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"AFTER SIX
L.5.6 Confidential (F.R.)

May 17^ 1971

>d?

• •

•

LUP nr\cM£/

APITAL
MARKET
DEVELOPMENTS

g n g S X - S S t t S r Y a . ' •=




INDEX
3-5

Developments in the Corporate and Municipal Bond Markets

6-7

Capital Market Yields

8-13

Capital Market Volume

14-17

Stock Market

18-33

Mortgage Market

SYMBOLS:
e

Estimate

p

Preliminary

r

Revised

n.a.

Not available




/

TABLE 1: Yields, Volume and Reception
YIELDS
MOODY'S
SEASONED
NEW ISSUE 1
Aaa

WEEK ENDING:

1971 - Apr. 22
9
16
23
30
May

7
14
21

1971 - Apr.

May

7.15
7.16
7.32
7.54
7.81

7.22
7.23
7.24
7.24
7.30

608
322
289
897
327

67
79
78
93
85

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

"X7.88
7\93

7.43
7.48

610
374
550e

85
85
n.a.

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

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

WEEK ENDING:

CORPORATE BOND MARKET
VOLUME 2
PER CENT
GROSS
SOLD BY END
BONDS SCHEDULED
OFFERINGS
OF WEEK
WITHIN 28 D A Y S /

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

2
9
16
23
30

5.00
5.10
5.20
5.30
5.50

5.15
5.21
5.32
5.48
5.69

318
569
507
414
311

69
61
85
67
70

7
14
21

5.65
5.80

5.84
5.96
n.a.

280
550
739e

....

84
81

BONDS SCHEDULED
WITHIN 28 DAYS
1,164
1,136
743
884
1,443
n.a.

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




/

TABLE 2: Details on Inventories
DATE
_OFFERED

i
|

.

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

AMOUNT
(MIL. $)

5/12

Trans. World Air
So. New Eng. Tel.
Miss. Pwr.
Avco Fin. Svces.:

55.0
110.0
15.0
50.0

5/11
5/5
4/27

OFFERED

DATE
1 RELEXSED
5/12
5/13
5/13
5/13
5/11

5/4
5/3
5/5
4/22
4/21

11.00
8.13
8.38
8.88

11.00
8.00
8.30
9.00

Baa
Aa
A

N.C.
5 yrs.
5 yrs.
5 yrs.

ESTIMATED PROPORTION SOLD
\

V

95
50
40
70

';

'

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

AMOUNT
50.0
16.0
8.0
18.0
18.0

Northern Ind. Public Serv.
Otter Tail Power
Community Pub. Serv.
Md. Fuel Supply
Northwest Nat. Gas

8-1/8
8.75
8.50
8.50
8-5/8

7.95
8.60
8.35
8.50
8.63

+11
+ 8
+20
+14
+31

Aa
Baa
A
A
Baa

5
5
5
5
5

30%
60%
70%
50%
15%

INVENTORIES '
MUNICIPALS

DATE
1971 - Apr.

May

IN SYNDICATE

CORPORATES
IN SYNDICATE

16

866

202

58

23
30
7
14

794
756

128

666

251
197
125

625

166

82

48
90

N.C. - No call protection.
l
All figures in millions of dollars. Blue List is daily average for week ended Friday,except for latest week
rh.re*. days _ended Wednesday. All other figures are as of Friday.

 is daily averat>e.,of
which


5

TABLE 3: High Grade Bond Yields

DATE

NEW
CORPORATE
Aaa1

MOODY'S SEASONED
CORPORATE
Aaa 2

U.S. GOVERNMENT
20-YEAR
CONSTANT
MATURITIES 3

BOND
BUYER'S
SEASONED
MUNICIPALS 4

1969 - High
Low

8. 85
6. 90

(12/5)
(2/21)

7.84
6.55

(12/26)
(1/12)

6.97
5.96

(12/26)
(1/24)

6. 90
4.82

(12/18)
(1/28)

1970 - H i g h
Low

9. 30
7. 68

(6/19)
(12/18)

8.60
7.48

(7/3)
(12/31)

7.55
6.17

(5/29)
(12/18)

,12
7.
,33
5.

(5/29)
(12/11)

1971 - High
Low

7.
.93
6.
.76

(5/14)
(1/29)

7.48
7.06

(5/14)
(2/12)

6.39
5.69

(1/4)
(3/23)

5. 96
.00
5.

(5/13)
(3/18)

May

16
23
30

.32
7,
.54
7,
.81
7,

7.24
, 7.24
7.30

7
14

1971 - April

7 .88
7 .93

7.43
7.48

1

5.96
6.10
6.11

.32
5,
5,
.48
5 .69

6.25r/
6.33a/

c .84
.96

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 scries.
t




6
TABLE 4: Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
GROSS PROCEEDS
CORPORATE 1

PERIOD

1970

STATE AND LOCAL 2
1969

1

1971

1970

1969

January
February
March

3,115
3,000
6,075

2,636
1,802
3,539

2,075
2,045
2,098

1
j
!

2,702
1,833
2,107

1,340
1,214
1,555

1,262
987
538

:

April
May
June

3,910e

3,170
3,909
3,389

2,748
2,076
2,530

|

1,850e

1,647
996
1,085

1,801
1,110
737

j
L
j

2,768
2,274
3,518

2,478
1,427
2,427

1,348
1,359
1,758

1,097
808
559

L
*
>

3,777
4,182
3,980

1,933
2,375
2,532

1,924
1,748
2,190

1,280
886
816

f
'

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

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

4,109
3,728
4,465
5,862

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

J
J
|
>
i

18,445
27,005
38,944

13,572
19,904
26,744

6,435
7,837
12,302
18,164 ' if,ill

1

1971

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

Quarter
Quarter
Quarter
Quarter

12,190

1st half
Three quarters
Year

Excluding finance companies
1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

j
i
1

6,642

6,170
7,037
-

Year
1
2
3

Securities and Exchange Commission estimates of gross proceeds.
Investment Bankers Association of America estimates of principal amounts.
Total gross proceeds excluding offerings of sales and consumer finance
companies.




I

3

1
'

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
AND
MEMO:
BONDS
)
ISSUES INCLUDED
PUBLICLY PRIVATELY PFD.
MFG.
STOCK
FOREIGN | CONVERTIBLE
PLACED
OFFERED
2,445
2,314
3,169
3,794

2,812
2,714
3,406

2,,162
868
,346
1,

3,048
2,663
4,020

3,197

1 ,606

3,594

399
436
320
205
389
304
283
834

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

89
20
26
68
11
4
56
11
159

398
230
82
107
59
121
388
184
165

689
817
939
638
682
994
1,006
1,107
1,056

1,109
600
1,103
843
630
1,241
1,101
1,350
955

62
1 ,747
353
144
279
445
371
693
282

1,310
744
994
1,143
682
838
1,300
1,033
1,687

2,033
2,201
4,135

594
275
647

489
524
1,293

43
3
38

99
168
557

716
661
2,417

676
1,069
1,452

391
683
532

1,332
587
1,675

2,160

450

1,300

n.a.

390

1,390

860

340

872

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

1971 - Jan.
Feb.
Mar.

3,115
3,000
6,075

e/Apr.

1

OTHER
ISSUERS 1

710
287
737
824

3,170
3,909
3,389
2,768
2,274
3,518
3,777
4,181
3,979

3,910

July
Aug.
Sept.
Oct.
Nov.
Dec.

COMMUNICATIONS

135
83
226
84

6,994
5,987
7,827
8,369

1970 - Apr.
May

PUBLIC
UTILITY

2,190
1,659
2,690
2,306

10,468
8,560
11,907
12,190

1970 - II
III
IV
1971 - I

GROSS PROCEEDS BY
TYPE OF ISSUER

1,282
914
1,421
1,516

l
\

447

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.




/
•

•'

.

•

V

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

ISSUER
Corporates
Otter Tail Pwr. Co.
Northern Ind. Pub. Serv. Co.
Midland Enterprises Inc.
National Can Corp.
G.M.A.C.
Wis. Pub. Serv. Corp.
Mississippi Pwr. Co.
Westinghouse Credit Corp.
Gen'l Tel. of S.E.
Boston Edison Co.
Kansas Gas & Elec. Co.
Hartford National Corp.
T.W.A.
Black and Decker
Southern New England Tel.
Chrysler Financial Corp.
Nabisco




TYPE2

AMOUNT
(MILLIONS
OF
DOLLARS)

1st. Mtg.
16.0
1st. Mtg.
50.0
Bds.
15.0
Debs.
20.0
Debs.
200.0
1st Mtg.
25.0
1st. Mtg.
15.0
Notes(7 yr.) 75.0
1st. Mtg.
25.0
1st. Mtg.
75.0
1st. Mtg.
35.0
S.F. debsi.
25.0
Std. Loan
Certf.
53.6
Com. Stk.
24.5
Debs.
110.0
Sub. Debs.
90.0
S.F. debs.
50.0

May 3, thru May 14 . 1971
COUPON
MOODY'S
OFFERRATE OR
RATING
NET INTERING
EST COST
YIELD

MATURITY

2001
2001
1991
1996
1993
2001
2001
1978
2001
2001
2001
1996

8-3/4
8-1/8
8-7/8
8-3/8
8.00
8-1/4
8-3/8
7.20
8-3/4
8-1/8
8.13
. 8.50

"
'

11.00

Baa

—

——

Baa
Aa t
Baa
Baa

11.00

1986
2008
1986
2001

8.60
7.95
8.93
8.42
8.10
8.20
8.30
7.20
8.79
8.00
8.04
8.50

—

8.13
7.38
7.75

8.00
7.38
7.75

——

A
A
m—
Baa
Aa
——

• —

Aa
--

Aa

9

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

State and Local
Van Dyke Pub. Sch. Dist., Mich.
Mass. Health & Ed. Fac. Auth.
Detroit, Mich.
Wash. Suburban Sanitary Dist. Md.
*St. Clair Co. Bldg. Comm. 111.
Sacramento, Calif. Municipal
Utility Dist.
1
Erie Co. Water Authority
Puerto Rico Highway Auth.
Florida, State of
Florida, State of
Florida, State of
North Shore Sanitary Dist. of
Lake Co., 111.
Minn-St. Paul Metro Area, Minn.
Chicago Park, 111.
Texas
Connecticut
New York State Finance Agency
Other

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

2

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

13.5
12.0
11.5
20.0
10. 0

Rev.
Rev.
Rev.
Rev. ;
Rev.
Rev.

40.0
11.8
60.0
12.5
13.9
-44.1
27.0
14.0
12.0
30.0
100.0
156.0

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

^

pp
oo

ISSUER

MATURITY

COUPON
RATE OR
NET INTEREST COST

MOODY'S
RATING

6.05

3.25-6.40
4.00-5.75
3.50-7.40
3.20-6.15
4.00-6.40

1972-2001
1972-2001
1995
i
1974-88
j
2008

6.11
6.12
6.74
5.93
5.93
5.93

3.50-5.70
3.25-6.30
3.60-6.60
5.71
3.50-5.40
6.02

Aa
A

1974-88
1973-1990
1972-81
1979-87&98
1972-91
1972-2001

7.76
5.13
4.67
4.50
5.05
6.62

3.75-6.00
3.20-5.90
3.20-5.00
4.40-5.00
3.10-5.60
3.50-6.75

A
Aa :
A-l
Aaa
Aaa
A

1972-2000
1972-1981
1972-1986
1972-2001
--

'

--

6.25
5.61
6.44

OFFERING
YIELD

—

Baa
A
A

Aa
Aa
Aa

--

!mflf?aRiis?ntss° Administration
Be6i,
V.SL
.
* tfights1 offering.
x\
1
Includes corporate and other security offerings of $15 million and over;
State and local security offerings of $10 million and over.
2
In case of State and local government securities» G.O.X denotes gem-ral obligation;
'<ev.-Ut., revenue obligations secured only by income from public utilities;
Rev. -Q.-Ut., revenue bonds secured only by income from quasi-utilities; Rvv.-S.T.,
revenue bonds secured by revenue from specific taxes only; Rev.-Rent., revenue
bonds secured solely by lease payments.
3
Includes foreign government and International Bank for Reconstruction and
Development issues and non-quaranteed issues by Federal Agencies.




10
TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury) 1
(continued)

ISSUER

TYPE

A5 o f May 1 4 , 1971

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

Corporates
United Jersey Banks
Chase Manhattan Corp.
Connecticut Gen'1 Mtg. &
Realty Investment
Southwestern Pub. Serv. Co.
Southwestern Elec. pwr. Co.
Monongahela Power
Grolier Inc.
Gen'l Tel. Calif.
Atlantic Bancorp
Consolidated Nat. Gas Co.
Pub. Service Elec. & Gas Co.
Armstrong Cork Co.
Broadway-Hale Stores -TScT.
Quaker Oats Co.
First Empire State Corp.
New England Tel. & Tel. Co.
Northern States Pwr. Co.
Sparry Rand Corp.
Texaco Inc.
National Can Corp.
Union Tank Car Co.
Mass. Mutual Life Ins. Co.
Dennison Manufacturing Co.
Kentucky Utilities Co.
Kentucky Utilities Co.
Texas Gas Trans. Corp.
Jersey Central Pwr. & Lt.
Rep. Nat'1 Bk. of Dallas
Occidental Petroleum Corp.
Dayton Pwr. & Lt. Co.
Dayton Pwr. & Lt. Co.
Gen'l Tel. Co. of the S.E.
Central Tel. & Utility Corp.
Microdot Inc.
Beneficial Corp.
Monumental Corp.
Interlake Inc.
Beneficial Corp.
Kansas City Pwr. & Lt. Co.
Northern Nat. Gas Co.
Western Electric




Debs.
Conv. debs.
Debs.
1st. Mtg.
Bds.
1st. Mtg.
S.F. debs.
Debs.
Debs.
Debs.
1st. Mtg.
S.F. debs.
S.F. debs.
Debs.
Notes
Debs.
1st. Mtg.
Debs.
Debs.
Debs.
Squip Trst. Ctfs.
3om. Stk.
Debs.
1st. Mtg.
Squity Sec.
Debs.
)ebs.
Prom. Notes
Debs.^
?ref. Stk.
1st. Mtg.
Ids.
1st. Mtg.
totes
ids.
totes
Debs.
Ids.
1st. Mtg.
)ebs.
!)ebs.

20.0
200.0
75.0
15.0
25.0

20.0
40.0
50.0

20.0

40.0
70.0
75.0
35.0
50.0
25.0

200.0
50.0

160.0
200.0
20.0
25.0

100.0
20.0
35.0
15.0
30.0

21.0
35.0

100.0
20.0
45.0
40.0

20.0
20.0
50.0

20.0
60.0
25.0
27.0

60.0
100.0

May 17
May 17
May
May
May
May
May
May
May
May
- May
May
May
May
May
May
May
May
May
May
May

17
17
17
17
18
18
19
19
19
20
25
25
25
25
26
27

May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
June 3
June 8
June 8

11
TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury)'

ISSUER
Corporates (cont*d)
Georgia Pwr. Co.
Ohio Edison
Michigan Bell Tel. Co.
West Penn. Pwr.
American Century Mtge. Inves.
State and Local
Illinois
Dade Co. Port Auth., Fla.
King Co., Wash.
-Louisiana Stadium & Expo. Dist.
West Virginia, State of
New Jersey Turnpike
Mukilteo Wash. S/D # 6
Fairfax Co., Va.
New Orleans
Austin, Texas
Nassau Co., N.Y.
Ohio, State of
Michigan, State of
Port of Seattle Wash.
New York St. Dorm. Auth.
Phoenix,Arizona
Penna. State of
Lower Col. River Auth., Texas
Cleveland City Sch. Dist.
Oakland Co., Mich.
San Bernardino. Calif. Redevp.

AMOUNT
(MILLIONS
OF
DOLLARS)

TYPE

100.0
60.0
150.0
40.0
25.0

1st. Mtg.
1st. Mtg.
Bds.
1st. Mtg.
Conv . debs.
G.O.
Rev.
G.O.
Rev.
G.O.
Rev.
Bds.
G.O.
Rev. & G.O.
Rev.
G.O.
G.O.
G.O.
Rev.
G.O.
Rev.
G.O.
G.O.
G.O.
G.O.

.

100.0
24.8
10.4
113.0
45.0
125.0
10.0
30.0
15.8
13.0
48.0
75.0
57.5
29.0
20.3
19.0
100.0
60.0
16.0
13.3

As of May 1 4 , 1 9 7 1
APPROXIMATE DATE
OF OFFERING

June
June
June
June
June
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May

10
15
21
23

17
18
18
18
18
19
19
19
19
20
20
20
25
25
25
25
26
26

May
13.5
Bds.
June - 2
100.0
Pollution Bds
Illinois
June 29
10.0
G.O.
Mecklenburg Co., N. C.
July 1
29.7
G.O.
Allegheny Co., Pa.
Aug. 11
39.0
Los Angeles Dept. of Wtr. & Pwr. Rev.
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.




12

Table 8

STOCK PRICES AND VOLUME
STOCK PRICES1-

TRADING VOLUME 2 '

DATE
NYSE INDEX 3 -

D J . INDUSTRIALS

AMEX

NYSE

AMEX *

1969 - High
Low

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

16.5 (3/29)
968.85(5/14) 32.91 (1/3)
769.93(12/17) 25.02 (7/29) 8.6 (8/29)

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

1970 - High
Low

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

18.5 (12/4)
842.00(12/29) 27.02 (1/8)
631.16(5/26) 19.36 (5/27) 7.8 (8/14)

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

1971 - High
Low

57.76 (4/28)
49.73 (1/4)

950.82(4/28)
830.57(1/4)

26.68 (4/28) 22.1 (2/12)
22.72 (1/4)
14.9 (4/2)

6.7 (2/12)
4.3 (1/8)

2
9
16
23
30

55.58
56.33
57.06
57.32
57.27

903.04
920.39
940.21
947.79
941.75

26.20
26.41
26.49
26.51
26.47

14.9
19.0
20.6
18.4
20.6

5.0
5.6
5.8
5.1
5.3

7
14

56.67
56.35

936.97
936.06

26.24
26.15

17.2
16.0

4.7
4.8

1971 - Apr.

May

NOTES:
1.

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

2.

NYSE is the New York Stock Exchange; AMEX is the American Stock Exchange.
Volume figures are daily averaged for the entire week,
(millions of shares).
Trading is normally conducted for 5-1/2 hours per day and 5 days per week, or
In recent years, however abbreviated trading to the extent, and over the time
Hours/
Days/
From
Through:
Day
Week
January 3, 19^9
July 7, 1969
January 2, 1970

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

3.

12/31/65 = 5 0

4.

Average dollar value of shares listed.




4
4-1/2
5

5
5
5

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

13

TABLE 9: Security Credit
!

END OF PERIOD

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

CUSTOMERS'
NET DEBIT
BALANCES

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

Outstanding:
4,520

2 ,370

6,890

6,353

Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

4,360
4,160
3,860
3,800
3,810
3,920
4,010
4,010
4,030

2 ,330
2 ,290
2 ,290
2 ,290
2 ,300
2 ,330
2 ,270
2 ,320
2 ,330

6,690
6,450
6,150
6,090
6,110
6,250/
6,280
6,330
6,360

5,985
5,433
5,281
(4)
(4)
(4)
(4)
(4)
(4)

1971 - Jan.
Feb.
Mar.
Change in
Outstanding:

4/000
4,090
4,300

2,,300
2 : ,330
2,,360

6,300
6,420
6,660

(4)
(4)
(4)

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

-50
-160
-200
-300
- 60
10
110
90

1971 - Jan.
Feb.
Mar.

1970 - Mar.

1

2
3

20

10
30
• 60
50
10

- 50
-200
-240
-300
- 60
20
140
30
50
30

- 30
90
210

• 30
30
30

- 60
120
240

——

—

- 40
•40
--

-209
-368
-552
-152 ,
—
—
—
-—
-—

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

3 ,912
3 ,724
3 ,211
3 ,272
(4)
(4)
(4)
(4)
(4)
(4)

2,452
2,743
2,798

(4)
(4)
(4)

-122
-193
- 26
-213
171
97
153
- 73
34
89

-187
-188
-513
- 61

166
291
55

—

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 Yoik
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
NEW
ANNUAL
MONEY 2
GROWTH
NET
1
RATE
FLOW

4,203
2,549
4,466

1968
1969
1970
1970 - Feb.
Mar.
Apr.
1971 - Feb.
Mar. 2/
Apr. 2/

7.0
4.0
6.7

1,143
-763
936

246
510
6

• --

160
-89
-136

907
1,604
775

——
—

—

--

811
955
625

SAVINGS . LOAN ASSOCIATIONS
&
NET
SHARE CAPITAL
NEW
ANNUAL
MONEY 2
GROWTH
NET
1
FLOW
RATE
Not Seasonally Adjusted
6.0
2,738
7,432
3.2
-1,003
4,200
8.2
5,295
11,173
205
1, 655 .
207 \
2,444
4,103
2,000

——

11,635
6,749
15,639

6.3
3.4
7.7

451
2,165
213

—

2,340
2,626
n.a.

3,35
5,707
2,775

—

--

—

TOTAL
DEPOSITS
ANNUAL
NET
GROWTH
RATE 1
FLOW

177
537
188

--

--

14

—

--

NET
NEW
MONEY 2

3,881
-1,766
6,231
337
448
52
3,151
3,581
n.a.

Seasonally Adjusted

Nov.
Dec.
1971 - Jan.
Feb.
Mar. _/
Apr. 2./
1
2
3

540
796
885
939
1,287

9.3
14.5
15.5
15.8
21.2

1,150

18.6

—

1,130
1,740
3,619
2,472
3,371

9.5
14.5
29.8
19.8
26.6

—

2,785

21.5

——
-—»

——
•
——
—
—

*

1,670
2,536
4,504
3,411
4,658

9.4
14.5
25.1
18.5
24.9

3,937

20.6

—-——

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 for
insured associations only, which represent 96% of industry total resources.
Regular deposits at mutual savings banks exclude items such as Christmas club and certain
escrow accounts, which represent a very small part of total deposits.
SOURCE: National Association of Mutual Savings Banks and Federal Home Loan Bank Board.




TABLE 11: Mortgage Commitments at Selected Thrift Institutions

DATE

TOTAL

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

1
|
TOTAL

NET CHANGE
ALL
SAVINGS &
LOAN
ASSOCIATIONS

(Billions of Dollars, S< asonally Adjusted)

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

1

7.6
7.8
8.0
8.2
8.6

5.2
5.4
5.8
6.1
6.5

2.5
2.4
2.2
2.1
2.0

9.8
8.9
9.3
9.6
10.1

6.8
7.1
7.5
7.8
8.1

10.4
11.2
12.6

8.3
8.9
10.1

1

MUTUAL
SAVINGS
BANKS
(N.Y. STATE)

1/

-.31
-.08
.20
.17
.37

-.24
.21
.34
.26
.41

-.07
-.13
-.14
-.09
-.04

2.0
1.8
1.8
1.8
2.0

.21
.25
.30
.35
.51

:29
•36
.37
.34
.28

-.08
-.11
-.07
.01
.23

2.1
2.3
2.5

.25
.80
1.36

.20
.60

.05
.20

1.16

.20

\

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.
\




16
TABLE_12: Net Change in Mortgage Holdings 1
FINANCIAL INSTITUTIONS
MUTUAL
SAVINGS &
SAVINGS
LOAN
BANKS
ASSOC.

TOTAL
INCLUDING
FNMA-GNMA

TOTAL

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

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

4,705
4,639
6,677
5,535

2,720
3,153
2,787
2,682

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

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

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

1970 - Jan.
- Feb.
- Mar.

1,062
1,099
1,137

485
566
608

50
50
49

38
106
153

136
223
317

234
187
89

604
533
529

1971 - Jan.
- Feb.
- Mar.

1,327

1,305
-n.a.
n.a.

941
1,162
1,735

25

22

n.a.
n.a.

-52
n.a.

DATE

COMMERCIAL
BANKS

LIFE
INSURANCE
COMPANIES

FNMA-GNMA

Not Seasonally Adlusted
1966
1967
1968
1969

239
100
300
180
400
346
Seasonally Adiusted

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

1,542
1,330
1,351
1,485
1,749
2,083
1,817
2,091
2,074
2,187
2, 604

1,044
809
844
1,050
1,281
1,575
1,409
1,727
1,754
1,958
2,504

199
140
76
65
81
165
168
228
195
224
312

143
186
188
155
201
142
175
245
170
176
256

482
322
385
631
777
1,055
983
1,103
1,189
1,427
1,704

220
161
195
199
222
213
83
151
200
131
232

498
521
507
435
468
508
408
364
320
229
100

1971 - Jan.
Feb.
Mar.

1,760
n.a.
n.a.

1,793

283
445
312

225
217
380

1,261
1,425
1,744

24

-33
-87
n.a.

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, 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 196 9.




17
TABLE 13: Net Increases in Mortgage Debt Outstanding
Billions of dollars, SAAR QUARTER

TOTAL

RESIDENTIAL 3

1- to 4FAMILY

MULTIFAMILY

COMMERCIAL

MULTI-AND
COMMERCIAL

FARM

- II
IV

18 6
15 .1

10.9
9 .1

8.3
7.0

2,
.6
2 .1

5.
.5
4,
.1

.2
8.
6,
.0

2.2
1.8

- I
II
III
IV

15 9
20 7
26.
.6
27,
.3

10 .3
13 .9
19 .2
19 .8

7.0
10.5
15.3
16.0

3 .3
3,
.4
3,
.9
3 .8

3 .9
.0
5,
4.
.9
4.8

.3
7,
8.4
8 .8
8,
.4

1.8
1.8
2.5
2.8

- I
II
III
IV

27.
.7
.2
26.
26.
.0
,
29. 6

.0
19,
.2
18.
.7
17,
,2
20.

15.8
15.0
14.1
16.4

3,
.1
.2
3,
3,
.4
3,
.8

6.
.4
5.
.9
6.
.5
.5
7.

.4
9.
.2
9.
.2
10,
11.
,1

2.3
2.2
1.8
1.8

- I
II
III
IV

31.,3
28. 9
26. 5
25. 1

25.
,0
21.
.5
,3
19.
18. 3

18.6
16.8
14.6
13.0

.4
4.
4.
.7
.7
4.
5. 3

.2
6.
,2
5.
5. 3
5. 4

10.
.4
10.
,1
10- o
10. 7

2.2
2.2

H
1.4

-I
II
III pr
IVp

20. 3
23. 4
28. 5
30.3

13. 8
16. 9
21. 0
21. 4

8.8
11.5
15.0
15.1

5. 0
5. 4
6. 0
6. 3

5. 0
5. 0
5. 5
6. 6

9. 8
9. 8
11. 5
12.9

1.5
1.5
2.0
2.3

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 mainly by Federal Reserve.
May differ somewhat from related flow of funds series mainly because of more
aggregative type of seasonal adjustment.
Residential mortgage debt includes nonfarm only and is sum of 1-to 4- family
and multifamily mortgage debt combined.




TABLE 14: FNMA Weekly "Auction" Results
COMMITMENTS IN $ MILLIONS
IMPLICIT YIELD 2 (per cent)
ACCEPTED
1-YEARN
90901-YEAR 1
TOTAL
TOTAL
66MONTH & OVER
OFFERED
& OVER
DAY
DAY
MONTH
\

WEEK
ENDED.
x

44.6

35.5

Feb.

8

23.4

23.3

9.9
10.6

Mar.

1
15
29

186.0
193.5
122.5

51.8
74.0
66.9

15.2
17.9
36.7

Apr. 12
26

126.9
687.2

Jan. 25

May

10

1,168.0

25.6

7.83

7.96

7.67

—

12.7

7.67

-

29.3
41.2
26.3

7.3
14.9
3.9

7.43
7.33
7.32

7.43
7.45
7.44

7.56
7.55
7.54

54.5 39.8
9.4
313.9 154.0 126.6

5.4
33.4

7.32
7.43

7.45
7.54

7.53
7.57

236.8 145.8

19.7

7.57

7.68

7.74

71.3

Note: Under the FNMA auction system, approved sellers of Governmentunderwritten mortgages bid for FNMA forward purchase commitments,
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 o£ FNMA stock, assuming prepayment of
15 years for 30-year Government-underwritten mortgages. Yields shown
are gross, before deduction of 3 6 basis paints fee paid by investors
to servicers.




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

19
TABLE 15: Private Housing Starts and Permits
STARTS

DATE

SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE

TOTAL

UNADJUSTED
TYPE OF FINANCING
FHA VA
OTHER

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2

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

1.392
708
1,224
697
1,242
728
1.393
835
1,603
827
1,425
838
1,509
881
1,583
890
1,693
934
2,054 1,240

684
527
514
558
776
587
627
693
759
814

114.7
128.4
125.0
135.2
140.8
128.7
130.9
140.9
126.9
121.4

25.2
32.4
37.1
40.7
43.4
34.1
34.3
40.4
33.7
63.2

4.8
5.4
5.2
5.1
5.3
5.6
5.3
5.8
5.5
5.7

84.7
90.6
80.8
89.4
92.1
87.7
91.3
94.7
87.2
52.5

1,085
1,177
1,309
1,285
1,309
1,378
1,388
1,523
1,487
1,768

1971 - Jan.-/
Feb.r/
Mar £_/

1,725
946
1,724
978
1,918 1,028

779
746
890

110.6
100.4
164.5

32.3
27.3
33.4

4.6
4.7
6.9

72.8
68.4
124.0

1,635
1,563
1,618

1

2

Total starts are Census estimates including farm for both permit-issuing and
nou-issuing areas. A dwelling unit is started when excavation begins; all units
in an apartment structure are considered started at that time. FHA and VA
starts are units started under commitments by these agencies to insure or guarantee the mortgages. As reported by FHA and VA, a unit is started when a field
office receives the first compliance inspection report, which is made before
footings are poured in some cases but normally after the foundations have been
completed. Other starts are derived as a residual, although total and FHA and
VA starts are not strictly comparable in concept or timing; other starts include both units financed by conventional mortgages and units without mortgages.
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 per
mits reflect direct adjustment for differences in the number of working days per
month, as well as other differences in timing and coverage.




2o

TABLE 16: Mortgage and Bond Yields
FHA
_
MORTGAGES
DATE
30-YEAR

CONVENTIONAL
MORTGAGES
3

SPREAD BETWEEN YIELDS
ON CONV. &
FHA MORTGAGES

1

NEW
Aaa CORPORATE
BONDS
4

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES

1968 - H i g h ^
Low
1969 - High
Low

7.52
6.78
8.62
7.99

7.40
6.75
8.35
7.55

.02
-.27
-.13
-.40

6.79
6.15
8.75
6.91

1.20
.26
1.08
-.13

1970 - High
^Low

9.29
8.40

8.60
8.30

-.10
-.74

9.11
7.80

.99
.01

1970 - Oct.
Nov.
Dec.

8.97
8.90
8.40

8.50
8.45
8.30

-.47
-.45
-.10

8.63
8.34
7.80

.34
.56
.60

1971 - Jan.
Feb.
Mar.

-7.32

7.24
7.28

n.a.
n.a.

7.46

-.14

—

7.95
7.75
7.60

.28

1

Neither mortgage nor bond yields include allowance for servicing costs which are
much higher for mortgages than for bonds. Generally, bonds pay interest semiannually; mortgages, monthly. Mortgage yields, if computed as equivalent to
a semi-annual interest investment, would be slightly higher than given in the
table.
.^t

2

Based on FHA-field-office opinions about average bid prices in the private
secondary market for new-home mortgages for immediate delivery. Data shown
are for 30-year mortgages with minimum downpayments, and weighted by probable
_volume of transactions. Yields computed by FHA, assuming prepayment period
of 15 years for 30-year mortgages. Dashed lines indicate periods of adjustment to changes in contractual interest rates.

3

Based on FHA-field-office opinion on typical interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring officecities.
,

4

See note for Table 1.




21
TABLE 17: Conventional Mortgage Terms

DATE

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

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

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

LOAN
AMT.
($000)
4

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

8.29
8.24
8.28
8.31
8.32
8.35
8.31
8.33
8.26
8.20

1.11
1.02
0.98
0.99
1.01
0.98
1.03
1.05
0.99
1.07

8.47
8.41
8.45
8.48
8.49
8.52
8.48
8.51
8.43
8.38

25.0
24.8
25.3
25.1
25.1
24.8
25.2
25.1
25.3
25.8

71.1
71.3
71.7
71.3
71.5
71.6
72.7
72.4
72.1
73.8

25.1
24.5
25.3
25.6
24.9
25.5
25.3
24.8
25.2
25.8

8.26
8.19
8.18
8.19
8.21
8.25
8.27
8.20
8.18
8.12

0.98
0.90
0.94
0.98
0.95
0.89
0.88
0.88
0.85
0.85

8.43
8.34
8.34
8.36
8.37
8.41
8.42
8.35
8.32
8.26

22.6
22.7
22.8
23.0
23.1
23.1
22.8
22.8
22.7
23.3

70.4
70.2
70.3
71.5
71.5
71.5
71.7
71.5
71.5
71.9

20.6
20.4
21.1
21.5
21.7
21.4
21.0
20.5
21.1
21.7

1971
Jan.
Feb
Mar.

8.03
7.74
7.52

0.92
1.00
0.81

8.18
7.91
7.66

25.8
26.2
25.9

73.3
73.9
73.3

26.4
26.2
25.8

7.94
7.67
7.48

0.82
0.79
0.77

8.08
7.80
7.60

23.5
24.0
24.1

72.5,
73.1
73.3

22.0
22.5
22.9

V

Compiled by Federal Home Loan Bank Board in cooperation with Federal Deposit Insurance
Corporation. ^Oata 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 owner^
builders. 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.




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