Full text of H.16 Capital Market Developments : March 2, 1970

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D B C O m O L L E D AFTER SIX MOUTHS
Ll

L.5.8 Confidential, (F.R

)

it'..--..

'

^

M a r c h 2, 1970.

op'Z

CAPITAL
MARKET
DEVELOPMENTS

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




INDEX
3-5

Developments in the Corporate and Municipal Bond Markets

6-7

Capital Market Yields

8-13

Capital Market Volume

14-17

Stock Market

18-33

Mortgage Market

SYMBOLS:
e

Estimate

p

Preliminary

r

Revised

n.a.

Not available




TABLE 1: Yields, Volume and Reception

YIELDS
MOODY'S
SEASONED
1
NEW ISSUE
Aaa

WEEK ENDING:
1970 - Jan.

Feb.

Mar.

2
9
16
23
29

8.48
8.41
8.32
8.60

7.90
7.91
7.92
7.90
7.91

0
454
384
557
153

96
79
87
80

6
13
20
27

8.63
8.40
8.32
8.20

7.97
7.97
7,93
7.83

206
140
408
297

100
86
96
75e

n. a

n.a.

6*

WEEK ENDING:

1970 - Jan.

CORPORATE BOND MARKET
VOLUME,
PER CENT
GROSS
SOLD BY END
OFFERINGS
OF WEEK

2
9
16
23"
29

MOODY'S
SEASONED
Aaa

YIELDS
BOND BUYER
SEASONED 20
BOND INDEX

6.52
6.41
6.36
6.34
6.39

6.79
6.61
6.53
6.67
6.78

2

BONDS SCHEDULED
WITHIN 28 DAYS
702
905
698
786
516
842
1,065.
1,039
n.a.

330e
n.a.
n.a.
MUNICIPAL BOND MARKET
2
VOLUME
PER CENT
GROSS
BONDS SCHEDULED
SOLD BY END
OF WEEK
OFFERINGS
WITHIN 28 DAYS
52
180
303
520
286

87
86
76
76
62

Feb.

6
13
20
27
Mar. 6py

602
743
994
643
628

6.28
6.54
74
343
740
6.26
6.42
74 - .
140
785
6.24
6.32
289
83
746
,6.00
.6.16
403
87
49.6,
n. a.
n.a.
250e
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.)"
2 Millions of dollars unless otherwise indicated.
Note:

Sec footnotes to Table 3




1

T A B L E 2: Detail's on Inventories

CORPORATE BONDS IN SYNDICATE END OF JATEST >'EEK
j
'
lORIGINALj RATING AND.
ISSUER
COUPON
YIELD CALL PROTECTION

AMOUNT '
(MIL. $)

DATE
OFFERED

ESTIMATED PRO, PORTION SOLD

Not Available

DATE
OFFERED | RELEXSED
2/19

2/25

CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK
ORIGINAL INCREASE RATING AND ESTIMATED PROISSUER
COUPON
AMOUNT
YIELD IN YIELD CALL PRQT. PORTION RELEASED
30.0

DATE
1970 - Jan.

29
6
13
20
• 27j>/

. Feb.

Gulf States

8-1/2

INVENTORIES 1
MUNICIPALS
IN SYNDICATE
BLUE LIST
|
434
208
362
342
r/347
304

160
106
63
63

8.40

+14

Aa

CORPORATES
IN SYNDICATE
, '
!

5 yrs

357=

:

31
• '

o
20
18

"

z/

75

N.C. - No call protection.
1
All figures in millions of dollars. Blue List is daiflv average for week' ended Friday, except for latest week

I
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
.ml

MUNICIPAL BONDS IN SYNDICATE
300

200
100

SEPT.

DEC.

/




MAR.

JUN.

SEPT.

DEC.

MAR.

JUN.

SEPT.

DEC.

T A B L E 3: High Grade Bond; Yields

. ' NEW
CORPORATE
\ Aaa 1

DATE

MOODY'S SEASONED
CORPORATE
Aaa =

U.S. GOVERNMENT
20-YEAR
CONSTANT
MATURITIES 3

BOND
BUYER'S
SEASONED
MUNICIPALS 4

1967 - High
Low

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

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

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

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

1968 - High
Low

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

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

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

4.85(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(1/24)

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

8.32
8.60

7.90
7.91

6.92
6.94

6.67
6.78

1970 - Jan.

23
30

6
8.63
• 7.97
6.84
6.54
8.40
- 7.97
6.65
13
i.il
7.93
6-60
8.32
20
6.16
7.83
6.57
-22gZ_ 8.20
1 , New corporate issues, with call protection, adjusted (as described in
footnote 1 of Table 1) to a Aaa basis.
2
Weekly average of daily figures. Average term of bonds included is
22-24 years.
3
Weekly average of daily figures.
4
Thursday figures. The average rating of the ,20 bonds used in this index
!
falls midway between the four top groups as classified by Moody's Investors Service.
Note--Highs and lows are for individual series and may be on different dates
for different series.
Feb.




HIGH GRADE BOND YIELDS

NEW CORPORATE Aaa

MOODY'S
CORPORATE Aaa

« / V U . S . GOVT. 20-YR.
r
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 .

|

CORPORATE1l

PERIOD

STATE AND LOCAL 2

1969

1968

|

2,075
2,045
2,098

1,771
1,608
1,799

April
May
June

2,748
2,076
2,530

1,428
1,866
2-, 411

I l,300e
] l,200e
: l,200e
1

July
August
September

2,478
1,427
2,427

October
November'
December

1970
January
February
March

1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

1st half
Three quarters
Year

•

2,400e
l,9(30e
3,000e

7,360e

1970

• 1S69

1968

1,262
987
538

1,178
1,158
1,404

1,801
1,110
7.37

1,318
1,143
1,395

2,143
1,432
i
1,557 ,
j

1,097
808
559

1,469
1,699
1,444

1,960
2,388
2,940e

2,129
1,767
2,054

1,280
886
816

2,230
1,021
1,115

6,218
7,354
6,332
7,288e

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

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

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

13,522
19,904e
27,192e

10,882
16,015
21,965

6,435
8,899
11,881

7,956
12,008
16,574

f
1
1

•

°r 3,700e

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

Quarter
Quarter
Quarter
Quarter
'

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

GROSS PROCEEDS BY
TYPE OF ISSUE
COMMON
BONDS
AND
MEMO:
PFD.
PUBLICLY
PRIVATELY
ISSUES INCLUDED
PLACED
FOREIGN 1 CONVERTIBLE
OFFERED
STOCK

1968 - I V
1969 - I
II
III
IV e/

5,951
6,218
7,354
6,332
7,288

2,555
2,657
3,411
3,186
3,469

1 922
1 540
1 ,623
1 ,347
1 392

1,474
2,023
2,268
1,797
2,425

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

2,075
2,045
2,098
2,748
2,076 .
2,530
2,478
1,426
2,427
1,960
2,388
2,940
2,600

980
842
835
1,268
871
1,272
1,279
685
1,222
965
1,164
1,340
1,550

636
395
509
649
510
514
609
259
479
351
241
800
500

460
807
755
830
694
744
589
482
726
643
982
800
550

1

113
215
227
289
n.a.
103
74
38
62 : .
28
137
132
122
35
59
8
h. a.
n.a.

GROSS PROCEEDS BY
TYPE OF ISSUER

MFG.

PUBLIC
UTILITY




OTHER
ISSUERS 1

902
1,355
1,126
750
946

1,,712
1,407
1,,773
1;,862
1,,528

1 ,435
1 ,346
1 ,878
1 ,544
1,,868

319
473
432
.684
581

2,483
2,993
3,266
2,243
3,312

376
.578
401
430
463
233
214
167
369
105
316
300
330

403
513
491
513
569
691
875
362
625
270
458
800
900

627
315
404
784
392
702
493
507
544
745
623
500
650

186
56
231

860
1,161
972
1,405
915
946
826
433
984
826
1,106
1,380
925

,

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

\

COMMUNICATIONS

44

197
191
286
126
272
120
201
260
125

T X ABLE 6: Large Long-term-Public Security Issues for New Capital
(Other than U.S. T r e a s u r y ) 1

February 1 through February 27, 1970,
COUPON

AMOUNT
, (MILLIONS
\

ISSUER

Corporate
Philadelphia Electric Co.
Orange & Rockland Utilities
Company
Ashland Oil and Refining
Company
*Bulova Watch Company
San Diego Gas & Electric
Texas Power & Light Co.
General American Transportation Corp.
Hyatt Corporation
Duke Power Company
Gould Inc.
Textron Inc.
Michigan Bell Telephone Co.
Continental Mtge. Investors
Potomac Elec. & Pwr. Co.
Potomac Elec. Pwr. Co.
Gulf States Utilities
Guardian Mtg. Investors
Data Products Corp.
*Duke Power
Northern Natural Gas Co.
General Telephone of Fla.
Sherwin-Williams Co.
SCM Corporation




TYPE 'v

OF

MATURITY

DOLLARS)

RATI: OR
NKI 1..TERIST C O S T •

OFFERING
YIELD

MOOI-Y '
RA'L'IM.

1st & ref.

80.0

1995

9.00

8.78

Aaa

1st mtg.

20.0

2000

9.25

9.25

A

Debs.
Conv. debs.
1st mtg.
1st mtg.

75.0
20.9
40.0
30.0

2000
1990
2000
2000

8.80
6.00
8.75
8.63

8.80
6.00
8.68
8.53

A
Ba
Aa
Aaa

1990
1995

9.00
6.00

9.00
6.00

A
N.R.

1995
1975
2010
1990
2005

9.25
; 8.60
\8-5/8
6.20
8.85

9.25
8.60
8.55
6.20
8.85

A
A
Aaa
N.R.
A

2000
1985
1995
2000
1990
2000
1995
1990

8.50
8.00
5.75
8.50
8.75
8.63
6.25
9.20

8.40
8.00
5.75
8.43
8.75
8.65
9.25
9.25

Aa
N.R,
B
Aa
A
A

Equip, tr.
ctfs.
50.0
Conv. debs.
20.0
Com. stk.
62.2
S.F. debs.
25.0
Notes
50.0
Debs.
150.0
Conv. debs i.
80.0
1st mtg.
35.0
Pfd. stk.
30.0
1st mtg.
30.0
Conv. debs.
15.0
Conv. debs.
15.0
1st mtg. & ref. 75.0
S.F. debs.
50.0
1st mtg.
40.0
Conv. debs.
40.0
S.F. debs.
35.0

i

Baa

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

(continued) Fe bru a rv 1 throueh Febi
COUPON
1
|
' M 'I'T.R - MOODY'S
RATE OR
: RATING
MATURITY t NET INTEROF
| VILLI) Ii
j EST COST
DOLLARS)
—

AMOUNT
(MILLIONS
ISSUER

TYPE 2

State & local Government
G.O.
Connecticut, State of
Philadelphia, Pennsylvania G.O.
G.O.
New York, State
G.O#
Minneapolis, Minnesota
Minneapolis-St. Paul
Rev.
Airports Commission
Rev.
Los Angeles DEWAPS
Rev.
Clark Co., Nevada
Lackawanna River Basin
Rev. bds.
Swr. Authority
G.O.
Chicago, Illinois
Bergen Co. Swr. Auth.,
Rev.
New Jersey
Chicago City Jr. Coll.
G.O#
Dist., #508, Illinois
Rev.
Hawaii, State of
G.O.
Minnesota, State of
G.O. & Rev.
Forth Worth, Texas
Wyandotte Building Auth.,
Rev,
Michigan
G.O.
Wayne Co., Michigan
Wisconsin, State of
G.O.
G.O.
Pennsylvania, State of
Salt River Project Agricultural Imp. & Pwr. Dist
Arizona
G.O.
Broward Co. STSD #1, Fla. G.O.
Atlanta, Georgia
Rev.
Rutgers University, N.J.
Rev.
Lorain City Sch. Dist.
#246, Ohio
Puerto Rico Urban Renewal
and Housing Corp.
G.O.
Key West, Florida
Rev.




75.0
63.7
63.0
10.7

1971
1971-2000
1971-2000
1971-90

5.93
7.43,7.89,7.76
5.91
5.19,6.00

4.90-6.15
6,00-7.75
5.00-6.20
5.00-6.30

Aaa
Baa-'
Aa
Aaa

20.0
24.0
10.0

1973-99
1971-2000
1972-91

6.14
6.34
7.00

5.10-6;50
4.90-6.50
6.00-7.00

Aa
Aa

21.8
10.5

1977-1995
1982-84

6.06

6.00-7.00
6.40-6.50

A
A-l

20.7

1971-2008

7.13

5.20-7.10

A-l

15.0
20.0
50.0
12.6

1972-1978
1980-1995
1974-2003
1971-95

5,76
7.23
7.52
6.01,6.14

5.20-5.80
6.60-7.25
5.90-7.60
4.80-6.60

A-l

18.0
26.0
58.1
75.0

1974-2003
1970-2008
1971-2000
1972-99

7.52
5.98,7.29
5.69,5.98
5.92

5.90-7.60
5.40-7.30
5.40-7.30
4.80-6.35

A
A-l
A-l
A-l

36.0
25.0
17.5
13.6

1972-82
1971-88
1972-2000
1971-2005

5.72
6.04
6.38
7.00

4.85-6.40
4.90-6.40
4.90-6.60
6.30-7.10

A-l
A
A-l
A

14.0

1971-92

5.92

4.50-6.20

13.0
10.5

1996
1974-2005

6.78 '
7.25

6.78
5.70-7.20

—

--

A
Aa

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

(continued)
AMOUNT
(MILLIONS

OF
DOLLARS)

MATURITY

February 1 through February 27, 1970
COUPON
RATE OR
ITL-FKRMOODY1S
NET INTERII.(
RATING
EST COST
YIELD

Other
Federal
Federal
Federal
*Federal
Bank

Land Banks
Bonds
Home Loan Bank
Bonds
Home Loan Bank
Bonds
Itermed!ate Credit
Debs.

220.0
650.0
.50.0

1975
1971
1973

8-3/8
8.45
8.35

8-3/8
8.45
8.35

203.0

1973

8.15

8.15

Rights offering.
Includes corporate and other security offerings of $15 million and over;
State and local security offerings of $10 million and over.
In case of, State and local government securities, G.O. denotes genera I obligation;
kev.-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 forei gn government and International Bank for Reconstruc t ion 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

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

Corporate
1st mtg.
Kansas Gas & Elec. Co.
Notes
Fruehauf Finance Co.
Conv, debs.
Baxter Laboratories, Inc.
Conv. debs.
Itel Corporation
1st & Ref.
Pacific Gas & Elec. Co.
Aluminum Co. of Canada Ltd. Debs.
Conv. debs.
University Computing Co.
Notes
Chrysler Corporation
S.F. debs.
Chrysler Corporation
Debs.
C&P Telephone of Va.
Bonds
U.S. Lines Inc.
Sr. debs.
*Mack Financial Corp.
1st mtg.
Atlantic City Elec. Co.
Michigan Wisconsin Pipe
Bonds
Line
Bonds
Duquesne Light Co.
*Allegheny-Ludlum Steel
S.F. debs.
r Corporation
General Telephone Co. of
Bonds
Southwest
Public Service Elec. & Gas
1st mtg.
Company
1st & ref.
^Baltimore Gas & Elec. Co.
Conv. sub. debs.
*Hudson Leasing Corp.
Bonds
*Publie Service of Indiana
Debs.
.*Texas Gas Transmission
Bonds
Utah IVr. & Light Co.
Debs.
international Paper
Debs.
Crown Zellerback
Bonds
*Iowa Public Srv. Co.
Bonds
Montana Pwr. Co".
1st mtg.
*Iowa Public Srv. Co.
Debs.
*Pacific Tel. & Tel. Co.
Debs.
*RCA
Debs.
*Phelps-Dodge




March
March
March
March
March
March
March
March
March
March
March
March
.March

3
4
4
4
4
4
8
10
10
10
10
11
11

40.0
30.0

March
March

11
11

40.0

March

12

26.0

March

18

40.0
50.0
60.0
21.0
75.0
100.0
60.0
100.0
100.0
75.0
32.0
40.0
50.0 '

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

March 18
March 18
March 18
March 19
March 24
March ' 24
March 24
March 24
March 25
/March 25
March 25
March 31
March
March

•

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

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

State & Local Government
Cleveland, Ohio
G.O.
Charlotte, North Carolina
GiO.
Detroit, Michigan
G.O.
Detroit S/D, Michigan
G.O.
Maryland, State of
G.O.
Ohio, State of
G.O.
Alaska, State of
G.O.
South Carolina
G.O.
Virgin Islands Wtr. & Pwr.
Authority
Rev.
Gainesville, Florida
Rev.
Newark, New Jersey
G.O.
^Michigan, State of
G.O.
Pennsylvania State Public
School Bldg. Auth.
Rev.
*New York, State of
Rev.
Allegheny Co. P/A, Pa.
Rev.
Buffalo, New York
G.O.
Port of Seattle,Washington Rev.
*Baltimore, Maryland
G.O.
Los Angeles Dept. of Wtr.
and Pwr., California
Rev.
^Montgomery Co., Maryland
G.O.
Los Angeles Co,, Flood
Control, Dist., Calif.
Rev.




•

30.4
10.0.
13.4
18.0
45.2
50.0
11.5
30.0

March
March
March
March
March
March
March
March

2
3
3
3
3
3
4
10

20.0
19.0
20.5
36.0

March
March
March
March

11
12
17
17

30.6
75.0
25.0
17.5
23.0
35.0

March 17
March 17
March 18
' March 23
March 24
April
2

33.0
35.9

April
April

8
14

20.0

April

21

TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

Other
•Quebec Hydro-Elec. Coinm.
Tennessee Valley Auth.
Nova Scotia (Province of)

*
1
2

Debs.
Bonds
S.F. debs.

60.0

100.0
20.0

March
March
March

3
17
19

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.




TABLE 8: Stock Prices and Volume
STOCK PRICES
DATE
500
1967 - High
Low

IND.

TRADING VOLUME
AMEX

NYSE

AMEX

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

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

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

1968 - H i g h
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)

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)

90.92
89.07
85.02

782.60
775.61
744.06

26.55
26.31
25.46

52.2
52.5
55.3

21.1
20.1 .

6 86.33
13 86.54
20 88.03
27plZ89.50

752.77
753.34757.46
777.59

25.56
25.61
25.63
25.80

60.0

1970

Jan.

Feb.

•
1

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

D.J.

16
23
30

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

18.8

20.0
17.0
18.5
16.2
Highs and lows are
54.4
54.7
48.5

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.
1941-43
4

10.

Average dollar value of shares listed.




.15-.

STOCK PRICES AND TRADING VOLUME

D.J.
(Ind.)

Weekly
36

STOCK PRICES

1

'

•

J

11

1 1 1 1

1 " . M

| i i M

i > i i i i i

AMEX PRICE LEVEL I N D | X A / 1

-

28 -

/

S&P'S 5 0 0

•

.\YXYJ' \ Y

1200 120

—

1120 112

1040 104

-

-

20

4

—

y y W

12 —

v\

1.

D J. IND.

\

M V

—
—

1 1 Y^V

1280 128

-

24

16

960

96

880

88

800

80

720

72

Millions of shares
AMEX TRADING VOLUME (TOTAL FOR WEEK)

NYSE TRADING VOLUME (TOTAL FOR WEEK)

1966

1967




1968

1969

1970

S&P
(500)

17

TABLE 9: Security Credit
NET CREDIT

1
•ZS
KJ

i

END OF PERIOD

CREDIT EXTENDED TO
MARGIN CUSTOMERS BY:
TOTAL

CUSTOMERS'
NET DEBIT
BALANCES

CUSTOMERS' NET EXTENDI :D BY
BR0KF.RS 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

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

-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

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

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

1970 - Jan. p/

-250

-150

-400

-762

-177

-585

1

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.
2
"Bank loans to others than brokers and dealers for purchasing or carrying securities other than U.S. governments."
3
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 Sew 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.




T A B L E 10: Savings Flows at Nonbank Depositary Intermediaries

($ millions)

DATE

MUTUAL SAVINGS BANKS
N£T
REGULAR DEPOSITS 3
NEW
ANNUAL
MONEY2
GROWTH
NET
1
RATE
FLOW

1967
1968
1969 £/

5,082
4,208
2,452

1968 - Nov.
Dec.
1969 - Jan.

« 359
i 694
218

9.3
7.1
3.8

2,376
1,143
-747

• \

1969 - Nov.
Dec.
1970 - Jan. j>/

260
468
-100

SAVINGS i
St LOAN ASSOCIATIONS
1
SHARE CAPITAL
NET
ANNUAL .
NEW
.NET
GROWTH
MONEY2
FLOW
RATE 1
Not Seasonally Adjusted
10,649
9.4
6,129
, 7,399
6.0
2,676
4,024
3.1
-998
656
1,646
-92

——

--

293
-26
106

226
1,069
-1,404

• __

---

180
-237
-225

—
. ——

1969 - Aug.
Sept.
Oct.
Nov.
Dec. j>/

197
152
48
272
126

3.6
2.8
0.9
4.9
2.3

1970 - Jan. j>/

-103

-1.9

—-

--—.

9.4
6.3
3.3

8,505
3,819
-1,745

618
178
-130

1,015
2,340
126

„„

911
152
-24

207
-383
-1,465

486
1,537
-1,504

-- .
--

-741

—
--

-6.6

• NET
NEW
MONEY 2 ;

15,731
11,607
6,476

Seasonally Adjusted
225
2.0
446
4.0
-173
-1.5
265
2.4
47
0.4

—

TOTAL
DEPOSITS
ANNUAL '
NET
GROWTH
RATE 1
FLOW

——
——
—— •
__

--

-

397
-620
-1,690

'

422
598
-125
537
173

2.5
3.6
-0.8
3.2
1.0

--

-844

-5.0

—

1 , Annual growth rate for monthly data is the annualized monthly percentage increase in deposi ts.
2 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.
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.




J

i

SAVINGS FLOWS (seasonally adjusted)
Monthly

Millions of dollars

~ ~ 2000

1600
TOTAL

1200

800
400

400

1200
SAVINGS & LOANS

800
400

400

800
MUTUAL SAVINGS BANKS

400

400
1966

1967




1968

1969

1970

T A B L E 11: Mortgage Commitments at Selected Thrift Institutions

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

TOTAL,

1

NET CHANGE
ALL
SAVINGS &
LOAN
ASSOCIATIONS

MUTUAL
SAVINGS
. BANKS
(N.Y, STATE)

(Billions of Dollars, Seasonally Adjusted) \J

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

9.9
10.1
10.3
10.5
10.4
10.2
9.9
9.5
9.2
8.9
8.6
8.4

- Jan.

.

6.7
6.9
7.0
7.2
7.1
7.0
6.8
6.5
6.4
6.1
5.9
5.8
5.6

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
-. 19

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.




.07

.06

.06
.02

-.05
-.06

-.10

-.12
-.13
-.09
-.06
-. 13

MORTGAGE COMMITMENTS OUTSTANDING (seasonally adjusted)
Monthly

Billions of dollars

TOTAL

S&L'S

N.Y.-MSB'S

Includes building loans beginning August 1967

1960




1962

1964

1966

1968

1970

22
T A B L E 12: Net Change in Mortgage Holdings

DATE

TOTAL
INCLUDING
FNMA-GNMA

TOTAL

1

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

LIFE
INSURANCE
COMPANIES

FNMA-GNMA

Not Seasonally Adjusted
18,197
19,988
23,827
n.a.

15,874
18,191
21,319
n. a.

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

2,760
3,118
2,796
2,459

3,761
7,520
9,350
9,367

4,648
2,914
2,496
n.a.

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

1969 - Jan.

2,101

1,948

638

281

885

144

153

1969- - Oct.

1,795
1,636
n. a.

1,206
1,042
n.a.

300
300
200

158
151
248

608
450
r/533

140
141
n. a.

589
594
645

n. a.

n.a.

100

112

n. a.

604

207
159
194
169
183
173
193
191
171
139
n.a.

177
193
207
224
278
334
530
511
568
583
614

1966
1967
1968
1969

Nov.

Dec.
1970 - Jan.

n. a.

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

1970 - Jan.

1

2,202
2,099
2,117
2,032
2,153
1,698
1,910
1,876
1,734
1,652
n.a.
n. a.

2,025
1,906
1,910
1,808
1,875
1,364
1,380
1,365
1,166
1,069
n. a.

668
632
567
534
440
151
310
383
244
237
347

266
230
240
251
230
181
157
137
124
146
199

288

n. a.

884
875 ,
899 '
854
1,022
859
720
654
627
547
r/576
376

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 iti 1967.




NET CHANGE IN MORTGAGE HOLDINGS (seasonally adjusted)
Monthly

Billions of dollars

3.0

2.5
TOTAL, INCL. FN MA - GNMA

2.0

FINANCIAL INSTITUTIONS

1.0

1967




1968

1969

1970

T A B L E 13: Net Increases in Mor tgage Debt Outstanding

Billions of dollars, SAAR QUARTER

1966

1967

1968

1969

TOTAL

RESIDENTIAL

1- to 4- MULTIFAMILY
FAMILY

COMMERCIAL

MULTI-AND
COMMERCIAL

FARM

28.5
24.3
18.7
15.2

19.2
15.6
11.0
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

2:4
2.2
2.2
1.8

. - I£/ 15.6
20.5
IIP
.
I I I | > 27.0
IVp 27.5

13.8
19.6
19.9

10.0

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

27.1
25.9
26.5
iiij)
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

30.4
28.5
I I l j > 26.4
IVp 24.0

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

10.3
9.6
9.1
9.0

2.2
2.3
2.0
1.9

- l£/
II
III
IV

- !£/
HP

- I£/
Hp

,5.0
4.6
5.1

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

TOTAL

TOTAL
RESIDENTIAL

1-4 FAMILY

COMMERCIAL

MULTIFAMILY

0
1966




1968

1970

TABLE 14: FNMA "Auction" ResultsA

WEEK
ENDED
1970 - Jan.

5
12
19

¥
Feb.

Mar.

2
9
16
24
2
9

COMMITMENTS IN f MILLIONS
IMPLICIT YIELD 2 (per cent)
ACCEPTED
TOTAL
906l-YEARil
TOTAL
901-YEAR 1
6OFFERED
DAY
MONTH & OVER , DAY
& OVER
MONTH
704.7
637.8

8.4 • 70.4
8.7
81.8
CANCELLED
37.7 187.3

43.9
60.2

9.19
9.40

9.19
9.36

9.15
9.40

581.4

,122.7
150.7
AUCTION
297.8

72.8

9.37

9.29

9.26

497.0

295.3

41.2

188.0

66.1

9.23

9.28

9.15

438.1

279.9

52.7

150.4

76.8

9.20

9.25

9.13

(28O!O) 3/

\

Note: Under the FNMA auction system, approved sellers of Governmentunderwritten mortgages bid for FNMA forward purchase commitments, subject to an over-all dollar limit announced by FNMA in advance. Bids
accepted by FNMA are for delivery at the seller's option, and at any
time within the specified period. Bids on proposed homes relate to
construction not yet started on which mortgages may be delivered only
after completion and occupancy.
For "proposed construction" of new homes only.
Average secondary market yield after allowance for commitment fee and
required purchase and holding of FNMA stock, assuming prepayment of .
15 years for 30-year Government-underwritten mortgages. Yields shown
are gross, before deduction of 50 basis points fee paid by investors
to servicers.
3

FNMA announced limit of accepted bids for the next auction.




FNMA WEEKLY "AUCTION" RESULTS
$ Millions
AMOUNT OF ACCEPTED BIDS
BY COMMITMENT PERIOD
150

6 MONTHS

1 YEAR
AND OVER

50

| 3 MONTHS

1Z

IMPLICIT YIELD
6-MONTH COMMITMENTS

10

-

" T

y

8

' T ^ i

I

I

I

I

I

I

I

I

I

I

I

—

fv

TOTAL BIDS RECEIVED

f

\

r
|

|
JUNE

| TOTAL BIDS ACCEPTED
AUG.

OCT.

1969




DEC.

•-

•
i.I'
FEB.

i
APR.

:

'
i

I
JUNE
1970

I

i
' AUG.

i.

i
OCT.

i-

i
DEC

T A B L E 15: Private Housing Starts and Permits.

STARTS
UNADJUSTED
SEASONALLY A D J U S T E D
A N N U A L RATE
TOTAL|I1-FAMILY 2 OR MORE

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

TYP

OF FINANCING

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2

1,509

922

585

96.4 - 16.3

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

812
711
756
766
626
661
606
661
696
615
523
633

101.5.
14.2
90.0
13.2
131.9
18.9
159.0
23.0
.155.5
21.1
147.3 - 21.5
125.2
20.8
124.9
22.4
129.3
18.3
123.4
25.1
94.6
18.8
22.2
80.5

4.4

75.7

1,463

3.8
83.5
3.5
73.
3.9 109.1
4.4 131.6
4.3 130.1
4.6 121.2
4.7
99.7
4.2
98.3
4.8 106.2
5.0
93.3
3.9
71.9
4.2
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

1970 - Jan.
1,166
695
471
67.8
16.5
47.9
3.4
952
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 be-fore
footings are poured in some cases but normally after the foundations have been
completed. Other starts are derived as a residual, although total and FHA and
VA starts are not strictly comparable in concept or timing; other starts include both units financed by conventional mortgages and units without mortgages.
Building permits before January 1963 are Census estimates for about 10,000 areas
identified as having a local building permit system in 1959. Estimates beginning
January 1963 are for approximately 12,000 and beginning January 1967 13,000, or
all known permit-issuing places. Unlike starts,, seasonally adjusted building permits reflect direct adjustment for differences in the number of working days per
month, as well as other differences in timing and coverage.




PRIVATE HOUSING STARTS AND PERMITS
Monthly, annual rates

M i l l i o n s of u n i t s

SEASONALLY ADJUSTED
2.0

HOUSING STARTS,
1.6

1.2
BUILDING PERMITS
(in lnulng iraatj

#

PER CENT OF UNADJUSTED TOTAL STARTS

MULTI-FAMILY
(2 or more)

CHANGE IN SERIES

'
/*\ys.AA/"
•

GOVERNMENT UNDERWRITTEN
1

1
1964




1

' 1
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
5.43
6.73

T

Sept.
Oct.
Nov.
Dec.

1970 - Jan.

SPREAD BETWEEN YIELDS
ON CONV. &
FHA MORTGAGES

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

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

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

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

n. a.

n. a.

8.55

n.a.

1969 - Aug.
^

CONVENTIONAL
MORTGAGES .
3

1

n.a.

.

1

NEW
Aaa CORPORATE
BONDS
4

.

1.69
.77
1.16
1.28
.27
1.20
.26

5.25
4.41
5.82
6.51
5,18
6.79
6.15
7.65
7.98
7.89
8.32
8.75
8.46

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
• " AND
FHA MORTGAGES

.

.71
.42
.59
.16
-.13
n. a.-

Neither, mortgage nor bond yields include allowance for servicing costs which arc
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
rates.
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 -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

^

Percent

HOME MORTGAGES:
CONVENTIONAL

Aaa CORPORATE BONDS:
NEW ISSUES
•

Y I E L D SPREAD(FHA MORTGAGE VS. NEW ISSUE Aaa CORPORATE BONDS)

Basis Points

200

100

100
1962




1964

1966

1968

1970

32
TABLE 17: Conventional Mortgage Terms

DATE

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

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

1

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

LOAN
AMT.
($000)
4

1969 „
Jan. - 7 . 1 6
Feb.
7.26
Mar.
7.32
Apr.
7.47
May
7.50
June
7.62
July
7.76
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
2 4 . ,5
24. 3
24. 7
25. 0
24. 6
25. 0

7.18
7.28
7.35
7.46
7.54
7.64
7.79
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
72.6
22 . 9
72.8
23,. 0
72.7
23,, 0
71.8
22,, 7
71.9
22.,8
71.4
2 2 . ,8
71.7
22. 6 . 7 1 . 2
22. 2
70.7
22. 2
70.2
6
22.
70,4
22. 9
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

1.07

8.35

25.0

7.06

25. 1

8.13

0.94

8.29

22. 5

20.7

1970
Jan,

3.17

__7 0 . 6

.

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.




z

CONVENTIONAL MORTGAGE TERMS
Monthly

Years

-MATURITY
NEW
25

EXISTING

20

Iiiiiiiii I i i 1 i i i I I15i i i i ii
Per

80

LOAN/PRICE RATIO

NEW

75

EXISTING
70

65
Thousands of

LOAN AMOUNT
30

NEW

20
EXISTING

10

1964




1966

1968

1970
* CHANGE IN SERIES