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DEcoiiTBou.ro a m

sit "0BTHa

,

- . 5 . 8 Confidential (F.RQ

CtllAOHO

.

March 3, 1969

Oar^ mlkUi

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




.

TABLE 1: Yields, Volume arid Reception
CORPORATE BOND MARKET
VOLUME 2
i
PER CENT
GROSS
BONDS SCHEDULED
SOLD BY END
OF WEEK
WITHIN 28 DAYS
MOODY'S Aaa OFFERINGS

YIELDS
WEEK ENDING:
NEW ISSUE 1
- Jan. 3
. 10
17
24
31
1969 - Feb.

7 "
14
2(T
28

Mar.

7j>/

WEEK ENDING:

6.90
6.93
6.92
6.92

6.55
6.58
6.59
6.59
6.59

0
283
177
393
96

67
52
57
81

844
718
700
354
674

6.97 '
6.91
6.90
6.93

6.63
6.66
6.66
6.68

172
340
150
E/265

85
74
iocr
100

689
504
545
524

n.a.

n.a.

—

n.a.
n.a.
e/160
MUNICIPAL BOND MARKET
VOLUME'!
YIELDS
PER CENT
BONDS SCHEDULED
SOLD BY END
GROSS
MOODY'S
BOND BUYER
WITHIN [28 DAYS
OF WEEK
Aaa
20 BOND INDEX OFFERINGS

- Jan.

3
10
17
24
31

4.57
4.58
4.58
4.58
4.60

4.85
4.85
4.83
4.82
4.91

14
385
371
194
304

81
65
70
66
51

698
836
825
721
630

1969 - Feb.

7
14
20
28

4.72
4.72
4.70
4.80

4.96
4.96
4.95
5.04

200
71
341
£/340

69

720

77
v/ 76
51

645
510
A 48

n.a.
n.a.
n.a.
Mar. 7p>
n.a.
e/135
1 Derived by adjusting to an Aa$t 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.
n. a.-- Not available.




\

TABLE 2: Details on Inventories
DATE
OFFERED

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

AMOUNT
(MIL. $)

2/25

15.0

U.S. Shoe Corporation

7-1/8

7.20

A

10 yrs.

ESTIMATED PROPORTION SOLD
657=

X

DATE
OFFERED I RELEASED
2/25
2/25
2/11

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

2/28
2/28
2/24

6-7/8
7-1/4

6.92
7.15

+ 3
+ 6

Aa
Aa

7

7.00

+11

Aaa

INVENTORIES 1
MUNICIPALS
BLUE LIST
|
IN SYNDICATE

DATE
1969 - Jan.
Feb.

Bethlehem Steel
Gulf States Utilities
Chesapeake & Potomac
Telephone Company

31
7
14
20
' 28^/

N.C. - No call protection,

others as of Friday;



569
553
500
r/481
511

274
196
151
r/154
200e

10 yrs.
5 yrs.

10%
35%

5 yrs.

40%

CORPORATES
IN SYNDICATE
'

'

p Daily average of three days ended Wednesday.
in millions of dollars, e/ Estimated.

70
60
30
23
6e/

1

i Blue Li^t is daily average;

BONDS IN SYNDICATE
Millions of dollars

i—i

i i—i—i—r—i—i—r—r

CORPORATE BONDS IN SYNDICATE

200
100

i » .1 III
~r

i i I

r

i r i i T~n

MUNICIPAL BONDS IN SYNDICATE

i r

lliL
r—i—i—ni—i—i—i—i—i

r

r
300

200
100
_J
SEPT.

DEC.

•67




MAR.

JUN.

1968

SEPT.

DEC.

MAR.

I

L_J

'

JUN.

1969

L_l

I •I

SEPT.

. DEC.

J

/

TABLE 3: High Grade Bond Yields
NEW CORPORATE
MOODY'S SEASONED
• CORPORATE
ISSUES(ADJUSTED
Aaa 1
TO Aaa BASIS)

DATE

U.S. GOVERNMENT
20-YEAR
CONSTANT
MATURITIES.2

SEASONED
STATE AND LOCAL
GOVERNMENT
Aaa 3

1966 - High
Low

5.99(9/2)
4.82(1/7)

5.52(9/9)
4.73(1/7)

5.04(2/9)
4.50(1/21)

4.04(8/25)
3.39(1/10)

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)

4.15(12/28)
3.25(2/9)

1968 - High
Low

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

6.53(12/27)
5.95(9/13)

5.90(12/20)
5.18(8/9)

4.57(12/26)
3.80(8/8)

6.94
6.92
6.97
6.91
6.90
6.93/

6.59
6.59
6.63
6.66
6.66
6.68^

5.96
6.05
6.13
6.03
6.11
6.15

4.58
4.60
4.72
4.72
4.70
4.80

1969 - Jan.

24
, 31

Feb.

7

14
20
28 £ /
p
1
2
3

Preliminary.
Weekly average of daily figures. Average term of bonds included is 22-24 years.
Weekly average of daily figures.
Thursday figures. Only general obligation bonds are included; average term is 20
years.
SOURCE: 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 A i a

Aj /

\

MOODY'S
^
CORPORATE Aaa

U S. GOVT. 20-YR.
CONSTANT MATURITIES

MOODY'S MUNICIPAL Aaa

1965




1966

1967

1968

1969

TABLE 4: Long:term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
NEW CAPITAL
CORPORATE1

PERIOD
January
February
March

,

1,706
1*568
1,740

1,648
1,398
2,317

1,237
950e/
l,000e/

•

1

1,385
1,825
2,334

1,973
1,474
2,611

1,314,
1,140
• 1,396

1,111
1,229
1,497

2,091'
1,394
1,497

2,457
2^406
1,723

1,466
1,688
1,435

943
858
1,300

e/2,100
e/1,725
e/2,000

2,289
1,467
2,336

2,227
997
1,112

974
1,400
1,182

5,014
5,544
4,982
e/5,825

5,364
6,058
6,584
6,092

3,698
3,850
4,589
4,336

4,119
3,837
3,131
3,556

10,558
15,540
e/21,365

11,421
18,007
24,098

8,925
12,127
B/16,463

7,956
11,087
14,643

l,800e/

1

October
November
December
Quarter
Quarter •
Quarter
Quarter

1st half
Three quarters
Year

1st
2nd
3rd
4th

1969 p

l,800e/

July
August
September

-

1967

1,625c./

April
- May
June

1st
2nd
3rd
4th

1968p

1969p

.

Quarter
Quarter
Quartet
Quarter

Year
e
p
1
2
3,

5,225e/

STATE AND LOCAL 2

3,187 e/

1968r/

1967

1,138
1,156
1,394

1,482
1,196
1,438

Excluding finance companies 3
4,943
5,265
4,882

5,207
5,913
6,338
5,657
23,115

Estimated by Federal Reserve.
Preliminary.
Securities and Exchange Commission estimates of net proceeds.
Investment Bankers Association of America estimates of principal amounts;
Total new capital issues excluding offerings of sales and consumer finance
companies.
Note: Due to rounding components may not add.




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

QUARTER
OR
MONTH
1967 - Ill
IV
1968 - I
II
III
w

TOTAL
6,833
6,294
5,178
5,705
5,133
5,951

1968 - Jan.
1,771
1,607
Feb.
1,800
Mar.
1,428
Apr.
1,867
May
June
2,418
July
2,144
Aug.
1,433
Sept.
1,556
Oct.
i /2,129
Nov.
i /I,767
Dec.
i /2,055
1969 - Jan. e/ 1,860

GROSS PROCEEDS FOR NEW CAPITAL
AND REFUNDING
COMMON
MEMO:
AND
BONDS
ISSUES INCLUDED
PUBLICLY PRIVATELY PFD.
MFG.
STOCK
FOREIGN | CONVERTIBLE
OFFERED
PLACED
1,632
2,792
678
234
4,604
1,551
2,527
1,327
93
1,051
3,107
2,137
1,855
584
989
313
2,465
1,724
1,653
956
758
172
3,105
1,644
1,599
1,037
1,166
2,606
124
1,361
2,555
1,922
113
1,414
902 e /1»675
$03
796
766 ;
719
1,046
1,340
1,244
637
725
1,009
939
607
960

546
585
593
438
521
685
528
400
433
595
362
965
500

322
226
441
271
300
385
372
396
398
525
466
483
400

16
61
236
31
89
52
47
49
28
24
49
40

224
161
199
139
380
239
605
211
221
r/365
r/211
r/326

537
556
761
353
550
750
818
349
432
*/625
e/410
£/640
e/ 400

NET PROCEEDS
FOR NEW CAPITAL 1 2
COMMUNICATIONS

OTHER
ISSUES

595
269
411
529
483
e/305

1,976
2,040
1,356
2,159
1,758
e/2,460

186
417
546
147
78
431
178
189
103
549
237
474
236
236
438
92
469
155
e/665 elllO
3'410 £7i55
e/40
3/310
e/ 575 e/ 150

566
321
469
663
622
874
801
515
442

PUBLIC
UTILITY
1,219
1,255
1,394
1,201
1,143
e/1,385

e/700
e/750
*/l,010

p Preliminary, e Estimated by Federal Reserve. 1 Gross proceeds exceed net proceeds by the cost of
flotation. 2 For total see Table 4;
other issuers are extractive, railroad and other transporation,
real estate and finance, and commercial and other. SOURCE: Securities and Exchange Commission.
Quarterly supplements are available, r/ Revised.




e/675

'

,

' •

•

TABLE 6: Large Long4erm Public Security Issues for New Capital
(Other than U.S. Treasury)

ISSUER

' TYPE

AMOUNT
(MILLIONS
OF
DOLLAR j)

MATURITY

During February, 1969.
C0l)P0N
OFFER- MOODY'S
RATE OR
RATING
NET INTER. INC
YIELD
EST COST

Corporate
Duplan Corporation
^Surveyor Fund Inc.
; Kansas City Power & Light
Company
Duke Power Company
Philadelphia Electric Co.
Chesapeake & Potomac Tel.
Co. (Wash.)
Owens Corning Fibreglass
Manufacturers Bank of
Detroit
^Northern States Power
Tesoro Petroleum
International Leisure Corp
Forest Oil Corporation
Forest Oil Corporation
Pan American World Airways
PUlsbury ^Company
Southern Company
Instrument Systems Corp.
State Street Bank &
Trust Company
Del Monte Corporation
Atlantic City Electric Co.
New Jersey
Gulf States Utilities
Bethlehem Steel Corp.
U.S. Financial
Castle & Cooke, Inc.
*Walt Disney Productions
FRASER
UiS. Shoe Corporation

Digitized for


Conv. sub. debs.
Com. stki

15.0
29.2

1994

5.50

5.50

1st mtg. bds.
1st & ref. mtg.
bds.
Pfd. stk.

26.0

1999
if
1999

7-1/8

7.07

Aaa

7.00

7.06

Aaa

Debs.
S.F. debs.

50; 0
30. 0

2009 .
1994

7.00
6-7/8

7.06
6.92

Aaa
A

5.00

5.00

N. R.

5-1/4

5.25

5-1/2

5.50

B

5-1/4
4-3/4

5.25
4.75

Ba
Baa

6

6.00

B

75.0
40.0

Conv. cap. notes 15. 0 1994
Com. stk.
29. 2
Debs.
25. 0 1989
Units
25. 0
Conv. debs.
25; 0 1994
Com. stk.
16.,8 •
Conv. debs.
175..0 1989
Conv. debs.
20,.0 1989
Com. stk.
66,.0
Conv. sub. debs. 25..0 1977
Cap. notes.
Conv. debs.

20.0
30 .0

Com stk.
18 .6
1st mtg. bds.
25 .0
Debs.
100 .0
Conv. sub. debs. 15,.0
Conv. debs.
30,.0
50,.0
Conv. debs.
15 .0
Debs.

4

1994
1994

5.00 . 5.00
5-1/4
5.25

1999
1999
1989
1994
1994.
1994

7-1/4
6-7/8
5-1/2
5-3/8
5
7-1/8

Ba

7.15
6.93

Aa
Aa

5.37
5.00
7.20

Ba

—

.

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

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

COUPON
RATE OR
NET INTEREST COST

OFFERING
YIELD

MOODY 1 S
RATING

Corporate
Kaufman & Broad Inc.
Alco Standard Corp.

Com. stk.
Com. stk.

16,3
15.0

State & local Government
State of Connecticut
G.O.
State of Vermont
G.O.
Atlantic Co. Improvement
Authority, New Jersey
Rev.-Rent.
Kentucky Turnpike Auth.
Rev.
Kentucky Turnpike Auth,
Rev.
Tacoma, Washington
Rev.-Rent.
Grand River Dam Auth. ,Okla.Rev.
Grand River Dam Auth. ,0kla.Rev.
State of Maine
Bonds
Milwaukee Co., Wisconsin
G.O.
Puerto Rico Water Resources
Authority
Rew-Ut.
Los Angeles Dept. of
Water and Power
Rev. -Ut.
Fairfax Co., Virginia
G.O.
Genesee Co., Michigan
Bonds
Hawaii, State of
G.O.
Wisconsin State Agencies
Building Corporation
Rev.
Wisconsin State Agencies
Building Corporation
Rev.
Hpus ing Ass istance Admin. Bonds
Georgia Education Auth,
Rev.-Rent.




60.0
30.0

1970-89
1970-88

4.68
4.58

12.5
10.0
80.4
16.0
13.6
6.4
14.9
11.6

1971-98
1972-81
2008
4/
1972-2014—
2008 •
1971-92
1970-99
1970-89

n.a.
4.50-6.00
n.a.
4.50-5.25
n.a. . 4.50-5.25
5.71
4.40-5.80
5.92
4.50-5.80
5.92
4.50-5.80
4.57
3.90-5.35
4.59
3.90-4.75

Baa
Baa
Baa
N.R.
N.R.
Aaa
Aaa

30.0

1971-2000

5.41

4.25-5.40

A

21.0
17.2
10.0
30.0

1970-99
1970-94
1969-93
1972-89

5.04
5.16
5.04
5.09

4.00-5.20
4.20-5.75
3.90-5.10
4.25-5.20

Aa
Baa
Aa
A

20.5

1970-2003

5.30

4.00-5.30

Aa

35.6
137.3
13.2

1974-76
1969-2009
1970-94

4.73
5.14
5.05

4.50-4.60
3.80-5.25
4.00-5.30

Aa
Aaa
Aa

\

3.90-4.75
3.90-4.70

Aaa
"Aaa
——

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

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

COUPON
RATE OR
NET INTEREST COST

1969,
OFFERING
YIELD

MOODY'S
RATING

Other —^
Province of Ontario
Federal Home Loan Banks
Westcoast Production Co.,
Ltd.
Province of Nova Scotia
Home Oil Co., Ltd.
(Canada)
Federal Natlbnal Mortgage
Association

*
1
2
3

Debs.
Bonds.
Com. stk.
S.F. debs
Com. stk.
Debs.

75.0
200.0

1999
1971

19.2
25.0

1994

7-5/8

6-3/4

6.75

7.45
6.60

Aa

5.67

——

——

38.7
250.0

Rights offering.
n.a. Not available.
Includes corporate and other security offerings of $15 million and over;
State and local security offerings of $10 million and over.
Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues by Federal Agencies.
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 quas.i-utilities; Rev.-S.T.,
revenue bonds secured by revenue from specific taxes only; Rev.-Rent., revenue
bonds secured solely by lease payments.
Bonds maturing in 2013-14 not reoffered.


4


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)

1969.

APPROXIMATE DATE
OF OFFERING

Corporate
Sunshine Mining
Texas Electric Service Co.
Ohio Power Company
Ohio Power Company
Gulf Power Company
Teledyne Inc.
G.A.C.
*N. Y. Telephone Company
Talcott National Corporation
*Public Svc. Elec. & Gas Co.
F. & M. Schaefer Corporation
Alexander's Dept. Stores
G.S.I. Computer
Gamble-Skogmo, Inc.
Beneficial Finance
Integrated Container Service
Polaroid Corporation

Conv. sub. debs.
Bonds
Debs.
1st mtg. bds.
Bonds
Debs'.
Conv. debs.
Bonds
Conv. sub. debs.
1st & ref. mtg. bds.
Com. stk.
Com. stk.
Com. stk.
Cap. notes
Debs.
Com. stk.
Com. stk.

25.0
15.0
15.0
70.0
15.0
30.0
70.0
150.0
35.0
75.0
39.0
20.0
30.0
20.0
50.0
20.0
136.0

March 3
March 4
March 5
March 5
March 6
March 11
March 11
March 11
March 24
April 1
March
Indefinite
Indefinite
. Indefinite
Indefinite
.Indefinite
Indefinite (rts. exp:

State' & local Government
Phila. Sch. Dist., Pa.
Bonds
*N. Y. State Housing Finance
Agency
Bonds
MassT^Port Auth.
Rev.-rent.
Arlington Co., Va.
G.O.
Nashville & Davidson Co./fem, Rev.
*State of West Virginia
Bonds
California, State of
Bonds
^Illinois Building Auth.
Bonds
*The New Jersey Turnpike Auth. Rev.
King Co., Washington
G.O.
^Commonwealth of Pennsylvania Bonds
"Genesee Co., Michigan
Bonds
*San Francisco BART.
Bonds
Richmond Metro. Auth., Va.
Bonds
Cobb Co., Georgia
Rev.-Ut.




30.0

'

63.0
105.6
13.0
15.0
20.0
40.0
37.0
100.0
33.5 .
90.0
• 30.0
70.0
100.0
37.0

March 18
March 19
March
March
March
March . 4
March 5
March 11
March 12
March
April 8
April 10
April 10
Indefinite
Indefinite

TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury)as o f F e h r u a r y

ISSUER

TYPE.

AMOUNT
(MILLIONS
OF
DOLLARS)

28

, 1969.

APPROXIMATE DATE
OF OFFERING

Other —/
Neon Products of Canada
Ltd.
^Province of Manitoba

*
1

Conv. debs.
Debs.

20.0
50.0

March
March 11

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.
2
Includes foreign government and International Bank.for Reconstruction and
Development issues and non-guaranteed issues of Federal Agencies.
Postponed this week were: Albany Co. N. Y.'s $70 million issue--"market conditions";
Housing Assistance Administration's $11.3 million of its original $148 million offering
Alco Standard Corp. postponed $15 million of its original $30 million stock
offering Levin-Townsend also postponed its $35 million convertible offering due to
"market conditions."




TABLE 8: Stock Prices, and Volume
STOCK PRICES 1
500°

D.J. - IND.

TRADING VOLUME 2

, H
AMEX-

NYSE

.1966 - High
Low

94.06(2/9) 995.15(2/9)
73.02(10/7) 774.32(10/7)

17.00(4/21)
12.07(10/7)

10.74(4/15)
5i0(9/23)

6.1(4/15)
1.3(9/23)

1967 - High
Low

97.59(9/25) 943.08(9/25)
80.38(1/3) 786.41(1/3)

24.52(12/29)
13.78(1/27)

12.3(12/29)
6.9(1/6)

6.7(10/27)
2.1(1/6)

1968 - High
Low

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

33.25(12/20)
22.00(3/22)

17.1(7/12)
8.2(3/29)

9.2(5/31)
2.9(3/29)

1969 - Jan.-24
31

102.38
103.01

938.59
946.05

32.60
32.66

11.8
11.9

6.7
8.0

7 103.53
.14 103.61
20
99.79
28£, 98.13

947.85
951.95
916.65
905.21

32.60
32.56
30.94
29.98

12.8
11.8
r/11.4
10.7

6.6
5.9
r/5.8
4.6

Feb.

Preliminary.
Figuresexcept highs and lows are Friday's only. Highs and lows are for the
year and are not necessarily for Friday's.
Averages of daily trading volume On the New York and American Stock Exchanges.
Millions of shares.
1941-43 = 10
Based on actual dollar value, rather than a formula.




STOCK PRICES AND TRADING VOLUME
AM EX

Weekly

STOCK PRICES

AMEX PRICE LEVEL INDEX

AMEX TRADING VOLUME

NYSE TRADING VOLUME

1965




1966

1967

1968

1969

TABLE 9: Stock Market Credit

CREDIT EXTENDED TO CUSTOMERS BY:
BROKERS 1 | BANKS 2 | TOTAL
END OF PERIOD

CUSTOMERS1
NET DEBIT
BALANCES

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

Outstanding:

1968 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct,
Nov.'
Dec.
1969 - Jan.2/

1

6,170
6,150
6,190
6,430
6,640
6,690
6,500
6,460
6,390
6,250
6,200
6,200
5,910

2,430
• 2,420
2,370
2,350
2,360
2,410
2,420
2,490
2,520
2,560
2,630
2,710
2,750

8,600
8,570
8,560
8,780
9,000
9,100
8,920
8,950
8,910
8,810
8,830
8,910
8,660

7,797
7,419
7,248
7,701
8,268
8,728
8,860
8,489
8,724
8,859
8,994
9,876
9,169

2,942
2,778
2,692
2,979
3,064
3,293
3,269
2,984
3,126
3,406
3,422
3,717
3,597

4,855
4,641
4,556
4,722
5,204
5,435
5,591
5,505
5,590
5,543
5,572
6,159
5,572

-160
-30
-10
220
220
100
80
30
-40
100
20
. r/80
-250

151
378
-171
453
567
460
132
-371
235
135
135
782
-707

-179
-164
-86
287
85
229
-24
-285
142
280
16
295
-120

-328
-214
-85
166
482
231
156
-86
85
-47
29

Change in:
Outstanding
1968 - Jan.
. Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.2/
1
2
3

-130
-20
40
240
210
50
-190
-40
-70
-140
-50
-290

-30
-10
-50
-20
10
50
10
70
30
40
70
" 80
40

587
-587

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, r/ Revised.




•

\

• TABLE 10: Savings Flows at N on bank Depositary Intermediaries
($ millions)

\

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

DATE

TOTAL
SAVINGS i5c LOAN ASSOCIATIONS
NET <
DEPOSITS
. SHARE CAPITAL
NEW
ANNUAL
ANNUAL '
GROWTH
NET
GROWTH
MONEY 2 NET
1
RATE 1
FLOW
FLOW
RATE
•

1966
1967
1968 £/

2,591
5,079
4,158

.
4.9
9.3
7.0

1967 - Nov.
Dec.
1968 - Jan.

321
627
262

__

1968 - Nov.
Dec.
1969 - Jan. P/

359
674
200

__

1968 - Sept.
Oct.
Nov. '
. Dec.j)/

356
364
397
339

6.8
6.9
7.5
r/6.4

1969 - Jan.

199

3.7

——
--

1
\

1

NET ,
NEW
MONEY 2

' \\

Not Seasonally Ad iusted
227
2,376
1,139

3,656
10,686
7,333

273
-17
162

582
1,612
-251

293
-26
100

648
1,579
-73

3.3
9.1
5.9

__
—

•

-552
6,136
2,676

6,247
15)765
11,941

3.8
9. 2
6.3

552
157
-270

873
239
11

--

825
147
108

618
r/ 178
-114

1,007
2,253
127

--

911
r/152
-14

--

1,126
1,157
881
888

7.1
7.2
6.1
5.5

--

711

4.4

--

-325
8,512
3,815

Seasonally Adjusted

1
2
3

p

jj/

--

770 •
793
585
553

--

512

-———-

7.2
7.4
5.5
5.1
r/4.7

-——
--

'

-—
—-

.

--

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




-

SAVINGS FLOWS (seasonally adjusted)
Monthly

Millions of dollars

1200
800

400

SAVINGS & LOANS

800
400
MUTUAL SAVINGS BANKS

400
1965




1966

1967

1968

1969

TABLE 11: Mortgage Commitments at Selected Thrift Institutions

DATE

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

1967-Dec.
1968-Jan.
Feb.
Mar.
Apr.
May
June
July
Aug;
Sept.
Oct.
Nov.
.Dec o 2.1

1

8.5
8.4
8.5
8.6
8.8
8.6
8.6
8.6
9.0
9.1
9.5
9.8
9.8

,

TOTAL

1

NET CHANGE
ALL
SAVINGS &
LOAN ..
ASSOCIATIONS

MUTUAL
SAVINGS
BANKS
(N.Y. STATE)

(Billions of Dollars, Se«isonally Adjusted) 1/

5.9
5.8
5.9
6.1
6.2
6.1
6.0
6.1
6.2
6.2
6.5
6.6
6.7

/ .
2.6
2.6
2.5
2.5
2.5
2.6
2.6
2.7
2.9
2.9
3.0
3.2
3.1

'

-.04
-.05
.05
.18
.11
-.13
-.05
.19
.24
•U
.35
.27
.03

.03
.10
.16
.11
-.15
-.10
.11
.08
• 07

-

.22

.10
.12

Based on data from Federal Home Loan Bank Board.and Savings Bank Association
of
New York State. Net changes are derived directly from unrounded outstandings
levels as reported and after seasonal adjustment by Federal Reserve. Subtotalsmay not add to totals because of rounding.
"




-.07
-.05
-.05
.02
. 0
.02
.06
.08
.16
.04
.13
.17
-.10

'

MORTGAGE COMMITMENTS OUTSTANDING (saar)

Billions of dollars

Monthly




10

TOTAL

S&L'S

MSB'S

1961

1963

1965

1969

TABLE 12: Net Change in Mortgage Holdings 1
TOTAL
INCLUDING
FNMA

TOTAL

FINANCIAL INSTITUTIONS
SAVINGS
MUTUAL
&
COMMERCIAL
SAVINGS
LOANS
BANKS
BANKS

LIFE
INSURANCE
COMPANIES

4,761
6,365
6,469
6,303

4,813
6,431
6,403
5,947

823
1,749
1,805
1,322

965
946
1,072
1,078

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

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

5,413
5,671
3,953
3,088

4.618
5,120
3,445
2.619

975
1,656
1,300
774

753
513
739
715

1,671
1,674
350
86

1,219
1,277
1,056
1,044

2,623
4,8966,275
6,290

2,273
4,790
5,696
5,528

151
1,200
1,751
1,537

770
786
839
758

492
2,147
2,585
2,364

860
657
521
869

1,421
1,540
1,788 .
1,969
2,227
2,101
1,819
1,950
1,953
2,308
2,081
2,319

1,071
1,236
1,514
1,723
1,992
1,881
1,667
1,809
1,845
2,147
1,936
2,147

300
400
400
616
616
616
500
500
700
800
700
400

215
197
137
160
203
219
248
233
221
313
310
319

381
542
789
879
957
877
719
875
809
846
731
r/764

175
97
188
68
216
169
200
201
115
188
195
664

•

639

1 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 the Federal National Mortgage Association. Data for mutual savings banks and
for life insurance companies may differ somewhat from those derived from regular
quarter ly_ series because of minor conceptual differences for which adjustments are
not made in the monthly series.




NET CHANGE IN MORTGAGE HOLDINGS
Monthly

Billions of dollars

13.0

2.5

TOTAL, INCL FNMA

1.5

FINANCIAL INSTITUTIONS

1966




1967

1968

1.0

1965

QUARTER

TOTAL

I
II
: III
IV

25.5
25.3,
25.7
26.2

TABLE 13: Net Increases in Mortgage Debt Outstanding 1
("Seasonally Adjusted Annual Rate)
1- to 4- MULTIMULTI-AND
RESIDENTIAL
FAMILY
FAMILY COMMERCIAL
COMMERCIAL

18.6

15.1
15.1
15.5
15.8

3.5
3.5
3.8
3,8

4.2
4.5
4.4
4.6

, 8.0
8.3
7.9

2.2
2.4

14.7

4.3
3.3
2.3

6.1

7.0

11.7
9.4
7.7
5.6

2.2
2.1

7.3

1.8

29.1
23.6
17.7
14.6

19.0
15.3

12.1

9.2

8.3
7.2

1967 - I
II
II
LV

16.2

lilo

9.9
13.7
19.1
20.9

1968 - I
II .
;
II.
IV

27.7
26.0
25.7
284

1

^

2.2

18.5
19.3
19.6

1966 - I •
II
III
IV

20.3

FARM

10.6

18.2
18.5

18.0

n. a.

6.8
10.5
15.3
16.5
16.3
14.6
14.6
n.a.

2.0

5.1
4.0

3.1
3.3
3.8
4.4

3.8
4.8
4.8
5.1

2.0

6.3
5.3
5.5
n. a.

3.9
3.4
ri. a.

8.1

8.0

2.1

2.4

1.7
1.9
2.4

2.6
4.6
9.2
9.2

2.5
2.3
2.3
n. a.

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 nonfarm 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 de^t combinedi

E./ Preliminary.




NET INCREASES IN MORTGAGE DEBT OUTSTANDING
Quarterly

Billions of dollars, seasonally adjusted annual rate

. TOTAL

24
TOTAL
RESIDENTIAL

7 1-4 FAMILY

COMMERCIAL

MULTIFAMILY
1965




1967

1969

/
TABLE 14: FNMA Weekly "Auction" Results
COMMITMENTS
WEEKENDED

TOTAL'
OFFERED

IMPLICIT Y1ELD2/ (per cent)
IN $ MILLIONS
ACCEPTED
906901-1/
61MONTH Year&ov< :r DAY
MONTH
YE1AR & over
DAY

V

TOTAL

Dec. 2
9
• 16
23
30

119.9
105.1
93.7
123,3
104.4

57.9
56.1
56.6
56.3
62.4

17.5
18.4
15.1
15.3
20.4

25.8
23.5
32.6
31.6
32.3

14.6
14.1
8.9
9.4
9.8

7.43
7.47
7.52
7.55
7.61

7.46
7.51
7.57
7.60
7.65

7.35
7.42
7.46
7.48
7.49

Jan, 6
13
21
27

82.1
127.5
124.3
232.9

59.8
57.9
61.4
61.0

16.9
. 8.1
9.8
8.4

28.4
36.7
39.1
38.6

14.5
13.0
12.5
14.1

7.63
7.67
7.69
7.82

7.66
7.68
7.72
7.86

7.48
7.52
7.54
7.66

Feb. 3
10
17
24

320.6
285.7
226.7
167.2

80.0
'102.4
il00.9
100.1

5.3
6.8
6.9
11.2

35.9
46.2
38.4
48.7

38.8
49.4
55.6
40.1

7.98
8.01
8.04
8.09

7.99
8.05
8.09
8.14

7.82
7.91
7.95
8.00

Mar. 3
Note:

1(90.0) -

Under the FNylA auction system, approved sellers , of Governmentunderwritten mortgageis 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 in
15 years for 30-year Government-underwritten mortgages. Yields shown
are gross, before deduction of 50 basis point fee paid by investors to
servicers.

3

FNMA announced limit of accepted bids for next week's auctions




WEEKLY "AUCTION" RESULTS
.

AMOUNT OF ACCEPTED BIDS BY COMMITMENT PERIOD

*

lillions

120
100
80
60

6-MONTHS

40

20

1 YEAR
| 9 0 DAYS

• cent

IMPLICIT YIELD

8.0

6 - M O N T H COMMITMENTS

76

7.2

6.8
JUNE

AUGUST




1968

OCTOBER

DECEMBER

FEBRUARY

1969

APRIL

TABLE 15: Private housing starts and Permits
STARTS
DATE

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

SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE

1,456
1,537
1,511
1.591
1.364
1.365
1,531
1,518
1.592
1,570
1,733
1,492

912
1,075
920
922
838
790
904
867
944
965
r/905
r/917

544
462
591
669
526
575
627
651
648
605
r/828
r/575

TOTAL

UNADJUSTED
TYPE OF FINANCING
FHA | VA |. OTHER

80.5
13.9
84.6
17.0
126.6
19.6
162.0
22.6
140.9
20.5
137.9 - 19.8
139.8
18.8
136.6
20.9
134.3
18.6
140.8
21.4
17.5
r/127.1
r/ 95.5, r/16.3

63.2
3.4
63.5
4.1
102.4
4.5
5.4
134.0
5.5
114.9
5.0
113.1
4.9
116.2
4.8
110.9
4.6
111.1
5.3
114.0
4.2 r/105.4
4.4 I./74.8

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2

1,148
1,394
1,416
1,340
1,280
1,281
1.289
1.290
1,393
1,378
1,425
r/1,463

Jan.
1,816
1,028
788
98.7
14.1 3.8
80.8
1,352
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 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. Capehart military housing, units are excluded. 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 con- :
ventional mortgages and units without mortgages.
Building permits before January 1963 are Census estimates for about 10,000 areas 'i
identif ied as having a local building permit system in 1959. Estimates beginning J
January 1963, are for approximately 12,000 and beginning January 1967 13,000, or |
all known permit-issuing places. Unlike starts, seasonally adjusted building per?
mits reflect direct adjustment for differences in the number of working days per f
month, as well as other differences in timing and coverage.
.2
r

Revised.
Preliminary.




5

PRIVATE HOUSING STARTS AND PERMITS
Monthly, annual rates

Millions of units

SEASONALLY ADJUSTED DATA

2.0

1.6
HOUSING STARTS

1.2

BUILDING PERMITS
(in issuing areas)

PER CENT OF UNADJUSTED TOTAL STARTS
MULTI-FAMILY

40

(3 or more)

GOVERNMENT UNDERWRITTEN
1963




1965

1967

1969

TABLE 16: Mortgage andSond Yields
FHA
MORTGAGES

2

• DATE
25-YEAR 30-YEAR
1957 - High
1958 - Low
1969-60 - High
1 9 6 1 - 6 6 - Low
1966 - High
1967 - High
Low
1968 - High
Low

1968 - Sept.
Oct.
Nov.
Dec.
1969 - Jan.
1

2

3

4
5

5.63
5.35
6.24
5.43
6.73

n.a.

n.a.
n. a.
n. a.
| n.a.

n.a.
n. a.
n. a.
5.44
6.81
6.81
6.29
7.52
6 . 78

-7.28
7.29
7.36
7.50
--

CONVENTIONAL
MORTGAGES
3
6.00
5.55
6.30
5.80
6.70
6.65
6.40
7.30
6.75

7.30
7.25
7.30
7.40
7.55

NEW
Aaa CORPORATE
BONDS
5

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES

.47
.15
.23
.25
.30
.11
-.12
.02
-.27

4.94
3.65
. 5.25
4.41
5.82
. 6. 51
5.18
6.79
6.15

1.58
. 88
1.69
.77
1.16
1.28
.27
1.20
.26

.02
-.04
-.06
• - .10

6.27
6.47
6.61
6.79
6.92

1.01
.82
-75
.71

• SPREAD BETWEEN YIELDS
ON CONV. &
FHA MORTGAGES 4
"

^

1

Neither mortgage nor bond yields take into account servicing costs which are
much higher for mortgages than 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.
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 b y probable volume of transactions. Yields
computed by FHA,, assuming prepayment period of 12 years for 25-year mortgages
and 15 years for 30-year mortgages. Over the period for which they can be
compared, the movement of the two mortgage yield-series has been similar.
Dashed lines indicate periods of adjustment to changes in contractual interest
rates.
.
Based on FHA-field-office opinion on typical interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring office
cities. Beginning with April 1960, rate relates only to new-home mortgages;
prior to that date, rate related to both new as well as existing-home mort- gages. Dashed line indicates this change in the series.
FHA mortgage yield data are for 25-year mortgages through June 1961; 30-year
mortgages thereafter.
See note for Table I.(Data prior to 1965 is based on a composite of issues with
and without call protection.) n.a. Not available.




»
|
1
1

- !

:

31

MORTGAGE AND BOND YIELDS
Monthly

HOME MORTGAGES:
CONVENTIONAL

FHA

Aaa CORPORATE BONDS:
NEW ISSUES

1961




1963

1965

1967

1969

TABLE 17: Conventional Mortgage Terms

DATE

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

1

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

&
LOAN i
AMT. *'
($000,

1968

Mar.
June

r/25.9
7.16

0.84

72.9
74.5
74.3
73.4
73.2
74.4
73.7
73.6
74.2
74.5
74.1
7<0

r/21.5
r/21.9
r/22.2
r/21.9
r/21.7
r/22.3
r/22.2
r/22.6
r/22.1
r/22.7
r/22.5
r/24.7

6.97
7.10
7.12
7.11
7.09
7,07
7.09

73.6 r / 2 4 . 1

7.17

6.57
6.58
6.59
6.64

6.81

0.82
0.81
0.79

0.80
0.87

0.86

0.83
0.85

6.70
6.71
6.72
6.77
6.95
7.12
7.23

22.7
22.6
23.0
. 22.6
22.5

22.6

0.85

7.25
7.22
7.21
7.23

22.5
22.7
22.6
22.5
22.7
r/23.3

.0.84

7.31

22.9

0.82

0.84

0.82

7.26

73.7
73.6
73.3
72.8
73.1
73.1
72.6
73.0
72.6
72.4
72.9
73.2

r/18.0 :
r/17.9
r/18.3 '
r/18.1.
r/18.3 '
r/18.2,f
r/18.5£
r/l8.6<>
r/18.3r/18.3"
r/18.9<fj
r/20.4"

72.7 r / 2 0 . 2 j

r
1

Revised.
p Preliminary
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--in this exhibit—permanent loans which are coupled with construction
loans to owner-builders. Data prior to 1965 on a comparable basis with the new series
• are pending. Related series on conventional mortgage rates only, based on unweighted
opinions of regional-office directors of the Federal Housing Administration, are available somewhat sooner than the results of the FHLBB-FDIC survey, and are included-in the
case of new home mortgage rates--in Table 16. -

2

Fees and charges--expressed as a percentage of the principal mortgage amount—include
loan commissions, fees, discounts, and other- charges which provide added income to the
lender and are paid by the borrower. They exclude any closing costs related solely to
transfer of property ownership.

3

Includes fees & charges amortized over a 10 year period in addition to the contract
interest rate.




CONVENTIONAL MORTGAGE TERMS
Monthly

Years

30
MATURITY
NEW
25

EXISTING

20

80

LOAN/PRICE RATIO

NEW

EXISTING
70

1963




1965

1967

1969