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after six houths

C B E E f f l .
L.S.6 C o n f i d e n t i a l ( F . R . )

May 24, 1971

MARKET
:VELOPMENTS




L

.

S

-

<

<

INDEX
3-5

D e v e l o p m e n t s in the Corporate and Municipal Bond Markets

6-7

Capital Market Y i e l d s

8-13

Capital Market Volume

14-17

Stock Market

18-33

Mortgage Market

SYMBOLS:
e

Estimate

p

Preliminary

r
n.a.

Revised
Not a v a i l a b l e




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
28

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

7.88
7.93
8.23
n.a.

7.43
7.48
7.57
n.a.

610
376
441e
850e

85
85
93e
n.a.

MOODY'S
SEASONED

WEEK ENDING:

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

YIELDS
BOND BUYER
SEASONED 20
BOND INDEX

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

n.a.
n.a.
n.a!
n.a.
n.a.

BONDS SCHEDULED
WITHIN 28 DAYS

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

1,164
1,136
743
884
1,443

7
14
21
28

5.65
5.80
5.70
n.a.

5.84
5.96
5.96

280
550
851
510e

84
81
86
n.a.

1,505
1,299
966

1 Derived by adjusting to a Aaa basis, new issues of publicly-offered corporate bonds
. with call protection, rated A, Aa, or Aaa by Moody's Investors Service (except serial
and convertible issues, offerings of natural gas pipeline and foreign companies, and
bonds guaranteed by the Federal Government.)
2 Millions of dollars unless otherwise indicated.
Note:

See footnotes to Tahlu 3




TABLE 2: Details on Inventories
DATE
OFFERED

1

5/20
4/27

OFFERED

\
AMOUNT
(MIL. S)

1

60; 0
50.0

DATE
| RELEXSED

5/5
5/10
5/11

5/18
5/18
5/18

CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK
ORIGINAL
RATING AND
ISSUER
YIELD CALL PROTECTION,
COUPON
Crocker Nat'1
Avco Fin. Svces

5.75
8.88

5.75
9.00

—

/

NC
5 yrs.

ESTIMATED PROPORTION SOLD
70
70

CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK
ORIGINAL INCREASE RATING AND ESTIMATED PROAMOUNT
ISSUER
COUPON
IN YIELD CALL PROT. PORTION RELEASED
YIELD
15.0
Miss. Pwr.
8-3/8
8.30
+16
A 5 yrs.
60%
110.0
S. New England Bell
8-1/8
8.00
+25
Aa 5 yrs.
50%
35.0
Kansas Gas & Elect.
8-1/8
8.04
+16
Aa 5 yrs.
10%

INVENTORIES 1
DATE
1971 - A p r .
May

23
30
7
14
21

794
756

666
622
575

251
197
125
167
168

128
48
90
82

N.C. - No call protection.
1

All figures in millions of dollars. Blue List is daily average for v.eck ended Fridav, except for latest ..eek
of three days ended Wednesday. All other fi mires arc as of Fridav.

which is dally average



TABLE 3: High Grade Bond Yields

DATE

NEW
CORPORATE
Aaa 1

1969 - High
Low

8.85
6.90

(12/5)
(2/21)

1970 - High
Low

9.30
7.68

(6/19)
(12/18)

1971 - High
Low

8.23
6.76

(5/21)
(1/29)

1971 - April
May

MOODY'S SEASONED
CORPORATE
Aaa 2

U.S. GOVERNMENT
20-YEAR
CONSTANT
MATURITIES 3

BOND
BUYER'S
SEASONED
MUNICIPALS 4 .

(12/26)
(1/12)

6.97
5.96

(12/26)
(1/24)

6.90
4.82

(12/18)
(1/28)

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

7.55
6.17

(5/29)
(12/18)

7.12
5.33

(5/29)
(12/11)

6.42
5.69

(5/21)
(3/23)

5.96
5.00

(5/20)
(3/18)

7.84
6.55

7.57
7.06

(5/21)
(2/12)

30

7.81

7.30

6.11

5.69

7
14
21

7.88
7.93
8.23

7.43
7.48
7.57

6.25
6.33
6.42

5.84
5.96
5.96

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.




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

PERIOD

1

STATE AND LOCAL

2

1970

1969

1971

1970

January
February
March

3 ,115
3 ,000
6 ,075

2,636
1,802
3,539

2,075
2,045
2,098

2,702
1,833
2,107

1 ,340
1 ,214
1 ,555

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 f
1 , 1 1 0 2:
737 ^

July
August
September

2,768
2,274
3,518

2,478
1,427
2,427

1 ,348
1 ,359
1 ,758

1,097;
808?
5591

October
November
December

3,777
4,182
3,980

1,933
2,375
2,532

1,, 9 2 4
1 ., 7 4 8

2 .,190

1,280'
886:
816

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

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

4 ,109
,
3. 7 2 8
4,465
5,,862

2,787;
3,648:
2,46'
2,982

18,445
27,005
38,944

13,572
19,904
26,744

1971

1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

1st half
Three quarters
Year

12, 190

6,642

,

7 , ,837
12, 302
18, 164

1969
1,262
987
'
538

6,435
8,895:
11,881"

Excluding finance companies
1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

6,170
7,037

Year
1
2
3

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




&
i

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

QUARTER
OR
MONTH

1970 - II
III
IV
1971 - I

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

1,346

3,048
2,663
4,020

3,794

3,197

1,606

3,594

398
230

689
817
939
638
682
994

1,109

617
338
704
1,083
898
709

89
- 20
26
68
11
4
56
11
159

62
1,747
353
144
279
445
371
693
282

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

489
524
1,293

43
3
38

1,3.00

447
399
436
320
205
389
304
283
834

701
468

3,115
3,000
6,075

2,033
4,135

594
275
647

e/Ayr.

3 > 910

2,160

450

1

2,162

2,022

1971 - Jan.
Feb.
Mar.

2,201

OTHER
ISSUERS 1

2,812
2,714
3,406

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

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

COMMUNICATIONS

2,445
2,314
3,169

1,282
914
1,421
1,516

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

PUBLIC
UTILITY

710
287
737
824

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

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

GROSS PROCEEDS BY
TYPE OF ISSUER

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

1,021

135
83
226
84

82

1,107
1,056

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

99
168
557

716
661
2,417

391
683
532

1,332

1,069
1,452

390

1,390

860

340

872

107
59
121
388
184
165

1,006

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.




600

868

676

587
1,675

TABLE 6: Large Long-term Public Security Issues for New Capital
(Oth^r than U.S. Treasury) 1
3, thru May

TYPE2

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 '1 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.
Nabieo*
Public Service Elec. & Gas Co.
Monongahela Power
Union Tank Car Co.

COUPON
RATE OR
NET INTEREST COST

MATURITY

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

2001
2001
1991
1996
1993
2001
2001
1978
2001
2001
2001
1996
1986

11.00

70.0
20.0
25.0
15.0
75.0
40.0
50.0
75.0
18.4
22.5
60.0

1st. Mtg
1st. Mtg

2

1971

OFFERING
YIELD

MOODY'S
RATING

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

8-3/4
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

&ti?TrSt
.
1st. Mtg ;
Southwestern Pub. Serv. Co.
Conn. Gen '1 Mtg. & Realty Invest . Debs.
Debs.
Consolidated Nat. Gas Co.
Debs.
Gen'1 Tel. Calif.
S.F. debs.
Armstrong Cork Co.
Com. Stk.
Gen'l Cigar Co.
Com. Stk.
New England Elec. System
Conv. Sub
Crocker Nat'1 Corp.
debs.




AMOUNT
(MILLIONS
OF
DOLLARS)

Baa
Aa
Baa
Baa

11.00

--

A
A
Baa
Aa

Baa

8.13 ,
7.38
7.75

8.00
7.38
7.75

Aa

2001
2001

8.38
8.88

8.32
8.70

Aa
A

1991
2001
1996
1996
•1996
1996

8.45
8.45
6.00
8.38
8.88
8.00

8.45
8.45
6.00
8.35
8.80
8.00

A
Aa

1996

5.75

2008
1986
2001

'
'

-

i

x

5.75

—

Aa

Aa
Baa
A

9

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

ISSUER

State and Local
Van Dyke Pub. Sch, Diet., Mich.
Mass. Health & Ed. Fac, Auth.
Detroit, Mich.
Wash. Suburban Sanitary Dist. Md.
*St. Clair Co. Bldg. Comm. 111.
Sacramento, Calif. Municipal
Utility Dist.
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
Nassau Co., N. Y.
Austin, Texas
Austin, Texas
Ohio, State of
West Virginia, State of
Dade Co Port Auth., Fla.
Dade Co. Port Auth. Fla
King Co., Wash.
New Jersey Turnpike
Fairfax Co., Va.
New Housing Authority
New Orleans, La.
New Orleans, La.
New Orleans, La.




TYPE

2

AMOUNT
(MILLIONS
OF
DOLLARS)

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

MATURITY

COUPON
RATE OR
NET INTEREST COST

OFFERING
YIELD

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
1974-88
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

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

6.25
5.61
6.44

—
--

Baa
A
A

—

Aa
Aa
Aa

G.O. \
Rev.
G.O. !
G.O.
G.O.
G.O.

27.0
14.0
12,0
30.0
100.0
156.0

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

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

48.0
6.0
6.6
75.0
45.0
3.5
21.3
10.4
125.0
30.0
196.9
4.0
1.8
14.0

1972-2000
1971-96
1972-96
1972-91
1972-96
1975-81
1998
1973-2011
1975
1972-1993
1971-2011
1972-90
1973-91
1972-95

5.69

3.25-6.30
2.80-5.70
3.00-6.20
3.20-5.50
3.40-6.40
5.75-7.00
8.00
3.75-6.75
4.63
3.50-6.50
2.90-5.90
3.10-5.90
3.55-6.10
3.20-6.50

A
Aa
Aa
Aaa
A-l
Baa
Baa
A

5.17
5.50
8,06
8.06
6.58
4.63
5.98
5.74
5.52
5.78
. 5.81

4

A
Aaa
Aa
A
A-l

.
.

TABLE fe: Large Long-term Public Security Issues for New Capital (continued)
(Other than U.S. Treasury) 1
M a y 3, thru M a y 21, 1971

ISSUER

Other
F e d e r a l Home L o a n b a n k
Small B u s i n e s s Administration

TYPE 2

Bds.
Debs.

AMOUNT
(MILLIONS
OF
'
DOLLARS)

400.0
30.0

MATURITY

1973
1981

COUPON
RATEX\ OR
NET, INTEREST COST

5.70
7.38

|
! <>FFKR '
ri.e
| YIELD

5.70
7.28

MOODY'S
RATING

--

Rights ofiering.
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, (1.0. denotes general obligation;
'<ev.-Ut., revenue obligations secured only by income from public utilities;
Rev.-Q.-lit, , revenue bonds secured only by income from quasi-uti lit ivs ; Rev.-S.T.,
revenue bonds secured by revenue from specific taxes only; Rev.-Rent., revenue
bonds secured solely by lease payments.
Includes foreign government and International Bank for Reconstruction and
Development issues and non-qu.aranteed issues by Federal Agencies.




ii
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

Corporates
Industrial Nucleonics
Grolier Inc.
First Empire State Corp.
Quaker Oats Co.
Broadway-Hale Stores Inc.
New Eng. Tel. & Tel. Co.
Northern States Pwr. Co.
Sperry Rand Corp.
Texaco Inc.
National Can Corp.
Mass. Mutual Life Ins. Co.
Dennison Manufacturing Co.
Kentucky Utilities Co.
United Jersey Banks
Southwestern Elec. Pwr. Co.
Chase Manhattan Corp.
Kentucky Utilities Co.
Tex. Gas Trans. Corp.
Jersey Central Pwr. & Lt.
Rep. Nat'1 Bk. of Dallas
Occidental Petroleum Corp.
Bayton Pwr. & Lt. Co.
Dayton Pwr. & Lt. Co.
Gen'l Tel. Co. of the S.E.
Central Tel. 5 Utility Corp.
c
Microdot Inc.
Beneficial Corp.
Monumental Corp.
*Interlake Inc.
Beneficial Corp.
Equimark Corp.
Kansas City Pwr. & Lt. Co.
Northern Nat. Gas Co.
Western Elec.
Pub. Serv. Co. of N. Mex.
Georgia Pwr. Co.
Ohio Edison
Detroit Edison Co.
Michigan Bell Tel. Co.
West Penn. Pwr.
American Century Mtge. Inves.




Debs.
S.F. debs.
Notes
Debs.
S.F. debs.
Debs,.
1st. Mtg.
Debs.
Debs.
Debs.
Com, Stk.
Debs.
1st. Mtg.
Debs.
Bds.
Conv. Debs.
Equity Sec.
Debs.
Debs.
Prom. Notes
Debs.
Pref. Stk.
1st. Mtg.
Bds.
1st. Mtg. Notes
Bds.
Notes
Debs.
Bds.
Debs.
1st. Mtg.
Debs.
Debs.
1st. Mtg;
1st. Mtg.
1st. Mtg.
1st. Mtg.
Bds.
1st. Mtg.
Conv. debs.

15.0
40.0
25.0
50.0
35.0
200.0
50.0
160.0
200.0
20.0
100.0
20.0
35.0
20.0
25.0
200.0
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
15.0
27.0
60.0
100.0
20.0
100.0
60.0
100.0
150.0 .
40.0
25.0

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

24
25
25
25
25
25
26
27
27

2
3
8
8
14
10
15
17
21
23

""

12
TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury) 1
As of May 21, 1971
I
ISSUER

State and Local
Michigan, State of
Port of Seattle Wash.
N.Y. St. Dorm. Auth.
Phoenix Ariz.
Penna, State of
Lower Col. River Auth., Tex.
Cleveland City Sch. Dist.
Oakland Co., Mich.
San Bernardino, Calif. Redevp
Agcy.
Illinois
Illinois
Mukilteo S/D #6, Wash.
New Jersey
Coastal Ind. Wtr. Auth. Tex.
Troy, Mich. S/D
Louisiana, State of
Mecklenburg Co., N.C.
Allegheny Co., Pa.
Los Angeles Dept. of Wtr. & Pwr.

TYPE

1

G.O.
j Rev.
: G.O.
Rev.
G.O.
G.O.
G.O.
G.O.
Bds.
Pollution Bds.
G.O.
G.O.
G.O.
Rev.
G.O.
G.O.
G.O.
G.O.
Rev.

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING
j

57.5
29.0
20.3
19.0
100.0
60.0
16.0
13.3

May
May
May
May
May
May
May
May

25
25
25
25
26
26

13.5
100.0
100.0
10.0
75.0
25.0
24.0
34.6
10.0
29.7
39.0

May
June 2
June 3
June 3
June 3
June 9
June 9
June 24
June 29
July 1
August 11

Other
Gov't Dev. Bank for Puerto
;ico

*

l
2

Bds.

35.0

May

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

13

STOCK PRICES AND VOLUME
STOCK PRICES 1 -

TRADING VOLUME 2 '

DATE
NYSE INDEX 3 '

D J . INDUSTRIALS

AMEX 4 -

AMEX

NYSE

1969 - H i g h >
Low

5 0 . 3 2 (5/14)
49.31 (7/29)

16.5 (3/29)
9 6 8 . 8 5 ( 5 / 1 4 ) 3 2 . 9 1 (1/3)
769.93(12/17) 25.02 (7/29) 8.6 (8/29)

8.0(1/31)
3 . 6 (11/21)

1970 - H i g h
Low

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

18.5 (12/4)
8 4 2 . 0 0 ( 1 2 / 2 9 ) 27.02 (1/8)
7.8 (8/14)
19.36 (5/27)
631.16(5/26)

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

5 7 . 7 6 (4/28)
49.73 (1/4)

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

26.68 ( 4 / 2 8 ) 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

5.0
5.6
5.8
5.1
5.3

7
14

56.67
56.35

21

55.59

,

1971 - H i g h
Low
1971 - Apr.

May.

936.97
936.06
921.87

14.9
19.0
20.6
18.4
20.6

26.24
26.15
25.87

17.2
16.0
14.1

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 weekj or
In recent years, however abbreviated trading to the extent, and over the time
Hours/
Days/
From
Through:
Day
Week

4.7
4.8
4.1

January 3, 19*9
July 7, 1969
January 2, 1970

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

3.

12/31/65 - 50

4.

Average dollar value of shares listed.




4
4-1/2
5

5
5
5

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

TABLE 9: Security Credit

• CREDIT EXTENDED TO
MARGIN CUSTOMERS BY:
BANKS r T
TOTAL

END OF PERIOD

. CUSTOMERS 1
, NET - DEBIT
BALANCES

NET

CKEDTI

CUSTOMERS' NET LXTlNDED i :
;
FREE CREDIT
I B R C K F R 3 A::!
| DEALERS 3
BALANCES

Outstanding;
1970

Mar.

4,520

2,370

6,890

6,353

2,441

3,912

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)

2,248
2,222
2,009
(5)2,180
2, J83
2,236
2,163
2,197
2,286

3,724
3,211
3,272
(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
6,429
6,660

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

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

1971 - Jan.
Feb.
Mar.

'

/

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
—

(4)
(4)
(4)

-209
-368
-552
-152
-——
——
——

--

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 mar
until March 1968 included loans secured by U.S. governments, the amoun
loans included is thought to have been small.
"Bank loans to others than brokers and dealers for purchasing or cn verities other than U.S. governments." .
The difference between customers' net debit balances and custoim.rs' m l
dit balances, this figure represents the net credit extended by broker
dealers to the nonfinancial public.
NOTK: With the exception of bank loan data, figures are supplied by L
Sto-_l; Exchange and are end of month data. Bank loans are for weekly r •port, in
large commercial banks. Broker data includes loans for regulated seen • i t i :-s; K:r.,/
dat.v includes loans for the purpose of purchasing or carrying any sec-.:
'h v t l u - i
regulated or not.




TABLE 10: Savings Flows at Nonbank Depositary Intermediaries
($ m i l l i o n s )

DATE

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

SAVINGS & LOAN ASSOCIATIONS
NET
SHARE CAPITAL
NEW
1 ANNUAL
MONEY2
NET
GROWTH
1
FLOW
RATE

TOTAL
DEPOSITS
ANNUAL
NET
GROWTH
RATE 1
FLOW

NET
NEW
MONEY2

Not Seasonally Adjusted
4,203
2,549
4,466

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

246
510
6
907
1,604
775

1,143
-763
936

7.0
4.0
6.7

\
—
—
——
—
--

160
-89
-136
811
955
625

7,432
4,200
11,173

2,444
4,103
2,000

11,635
6,749
15,639

6.3
3.4
7.7

3,881
-1,766
6,231

451
2,165
213

——

337
448
52

2,340
2,626

205 v
1,655
207

2,738
-1,003
5,295
177
537
188

6.0
3.2
8.2

3,35
5,707
2,775

——

—
—

---

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
1,150

9.3
14.5
15.5
15.8
21.2
18. 6

- - . - --

1,130
1,740
3,619
2,472
3,371
2,785

9.5
14.5
29.8
19.8
26.6
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 6
c
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.
L971 - Jan.
Feb.
Mar.

7.6
7.8
8.0
8.2
8.6

5.2
5.4
5.8
6.1
6.5

9.8
8.9
9.3
9.6
10.1
10.4
11.2
12.6

1

MUTUAL
SAVINGS
BANKS
(N.Y. STATE)

If

2.5
2.4
2.2
2.1
2.0

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

-.24
.21
.34
.26
.41

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

6.8
7.1
7.5
7.8
8.1

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

8.3
8.9
10.1

2.1
2.3
2.5

.25
.80

.20
.60

.05
.20

1.36

1 .,16

.20

i

Based on data from Federal Homo Loan Bank Board and Savings Banks A s s o c i a t i o n of
New York State. Data for savings banks and S&L's include a minor amount ot 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.




1

17
TABLE 12: Net Change in Mr tgage Holdings 1

DATE

TOTAL
INCLUDING
FNMA-GNMA

TOTAL

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

LIFE
INSURANCE
COMPANIES

FNMA-GNMA

Not Seasonally Adlusted

21,886

18 ,219
21 ,273
19 ,814
16 ,977

4,639
6,677
5,404
2,526

3,153
2,787
2,682
1,845

7 ,520
9 ,350
9 ,676
10 ,288

2,907
2,459
2,052
2,318

1,797
2,508
4,375
4,909

Jan.
Feb.
Mar.
Apr.

*1,064
1,099
1,137
1,425

r460
566
608
948

50
50
49
125

38
106
153
160

136
223
317
486

r236
>187
89
177

604
533
529
477

1971 - Jan.
- Feb.
-Mar.
-Apr.

1,327

1 ,305
n.a.

100
300
400
500

239
180
346
n.a.

1970 - Feb.
Mar.
Apr.
May
•
«
June
;
July
Aug.
j
Sept.
Oct.
Nov.
Dec.

1,542
1,330
1,351
17485
1,749
2,083
1,817
2,091
2,074
2,187
2,604

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

199
140
76
65
81
165
168
228
195
224
312

.971 - Jan.
Feb.
Mar.

1,760

1,
,793

283
445
r488
453

1970 -

20,016

1967
1968
1969r/
1970b./

23,781
24,189

n.a.

941
1 ,162
rl ,765
2.
,134

25
n.a.
n.a.
n.a.

22
-52
n.a.
n.a.

220
161
195
199
222
213
83
151
200
131
232

498
521
507
435
468
508
408
364
320
229
100

24
n.a.
n.a.
n.a.

-33
-87

Seasonally Adiusted

1

-

143 ^
186
188
155
201
142
175
245
170
176
256
225
217
380

482
322
385
631
777
1 :,055
983
,103
1,
,189
1,
,427
1,
,704
1,
,
1, 2 6 1
,425
1,
r l ,774
2,,034

|

Monthly data for
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 1970.




18
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

5.5
4.1

,2
8.
6. 0

2.
,2
1,
.8

1966 - II
IV

18 6
15 1

10 9
9 1

.3
8.
.0
7.

2.6
2.1

1967 - I
II
III
IV

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

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

.0
7.
10.
,5
.3
15.
16.
.0

3.3
3.4
3.9
3.8

3.9
5.0
4.9
4.8

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

.8
1.
1.
.8
2.
.5
2.
.8

1968 - I
II
III
IV

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

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

15.
.8
15.
.0
,1
14.
16.
,4

3.1
3.2
3.4
3.8

6.4
5.9
6.5
7.5

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

2.
.3
.2
2.
.8
1.
1.
.8

1969 - I
II
III
IV

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

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

18. 6
16.
,8
14. 6
13. 0

4.4
4.7
4.7
5.3

6.2
5.2
5.3
5.4

10.,4
.1
10.
10. 0
10. 7

.2
2.
2.
.2
•8
1.
1.
,4

1970 - I
II
III P
IVp

20. 3
23. 4
28. 5
30. 3

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

8, 8
11. 5
15. 0
15. 1

5.0
5.4
6.0
6.3

5UL
5.0
5.5
6. 6

,8
9.
,8
9.
11. 5
12. 9

1.
,5
.5
1.
2.
.0
2.
.3

1 Derived fro;* 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 interpolation*
and extrapolations, where required, estimated mainly by Federal Reserve.
2 "May differ somewhat from related^flow of funds series mainly because of more
aggregative type of seasonal adjustment.
.
3 Residential mortgage debt includes nonfarm only and is sum of 1-to 4- family
and multifamily mortgage debt combined.




19

TABLE 14: FNMA Weekly " A u c t i o n " Results
|
WEEK
ENDED

IMPLICIT Y I E L D 2 ( p e r c e n t )
C O M M I T M E N T S IN $ MILLIONS
ACCEPTED
1-YEAR i
l
1-YEAR 1
90690TOTAL
TOTAL
6& OVER
M O N T H & OVER
DAY
OFFERED
MONTH
DAY
25.6

—

7.83

7.96

12.7

--

7.67

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
9.4
39.8
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

. 25

44.6

35.5

,

8

23.4

23.3

9.9
10.6

.

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

May

1,168. 0

10

71.3

-

Note:
Under the FNMA auction system, approved sellers of Governmentunderwritten mortgages bid Cor FNMA forward purchase commitments,
Bids I
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.
Average secondary market yield after allowance for commitment fee and
required purchase and holding of FNMA stock, assuming prepayment of
1r) years for 30-year Government-underwritten mortgages.
Yields shown
are gross, before deduction o£ 3 8 b a s i s poiruts fee paid b y investors
to servicers.




Prior to August 10, 1970 the servicing fee was 5 0 basis points.

2o

TABLE 15: Private Housing Starts and Permits
STARTS
UNADJUSTED
TYPE OF FINANCING
FHA | VA I OTHER

SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE

1970 - Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1971

Jan.
Feb.r/
Mar r/
Apr. £_/

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE)2

708
1.392
697
1,224
728
1,242
835
1.393
1,603" 827
838
1,425
881
1,509
890
1,583
934
1J#3
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

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

1,725
946
1,754
985
1,950 1,045
1,903 1,081

779
769
905
822

110.6
102.2

32.3
27.3
33.4
44.6

4.6
4.7
6.9
8.4

72.8
68.4
124.0
147.4

1,635
1,563
1,627
1,618

167.2
200.4

80.8

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




.

21

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

CONVENTIONAL
MORTGAGES
3

SPREAD BETWEEN YIELDS
ON CONV. &
FHA MORTGAGES

NEW
Aaa CORPORATE
BONDS
4

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES

1968 - High
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.

-»—

7.95
7.75
7.60

7.24
7.28

n.a.

7.46

-.14

V

2

--

7.32

.28

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.
,4
Based on FHA-field-office opinions about average bid prices in the private
secondary market for new-home mortgages for immediate delivery. Data shown
are for 30-year mortgages with minimum downpayments, and weighted by probable
volume of transactions. Yields computed by FHA, assuming prepayment period
o f 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.




TABLE 17: Conventional Mortgage Terms
NEW HOMES
CON- FEES &
TRACT CHARGES EFFEC- MATURITY
(PER
RATE
TIVE I (YEARS)
(PER
CENT) RATE I
~CENT)
2
3
1

I

DATE

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

22

1

EXISTING HOMES
CON- FEES &
LOAN /
TRACT CHARGES EFFEC- MATU- PK1CF ! LOAN
(PER
RATE
TIVE
RITY
RATIO
AMI.
CENT) RATE (YEARS) (PER
(PER
($000)
CENT)
CENT)
2
3

I
I

1 '

1970
8 .29
8 .24
8 .28
8 .31
8 .32
8 .35
8 .31
8 .33
8 .26
.20
8,

1 .11
1 .02
0 .98
0 .99
.01
1,
0,
.98
.03
1.
,05
1.
0.
,99
1.
,07

8 .47
8 .41
8,
.45
.48
8,
. 8.
.49
.52
8.
,48
8.
,51
8.
8. 43
8. 38

25 .0
24 .8
25 .3
25 .1
25,.1
24,.8
.2
25.
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
.37
8,
.41
8,
.42
8,
.35
8.
.32
8.
.26
8.

22 .6
22 .7
22 .8
23 .0
23 .1
23 .1
22 .8
22,
.8
22,.7
23,.3

70 .4
.2
70,
.3
70,
.5
71,
.5
71.
.5
71.
71.
.7
,5
71.
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
.03
Jan.
8.
Feb
.74
7.
.52
Mar.r/ 7.

0. 92
1. 00
0. 83

8. 18
7. 91
7. 66

25. 8
26. 2
25. 9

73.3
73.9
73.7

26. 4
26. 2
26, 0

7.94
7.67
7.47

0. 82
0. 79
0. 77

8. 08
7. 80
7. 60

23.
.5
24.
.0
24.,1

72. 5
73. 1
73. 5

22.0
22.5
23.0

Apr. e/ 7 .36

0. 74

7. 48

26. 4

73.7

26. 5

7.35

0. 74

,47
7.

24.
.1

73. 5

23.0

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

1

2

1-3
'
4

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 r a t e s — i n Table 16.
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.
Includes fees & charges amortized over a 10 year period in addition to the contract
interest rate.
Derived by FRB.




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