.5

March
March
March
March

16
17
17
17

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

30.0
75.0
18.0
25.0
40.0
17.5
16.5
23.0

March
March
March
March
March
March
March
March

17
17
18
18
19
23
24
24

Rev.
G.O.6c Rev.
Rev.
Rev.
Rev.
G.O,
G.O.
G.O.
G.O.

20,0
38.2
52.0
25.0
13.1
53.0
35.0
15.0
73.0

March
March
March
March
March
April
April
April
April

24
25
25
31
31
1
2
2
7

Bonds

25.4

April

7

Bonds
G.O.

44.0
23.7

April
April

7
7

Rev.
G.O.
Rev.

33.0
13.0

April
April

8
9

11.6

April

-

13

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

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

State & local Government
(Continued)
^Montgomery Co., Maryland
Norfolk, Virginia
Los Angeles Co. Flood Control
Dist.j California
*Wayne - Co., Detorit Airport
Sacramento, MUD, California

G.O.
G.O.

35.9
35.0

April
April

14
14

Rev.
Rev.
Rev.

20.0
69.0
29.0

April
April
April

21
21
23

100.0
200.020.0

March
March
March

17
18
19

Other
Tennessee Valley Auth.
FNMA
Nova Scotia (Province of)

Bonds
Debs.
S.F. debs.

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.




f

TABLE 8: Stock Prices and Volume
TRADING; VOLUME 2

1967 - High
Low

STOCK PRICES 1
S&P,
D.J. - IND.
AMEX 4
5003
97.59(9/25) 943.08(9/25) 24.52(12/29)
80.38(1/3)
786.41(1/3) 13.78(1/27)

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

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

1968 - High
Low

108.37(11/29) 985.21(12/3) 33.25(12/20)
87.72(3/5)
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

106.16(5/14)
89.20(7/17)

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

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

60.0

20.0

54.4
54.7
48.5

17.0
18.5

16.2

58.2

18.4

47.1

15.7

DATE

1970 - Feb.

Mar.

l

6
13
20
27

86.33
86.54
88.03
89.50

6
89.44
13£j 87.86

968.85(5/14) 32.91(1/3)
769.93(12/17)25.02(7/29)
752.77
753.30
757.46
777.59
784.12
772.11

25.56
25.61
25.63
25.80
25.58
25.10

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

AMEX

NYSE

Highs and lows are

Total number of shares traded per week (millions of shares). In the past,
trading was normally conducted 5 days a week for 5 1/2 hours per day, or
27 1/2 hours per week. From August 8 through August 20, 1967, daily trading was reduced to 4 hours per day or 20 hours per week. A 20-hour week
was also in effect from January 22 through March 1, 1968. From June 30
through December 31, 1968, the exchanges were open 5 1/2 hours for 4 days
a week or 22 hours. From January 3 through July 3, 1969, the exchanges
were open 4 hours each day, 20 hours per week. Beginning July 7, 1969.
the exchanges have been open 4 1/2 hours each day, 22 1/2 hours per week.
NYSE is New York Stock Exchange; AMEX is American Stock Exchange.
i941-43 = 10.
4

Average dollar value of shares listed.




.

15

STOCK PRICES AND TRADING VOLUME
AM EX .
3 6

'

DJ

Weekly

(Ind.)

s&p
(500)

1280 128

1 STOCK PRICES
AM EX PRICE LEVEL INDEX

1200 120
1120 112

S&P's 500

1040 104

24,

960

96

880

88

\A;
D.J. IND.

800 80
720
Millions of sharejs

AM1X TRADING VOLUME (total for wt.r.K)

20
TT
TRADING VOLUME (TCifL TOR wrr.K)

100

80

40

1966

1967




1968

1969

.

1970

72

17

TABLE 9: Security Credit

1

CREDIT EXTENDED TO
.
MARGIN CUSTOMERS BY:
TOTAL
BROKERS 1 j
END OF PERIOD

CUSTOMERS 1
NET DEBIT
BALANCES

NET CREDIT
CUSTOMERS 1 NET EXTENDED BY
BROKERS AND
FREE CREDIT
DEALERS 3
BALANCES

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

5,930
5,750
5,590
5,570
5,670
5,340
5,170
5,000
4,940
5,040
5,070
4,970

2,750
2,810
2,780
2,760
2,770
2,740
2,700
2,670
2,620
2,570
2,520
2,580

8,680
8,560
8,370
8,330
8,440
8,080
7,870
7,670
7,560
7,610
7,590
7,550

9,042
9,148
8,318
8,044
8,474
8,214
7,515
7,019
7,039
7,243
7,111
7,445

3,597
3,647
3,294
3,077
3,084
3,085
2,783
2,577
2,579
2,753
2,613
2,803

5,445
5,501
5,024
4,967
5,390
5,129
4,732
4,442
4,460
4,490
4,498
4,642

1970 - Jan. £/

4,720

2,430

7,150

6,683

2,626

4,057

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

-270
-180
-160
-20
100
-330
-170
-170
-60
100
30
-100

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

-220
-120
-190
-40
110
-360
-210
-200
-110
50
-20
-40

-928
-51
-830
-274
430
-260
-699
-496
20
204
-132
334

1970 - Jan. £/

-250

-150

-400

-762

Change in
Outstanding:

"1

2
3

'

-120
50
-351
-271
7
1
-302
-206
2
174
-140
190

> -177

-628
-9
-477
-57
423
-261
-397
-290
18 ,
30
8
144
-585

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




TABLE 10: Savings Flows/at Nonbank Depositary Intermediaries
($ millions)

DATE

MUTUAL SAVINGS BANKS
REGULAR DEPOSITS 3
NET
ANNUAL
GROWTH
MONEY 2
NET
FLOW
RATE 1

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

TOTAL
DEPOSITS
ANNUAL
NET
GROWTH
FLOW
RATE 1

NET
NEW
MONEY 2

6,129
2,676
-998

15,731
11,607
6,507

8,505
3,819
-1,745

178
-130
569

2,340
126
936

1,069
• --'
-383
-1,404
--1,465
280
—
n. a.
Seasonally JAdjusted

1,576
-1,514
505

Not Seasonally Adjusted
1967
1968
1969

5,082
4,208
2,487

1968 - Dec.
1969 - Jan.
Feb.
1969 - Dec.
1970 - Jan.
Feb.

694
218
331

£/
£/

1969 - Sept,
Oct.
Nov.
Dec,
1970 - Jan.
Feb.
1
2
3

£/

507
-110
225

9.3
7.1
3.9

;;
-

148
48
272
165

2.7
0.9
4.9
3.0

-113
277

-2.0
5.0

2,376
1,143
-747

10,649
7,399
4,020

-26
106
264

1,646
-91
605

-237
-233
150

—

--

9.4
6.0
3.1

446
-173
265
47

4.0
-1.5
" 2.4
0.4

-741
322

-6.6
2.9

-

9.4
6.3
3.3

152
-24
833

-

. --'
—
—•

594
-125
537
173

3.6
-0.8
3.2
1.3

-844
599

-5.1
3.6

**

• -620
1,698
n.a.

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 fori
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.
SOURCES: National Association of Mutual Savings Banks arid Federal Home Loan. Bank Board.




SAVINGS FLOWS (seasonally adjusted)
Monthly

°

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

2000
1600
TOTAL

1200

800
400

400

1200
SAVINGS. & LOANS

800
400

400

800
MUTUAL SAVINGS BANKS

400

400
1966




1967

1968

1969

1970

TAl3i E 11: Mortgage Commitments at Selected Thrift Institutions1

DATE

TOTAL

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

TOTAL

NET CHANGE
' •
; MUTUAL
ALL
SAVINGS &
SAVINGS
BANKS
LOAN
•
' (N.Y. STATE)
ASSOCIATIONS

(Billions of Dollars, Seasonally Adjusted) \J

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

8.4

6.7
6.9
7.0
7.2
7.1
7.0
6.8
6.5
6.4
6.1.
5.9
5.8

3.2
3.2
3.3
3.3
3.2
3.2
3.1
• 3.0
2.8
2.7
2.7
2.6

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

.11
.18
.12
.14
. -.06
-.11
-.22
-.24
-.18
-.23
-.18
-.12

:?3

8.2

5.6

.

2.6

-.15

-.19

.04

9.9

10.1
10.3
10.5
10.4
10.2
9.9
9.5
9.2
8.9

8.6

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 adid to totals because
of rounding.




.07

.06
.06
.02
.05

.06
.10

.12
.13
.09

MORTGAGE COMMITMENTS OUTSTANDING (seasonally adjusted)
Billions of dollars

Monthly

TOTAL

S&L'S

N.Y.-MSB'S

* Includes building loans beginning August 1967

1960




1962

1964

1966

1968

1970

22

TABLE 12: Net Change in Mortgage Holdings 1

DATE

TOTAL
INCLUDING
FNMA-GNMA

TOTAL

FINANCIAL INSTITUTIONS
MUTUAL
SAVINGS &
SAVINGS
COMMERCIAL
LOAN
BANKS
. BANKS
ASSOC.
Not Seasonally Adjusted

LIFE
INSURANCE
COMPANIES

FNMA-GNMA

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

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

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

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

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

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

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

1969 - Jan.

2,101

1,948

638

281

885

144

153

1969 - Oct.
Nov.
Dec.

1,795
1,636
2,079

1,206
1,042
1,434

300.
300
200

• 158
151
284

608
450
533

140
141
417

589
594
645

1970 - Jan.

n. a.

n. a.

100

112

n. a.

604

1966
1967
1968
1969

.

n. a.

Seasonally Adjusted
1969 - Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
. Nov.
Dec.

2,202
2,099
2,117
2,032
2,153
1,698
1,910
1,876
1,734
1,652
1,906

2,025
1,906
1,910
1,808
1,875
1,364
1,380
1,365
1,166
1,069
1,292

668
632
567
534
440
151
310
383
244
237
347

1970 - Jan.

n. a.

n. a.

288

1

;

266
230
240
251
230
181
157
137
124
146
235

. 884
875
899
854
1,022
859
720
654 .
627
547 .
576

207
159
194
169
183
173
193
191
171
139
134

177
193
207
224
278 .
334
530
511
568
583
614

26

376

n. a.

556

Monthly data for commercial banks based on Federal Reserve estimates benchmarked
to Call Report data on real estate loans outstanding as available. Other data
derived from mortgage debt outstanding as reported separately by National Assn.
of Mutual Savings Banks, Federal Home Loan Bank Board, Institute of Life Insurance
and, through August 1968,. the Federal National Mortgage Association, and thereafter by FNMA and the Government National Mortgage Association. Data for mutual
savings banks and for Life Insurance companies may differ somewhat from those
derived from regular quarterly series because of minor conceptual differences for
which adjustments are not made in the monthly series. Altogether, these groups
accounted for 87 per cent of the net increase estimated for all holders in 1967.




NET CHANGE IN MORTGAGE HOLDINGS (seasonally adjusted)
Monthly

Billions of dollars

TOTAL, INCL. FNMA - GNMA

2.0

FINANCIAL INSTITUTIONS

1967




1968

1969

1.5

1970

24

TABLE 13: Net Increases in Mortgage Debt Outstanding
Billions of dollars, SAAR QUARTER
1966

TOTAL

RESIDENTIAL 3

1- to 4FAMILY

MULTIFAMILY

1

COMMERCIAL

MULTI-AND
COMMERCIAL

FARM

- lj>/
II
III
IV

28.5
24.3
18.7
15.2

19.2
15.6
<1.0
9.2

14.8
12.1
8.4
7.0

4.4
3.6
2.6
2.1

6.9
6.5
5.5
4.2

11.6
10.1
8.2
6.2

3.4

1967

- if/
Hp
IIII>
IVp

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

1968

- ig/ 27,1
IIP 25.9
III i 26.5
IVp 30.1

18.4
18.0
18.2
20.5

15.4
14.8
14.6
•16.5

3.0
3.2te
3.5
4.0

6.3
5.7
6.5
7.8

9.4
8.9
10.1
11.7

2.3
2.2
1.8
1.8

1969

- ip/
IIP
III]>
IVp

22.1
21.2
19.8 —
16.9

17,9
16. 5
15.1
13.0

4.2
4,7
4.6
3.9 ;

6.1
5.0
4.6
5.1

10.3
9.6
9.1
9.0

2.2
2.3
2.0
1,9

1

2

30.4
28.5
26.4
24.0

2^2
1.8

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 M O R T G A G E DEBT O U T S T A N D I N G
Quarterly

Billions of dollars, seasonally adjusted annual rate

32
TOTAL

24

TOTAL
RESIDENTIAL

1 4 FAMILY

COMMERCIAL

MULTIFAMILY

1966




1968

1970

\
TABLE 14: FNMA

WEEK
ENDED
Weekly Auction:
1970 - Jan.
5
12
19
Bi-Weekly Auction;
1970 - Jan. 26
Feb.

9
24

Mar.

9

"Auction" Results

\

COMMITMENTS IN $ MILLIONS
IMPLICIT YIELD 2 (per cent)
ACCEPTED
1-YEARH
901-YEAR 1
90TOTAL
TOTAL
66&,OVER
OFFERED
MONTH & OVER
DAY
DAY
MONTH
704.7
637.8

122.7
150.7

8.4
8.7

70.4
81.8

43.9
60.2

9.19
9.40

9.19
9.36

9.15
9.40

581.4

297.8

37.7

187.3

72.8

9.37

9.29

9.26

497.0,
438.1

295.3
279.9

41.2
52.7

188.0
150.4

66.1
76.8

9.23
9.20

9.28
9.25

9.15
9.13

276.4 60.7
(240.0) 3/

136.5

79.2

9.16

9.19

9.13

354.5

Note: Under the FNMA auction system, approved sellers of Government-.
underwritten mortgages bid for FNMA forward purchase commitments, subject to an over-all dollar limit announced by FNMA in advance. Bids
accepted by FNMA are for delivery at the seller's option, and at any
time within the specified period. Bids on proposed homes relate to
construction not yet started on which mortgages may be delivered only
after completion and occupancy.
\
1

For "proposed construction" of new homes only.

2

Average secondary market yield after allowance for commitment fee and
required purchase and holding of FNMA stock, assuming prepayment of
15 years for 30-year Government-underwritten mortgages. Yields shown
are gross, before deduction of 50 basis points fee paid by investors
to servicers.

3

FNMA announced limit o f accepted bids for next auction.




27

FNMA "AUCTION" RESULTS

$ Millions .

200

AMOUNT OF ACCEPTED BIDS
BY COMMITMENT PERIOD

150

6 MONTHS

100

1 YEAR
AND OVER

50

3 MONTHS
12

IMPLICIT YIELD
6-MONTH COMMITMENTS

—

10

'

8
r

i

i

i

i.

' i

i

i

i

t

i
$ Millions

*

—

—

'
T O T A L BIDS RECEIVED

/

"

•

fx

•

.

•

•

-

'

'\

800

600

400

J

.

~

200

/
|

|
JUNE

j TOTAL BIDS ACCEPTED
AUG.
1969




OCT.

DEC.

I

I
FEB.

1
APR.

1

. 1
JUNE
1970

1

1

T

AUG.

:

1

1
OCT.

0

' 1
DEC.

TABLE 15: Private Housing Starts and Permits
STARTS
UNADJUSTED
TYP E OF FINANCING
FHA VA
OTHER

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2

SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE

TOTAL

1968 - Dec.

1,509

922

96.4

16.3

4.4

. 75.7

1,463

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

1,878
1,686
1,584
1,563
1,509
1,469
1,371
1,384
1,542
1,392
1,295
1,252

1,066
975
828
797
883
808
765
723
846
777
772
719

101.5
90.0
131.9
159.0
155.5
147.3
125.2
124.9
129.3
123.4
94.6
80.5

14.2
13.2
18.9
23.0
21.1
21.5
20.8
22.4
18.3
25.1
18.8
22.2

3.8
3.5
3.9
4.4
4.3
4.6
4.7
4.2
4.8
5.0
3.9
4.2

83.5
73.
109.1
131.6
130.1
121.2
99.7
98.3
106.2
93.3
71.9
53.6

1,403
1,477
1,421
1,502
1,323
1,340
1,228
1,245
1,201
1,183
1*191
1,239

DATE

585
812
711
756_
766
,626
661
606
661
696
615
523
633

1970 - Jan.
1,166
695
471
67.8
16.5
47.9
952
3.4
1 Total starts are Census estimates including farm for both permit-issuing and
non-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 guar*antee the mortgages. As reported by FHA and VA, a unit is started when a field
office receives the first compliance inspection report, which is made before .
footings are poured in some cases but normally after the foundations have been
completed. Other starts are derived as a residual, although total and FHA and
VA starts are not strictly comparable in concept or timing; other starts inelude both units financed by conventional mortgages and units without mortgages.
2 Building permits before January 1963 are Census estimates for about 10,000 areas
.identified as having a local building permit system in 1959. Estimates beginning
January 1963 are for approximately 12,000 and beginning January 1967 13,000, or
all known permit-issuing places. Unlike starts, seasonally adjusted building permits reflect direct adjustment for differences in the number of working days per
month, as well as other differences in timing and coverage.




>

1

.'I
.1

I
!
(

j

i.

PRIVATE

HOUSING

STARTS

AND

PERMITS

Monthly, annual rates

Millions of units

SEASONALLY ADJUSTED

HOUSING STARTS
1.6

1.2
BUILDING PERMITS
(in issuing areas)

^CHANGE IN SERIES

PER C E N T OF U N A D J U S T E D TOTAL STARTS

MULTI-FAMILY
(2 or more) 40

GOVERNMENT UNDERWRITTEN

1964




1966

1968

1970

TABLE 16: Mortgage and Bond Yields
FHA
MORTGAGES

2

DATE
25-YEAR 30-YEAR
1959-60 - High
1961-66 - Low
1966 - High
1967 - High
Low
1968 - High
Low

6.26
5. A3
6.73
n. a.
n. a.
n.a.
n.a.

n.a.
5^44
6.81
6.81
6.29
7.52
6.78

6.30
5.80
6.70
6.70
6.40
7.40
6.75

1969 - Aug,
Sept.
Oct.
Nov.
Dec.

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

8.36
8.40
8.48
8.48
8.62

8.20
8.25
8.30
8.35
8.35

1970 - Jan.

n. a.

n. a.

8.55

1

. NEW
Aaa CORPORATE
BONDS
4

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES

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

5. 25
4.41
5.82
6.51
5.18
6.79
6.15

1.69
.77
1.16
1.28
.27
1.20
.26

-.16
-.15
-.18
-.13
-.27

7.65
7.98
7.89
8.32
8.75

.71
.42
.59
.16
-.13

8.46

n.a.

SPREAD BETWEEN YIELDS
ON C0NV. &
FHA MORTGAGES

CONVENTIONAL
MORTGAGES
3

*

'

1

n.a.

.

.

Neither mortgage nor bond yields include allowance for servicing costs which are
much higher for mortgages than for bonds. Generally, bonds pay interest semiannually; mortgages, monthly. Mortgage yields, if computed as equivalent to
a semi-annual interest investment, would be slightly higher than given in the
table. 2
Based on FHA-field-office opinions about average bid prices in the private
secondary market for new-home mortgages for immediate delivery. Separate
data available for 25-year and—beginning July 1961--30-year mortgages with
minimum downpayments, weighted by probable volume of transactions. Yields
computed by FHA, assuming prepayment period of 12 years for 25-year mortgages
and 15 years for 30-year mortgages'. Over the period for which they can be
compared, the movement of the two mortgage yield series has been similar.
Dashed lines indicate periods of adjustment to changes in contractual interest
-urates.
'
3
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 mottgages;
prior to that date, rate related to both new as well as existing-home mort9
gages. Dashed line indicates this change in the.series.
4
See note for Table 1.




AND BOND YIELDS
>er cent

12

11

10

9

8

7

HOME MORTGAGES:

6

CONVENTIONAL
FHA

5
Aaa CORPORATE BONDS:
NEW ISSUES

4
Basis

SPREAD(FHA MORTGAGE VS. NEW ISSUE Aaa CORPORATE BONDS)

200

100
+

0

100
1962




1964

1966

1968

1970

32

TABLE 17: Conventional Mortgage Terms

DATE,.

NEW HOMES
CON- FEES &
TRACT CHARGES E F F E C - M A T U R I T Y
(YEARS)
(PER
RATE
TIVE
CENT) R A T E
(PER
CENT)
3
2 •,

LOAN /
PRICE
RATIO
(PER
CENT)

LOAN
AMT.

($000)
4

1

EXISTING HOMES
CON- FEES &
LOAN /
CHARGES
EFFECTRACT
MATU- P R I C E
(PER
RATE
RITY
RATIO
TIVE
CENT) RATE
(YEARS)
(PER
(PER
CENT)
CENT)
2
3

LOAN

!

AMT.

|

($000)'
4

1969
7.16
Jan.
Feb.
7.26
Mar. . 7.32
Apr.
7.47
May
7.50
June
7.62
July
7.7 6
Aug.
7.86
Sept. 7.89
Oct.
7.98
Nov.
7.97
Dec.
8.07

0.84
0.81
0.93
0.96
0.88
0.84
0.92
0.86
0.92
0.89
0.96
1.06

7 .30
7,.39
7..47
7,.62
7.,65
7.,76
7.,91
8. 00
8. 05
8. 13
8. 13
8. 25

25.6
25.6
25.8
25.4
25.8
25.6
25.5
25.2
25.3
25.3
25.3
25.4

73 .6
73,.3
73,.8
72.,6
73..2
73.,0
72. 0
72. 3
72. 4
72. 9
72. 8
71. 9

24.1
23.5
24.0
24.8
25.0
24.9
24.5
24,3
24.7
,25.0
?4.6
25.0

1.07

8. 35

25.0 .

7.06

25.1

7.90
7.92
7.98
8.00
8.08

0.86
0.86
0.84
0.85
0.83
0.86
0.91
0.93
0.92
0.91
0.90
0.93

7 .32
7,.42
7,.49
7,.60
7..68
7.
,79
7.,94
8. 05
8, 08
8. 13
8. 15
8. 24

22.8
22.9
23.0
23.0
22.7
22.8
22.8
22.6
22.2
22.2
22.6
22.9

72.6
72.8
72.7
71.8
71.9
71.4
71.7
71.2
70.7
70.2
70.4
70.6

20.0
19.6
20.2
19.9
19.7
20.1
20.1
19.8
19.2
19.5 '
20.1
20.8

8.13

0.94

8. 29

22.5

70.6

20.7 '

7.18
7.28
7.35
7.46
7.54
7.64

7.79

1970
Jan.

1

-

8.17

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.




CONVENTIONAL MORTGAGE TERMS
Monthly

30

MATURITY-

25

EXISTING

20

j_

:

L

1 i i i i i i i i ' i i 1 i ii i i i i i i
80

LOAN /PR ICE RATIO

NEW

75

EXISTING

70

_i_

I i II i i i i i i i i ! i i i i i i II i

L

Thousands of dollars

'

LOAN AMOUNT
-

NEW

30

/ X X

20
EXISTING

10
1

1964




1

1

1966

t i n 1 1 1 M l 1 1 1 11 M
1 lI I I I I

1

1968

1970
CHANGE,IN SERIES