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

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November 2, 1970

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CAPITAL
(MARKEIDEVELOPMENTS

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




(wevy-xyvo

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 o.

Not available




3
TABLE 1: Yields, Volume and Reception

YIELDS
MOODY'S
.SEASONED
NEW ISSUE
Aaa

WEEK ENDING:
1970 - Sept.

8.40
8.52
8.50
8.35

11
18
25
Oct.

2
9
16
P

Nov.

v/30

6

WEEK ENDING:

1970 - Sept. 4
11
18
25
Oct.

2
9
16
23
30

/

8.37
8.35
8.53
8.64
8.77
n.a.

8.13
8.13
8.09
8.06
8.05
8.02
8.01
8.03 .
8.07^
n.a.

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

CORPORATE BOND MARKET
VOLUME2
PER CENT
GROSS
SOLD BY END
BONDS SCHEDULED
OF WEEK
OFFERINGS
WITHIN 28 DAYS
511
372
305
812

74
97e
87
80

976
1,361
1,350
1,379

495.
469
490
652
536.
75 Oe

70
81
«9
86
93
n.a.

1,178
1,179
1,237
1,617
1,326

MUNICIPAL BOND MARKET
VOLUME2
PER CENT
BONDS SCHEDULED
GROSS
SOLD BY END
WITHIN 28 DAYS
OF WEEK
OFFERINGS

5.70
6.00
5.96
5.95

6.16
6.30
6.26
6.28

186
213
676
324

62
47
83
75

919
1,147
851
1,184

6.15
6.15
6.10
6.10
5.85

6.39
6.38
6.35
6.45
6.40

346
450
346
668
454

77
• 71,
68
59
88.

1,516
1,148
1,138
934
865

Nov.
6
n.a.
! 200e
n.a.
1 Derived by adjusting to a Aaa basis, new issues of publicly-offered corporate bonds
with call protection, rated A, Aa, or Aaa by Moody's Investors Service (except serial
and convertible issues, offerings of natural gas pipeline and foreign .companies, and
bonds guaranteed by the Federal Government.)
2 Millions of dollars unless otherwise indicated.
Note:

See footnotes to Table 3




J
TABLE 2: Details on Inventories
;
—

DATE
OFFERED

AMdUNT
(MIL. $)

10/29
10/29
10/28
10/22
10/22
10/22
10/22
10/15

40.0
35.0
25.0
9.7
25.0
125.0
100.0
50.0

OFFERED

DATE
| RELEXSED

CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK
ORIGINAL RATING AND
YIELD CALL PROTECTION
COUPON
ISSUER
Mich. Wise. Pipeline
Miss. Riv. Trans.
Southern R. R.
James Talcott
Skelly Oil

9.75
9.75
9.00
9.75
8.15
8.63
8.25
8.80

Sears Roebuck

Singer
Clark Equip Credit

9.75
9.75
8.90
9.75
8.15
8.67
8.25
8.80

A
—

Aa
--

Aa
A
A
A

ESTIMATED PROPORTION SOLD

5 yrs
5 yrs
—
--

5
5
5
5

yrs
yrs
yrs
yrs

75%
70%
50%
70%
95%
90%
90%
60%

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

AMOUNT

None

INVENTORIES 1
MUNICIPALS
BLUE LIST
|
IN SYNDICATE

DATE
1970 - Oct.

2
9
16
23
30

.

607
645
635
798
732

151
202
177
372
218

CORPORATES
IN SYNDICATE
179
95
93
U

8l

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


which is daily average of three days ended Wednesday. All other figures.are as of Friday.


BONDS IN SYNDICATE
Friday figures

t h




r

Millions of dollars

~1

I I I I I I I I I |

CORPORATE BONDS IN SYNDICATE

JlL

•Hi .,111. Illli ,1,1111 illllllilll

i i. i i i i i i i

MUNICIPAL BONDS IN SYNDICATE

SEPT.

JUN.

SEPT.

1970

\

TABLE 3: High Grade Bond Yields
'

DATE

NEW
CORPORATE
Aaa1

MOODY'S SEASONED
CORPORATE
Aaa 2

U.S. GOVERNMENT
20-YEAR
CONSTANT
MATURITIES3

BOND
BUYER'S
SEASONED
MUNICIPALS4

1968 - High
Low

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

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

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

4.85 (1/26)
4.07 (8.8)

1969 - High
Low

8.85 (12/5)
6.90 (2/21)

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

6.9V (12/26)
5.96 (1/24)

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

1970 - High
Low

9.30 (6/19)
8.20 (2/27)

8.60 (7/3)
7.79 (3/6)

7.55 (5/29)
6.60 (3/6)

7.12 (5/29)
5.95 (3/12)

8.35
8.53
8.64
8.77

8.02
8.01
8.03
8.07

6.79
6.85
6.94
6.95

6.38
6.35
6.45
6.40

1970 - Oct.

9
16
23
30

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
1
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.
1




x

HIGH GRADE BOND YIELDS

NEW CORPORATE Aaa

MOODY'S
CORPORATE Aaa
U S. GOVT. 20-YR.
CONSTANT MATURITIES
BOND BUYER MUNICIPAL

1966




1967

1970

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

GROSS PROCEEDS
CORPORATE1

PERIOD

STATE AND LOCAL 2

1970

1969

1968

January
February
March

2,636
1,802
3,539

2,075
2,045
2,098

April
May
June

3,170
3,909
3,389e

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

Quarter
Quarter
Quarter
Quarter

1st half
Three-quarters
Y-eaif

1968

1970

1969

1,771
1,608
1,799

! 1,340
1 1,214
! 1,551

1,262
987
538

1,178 i
1,158 t
1,404

2,748
2,076
2,530

1,428
1,866
2,411

|
1
:

1,646
995
1,070

1,801
1,110
737

1,318
1,143
1,395

2,648
2,550e
3,600e '

2,478
1,427
2,427

2,143
1,432
1,557

|
1

1,306
1,342
I,650e

1,097
808
559

3,325a

1,933
2,375
2,532

2,129
1,767
2,054

l,900e

1,280
886
816

7,977
10,468
8,798e

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

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

4,105
3,711
4,298e

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

18,445
27,243e

13,572
19,904
26,744

10,882
16,015
21,965

7,816
12,114e

6,435
8,899
11,881

'i
1,469
1,699 f
1,444
2,230 I
1,021 •i
1,115
1
'<•
3,840
3,856 <
4,612
4,366
7,956
12,008
16,574

Excluding finance companies3
1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

Year

6,170
7,037

|

5,107
5,427
4,785
5,654
20,973

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




i

I

TABLE 5: New Corporate Security Issues, Type of Issue and Issuer
(In millions of dollars)
GROSS PROCEEDS BY
TYPE OF ISSUE
COMMON
AND
MEMO:
BONDS
PUBLICLY PRIVATELY PFD.
ISSUES INCLUDED
MFG.
OFFERED
. PLACED
STOCK
FOREIGN
CONVERTIBLE
'

QUARTER
OR
MONTH

11
III
IV
I
lie
Ille
Sept.
Oct.
Nov.
Dec.

PUBLIC
UTILITY

OTHER

1,,773
1,,862
1=
,314

1,878
1,544
1,967

432
684
598

3,266
2,243
2,961

222
135
n.a.

922
710
267

2 ,584
2 ,445
2 ,327

2,085
2,812
2,637

766
2,162
1,274

2,543
3,048
2,560

35
59
8
48

369
105
303
401

625
260
453
601

544
745
622
600

272
120
201
277

984
808
1,099
1,054

61
33
128
89
20
26
68
n.a.
n.a.
n.a.

387
249
286
398
230
82
107
60
100
220

811
357
1 ,416
689
817
939
577
850
900
975

639
540
906
1,109
600
1,103
842
600
1,195
910

234
226
306
62
1,747
353
144
375
755
360

3,411
3,186
3,479

1,673
1,347
1,053

2 , 268
1 , 797
2 , 307

277
289
115

7,977
10,468
8,798

4,577
6,994
5,981

1,235
1,282
1,136

2,,147
2,,190
1.,680

2,427
1,933
2,375
2,532

1,222
969
1,164
1,346

479
313
226
514

726
651
984
672

1,595
1,068
1,914
2,022
3,041
1,931
1,831
1,750
2,400
2,225

516
266
471
447
399
436
2j6
400
500
400

525
468
1 ,154
701
468
1 ,021
580
400
700
700

Sept.—'r 2 ,600
Oct. - 3 , 3 2 5
Other issuers are extractive, railroad and other transportation, real estate
and finance, and commercial and other.
Source: Securities and Exchange Commission. Quarterly supplements are available.




COMMUNICATIONS

1,126
750
809

7,354
6,332
6,840

2,636
Jan.
1,802
Feb.
3,539
Mar.
3,170
Apr.
3,909
May
3,389
June
J u l y e/ 2 , 6 4 8
Aug- - 2 , 5 5 0

GROSS PROCEEDS BY
TYPE OF ISSUER

952
680
911
1,310
744
994
1,085
725
, 750
1,080

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

Oct. 1 thru Oct. 30, 1970

ISSUER

AMOUNT (MILLIONS

TYPE 'J

OF

MATURITY

DOLLARS)

COUPON
RATI-! OR
Ni:i 1..TERI'.ST COST \

OFFERING
YIELI)

MOODY ' : .
RAT 1 N(.

Corporates
99.5
com. stk
American Elec. Power
benf. int. 30.0
First Denver Mtg. Investors
Jersey Central Pwr. & Lt. Co. cum. pref.
25.0
stk.
33.8
cum. stk .
United Utilities, Inc.
Mass. Mutual Mtg. & Realty
conv. sub.
Investors
debs.
50.0
50.0
debs.
Otis Elevator Co.
15.0
Montana-Dakota Utilities Co. 1st. Mtg.
55.0
1st. Mtg.
Southern Calif. Gas. Co.
25.0
1st. Mtg.
Wisconsin Pwr. 6c Lt. Co.
debs.
150.0
Weyerhaeuser Co.
notes
50.0
Weyerhaeuser Co.
67.9
*Public Service Elec. & Gas Co. com. stk.
40.0
Connecticut Lt. & Pwr. Co.
1st. Mtg.
pref. stk., 20.0
Connecticut Lt. & Pwr.
Pacific Tel. & Tel. Co.
debs.
175.0
debs.
25.0
.Morton-Norwich
i
30.0
debs.
Cummins Engine Co.
25.0
bds.
Texas Electric Ser. Co.
S.F. debs., 50.0
Dresser Industries Inc.
,
S.F. debs. 30.0
Rex Chainbelt Inc.
28.8
"cum. stk.
Carolina Pwr. & Lt. Co.
debs.
50.0
Clark Equipment Co.
S.F. debs,. 100JO
General Mills Inc.
81.5
Gtd Loan
Pan American World Airways
ctfs
20.0
1st mtg
Massachusetts Elec Co
50.0
debs
Pitney - Bowes Inc.
125.0
S.F. debs
Sears, Roebuck & Co

125.0
notes
Sears, Roebuck & Co



v

__

-—
—

--

--

--

--

--

—

—

—

—

1990
1995
1990
1995
2000
2000
1976

6.75
6.50
9.25
8.85
8.88
8.63
8.13

6.75
6.50
9.15
8.85
8.85
8.63
8.13

Baa
A
Aa
Aa
A
A

2000

8.88

8.75

Aa

--

--

--

2006
1995
1995
2000
1995
1995

8.75
8.88
8.88
8.88
9.38
8.95

8.76
8.88
9.00
8.73
9.38
8.95

1976
1995
1986

8.80
8.88
11.25

8.80
I 8.87
11.25

1975
1995
1995
1975

8.50
9,00
8.63
8.13

8.25
9.05
8.67
8.15

——

—-

—

Aaa
A
A
Aaa
Baa
A
-—

A
Baa
A
A
Aa
Aa

-

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

October 1 thru October ^

ISSUER

TYPE2

AMOUNT
(MILLIONS

OF

MATURITY

DOLLARS)

COUPON
RATI: OR
NET LITER1 ST COST

OFFERING
YIELD

1970

MOODY'.
RAT INC

Corporates (cont'd)
Skelly Oil
James Talcott Inc.
*Xerox Corp.
Singer Co.
Appalachian Pwr Co.
New Jersey Natural Gas
Wisconsin Gas Co.
Continental Investment Corp.
Equitable Life Trust
Equitable Life Trust
Mountain States Tel & Tel Co.
Portland General Elec Co.
Toledo, Edison Co.
Southwestern Pub Service Co,
Michigan Wisconsin Pipe Line Co.
Illinois Pwr Co.
Northern Natural Gas Co.
Mississippi River Transmission
Corp.
First Mtg Investors




Debs
Notes
Conv debs
Debs
1st mtg
1st mtg
Debs
Debs
Benf Int
Conv debs
Debs
1st mtg
1st mtg
1st mtg
Bonds
1st mtg
Debs
Debs
Debs

25.0
25.0
155.6
100.0
70.0
15.0
15.0
30.0
75.0
75.0
150.0
20.0
35.0
15.0
40.0
35.0
60.0

1976
1976
1995
1976
1976
1995
1990
1990

8.15
9.75
6.00
8.25
8.63
9.25
10.75
9.00

8.15
9.75
6.00
8.25
8.35
9.30
10.60
9.00

Aa

1990
2010
2000
2000
1975
1990
2000
1990

6.75
9.00
9.88
9.05
8.75
9.75
9.00
9.50

6.75
9.00
9.93
9.05
8.68
9.75
9.05
9.50

35.0
1978

1990
9.25

9.75
9.25

9.75

--

—

--

——

A
A
A
Ba
——

Aaa
Ba
-i*.
A
A
A
• ——

'

y

,

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

§

Oct. 1, thru Oct. 30
1
ISSUER

State and Local
Hudson County, H.J A
Alaska State Housing Auth.
Maryland, State of
Coastal Industrial Wtr. Auth.
Texas
University of Houston, Texas
Minneapolis, Minn.
Shelby County, Tenn.
Alexandria, Va.
Anne Arundel Co., Md.
Atlanta, Ga.
Tacoma, Wash.
Alabama Highway, Auth.
California, State of
St. Louis, Mo.
Los Angeles Co. Flood Control
District Calif.
Genesee Co. Comm. Coll. Mich.
Hawaii Co., Hawaii
Fort Worth, Tex.
Jacksonville, Fla.
Penna State of
Snohomish, Co. PuD#l, Wash.
Seattle Dept. Light & Power
,E1 Paso, Texas
Chicago Pub Bldg Coram, 111.
Cleveland, Ohio
Texas, State of
New York City
Oklahoma,
State of

St. Paul ISD #625, Minn.



TYPE 2

AMOUNT
(MILLIONS
OF
DOLLARS)

.

|

MATURITY

COUPON
1
RATE OR
NET INTER-• !
i;.c
EST COST
J YIELD

MOODY'S
RATING

11.1
29.0
42.1

1971-1988
1972-85
1973-85

7.28
6.77
5.29

4.75-7.40
4.75-7.25
4.00-5.90

S.F. Rev. 17.0
Rev.
10.0
G.O.
10.6
12.5
G.O.
13.1
G.O.
G.O.
14.0
Rev.
20.0
Rev.
25.0
25.0
Rev.
100.0
G.O.

2007
1973-2000
1971-90
1971-95
1971-87
1971-2000
1972-2000
1973-2007
1971-87
1971-90

7.06
7.11
4.79-5.64
5.82
5.65
6.14
7.43
7.20
6.35
5.57

7.08
4.70-7.25
3.95-6.25
3.90-6.70
4.00-6.65
4.75-7.70
4.80-7.35
4.10-7.00
3.85-6.30

Rev.

1972-05

7.66

4.50-7.60 Baa

G. 0.
Rev.
G.O.

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

10.0
10.0
11.5
10.0
• 10.3
52.0
50.0
24.0
20* 0
10.0
52.0
39.5
20.0
233.8
26.1
10.3

1972-95
5.69
3.80-6.20
1972-1995 : 6.(29
4.00-7.00
1973-90
5.88
- 5.20-6.65
1971-95
5.57
3/70-6.40
1972-02
7.17
4.40-7.35
6.33
1973-00
4.15-6.60
1977-2004
6.88
5.00-7.20
1973-2005
7.18
4.50-7.25
1972-199Q
5.58
4.00-6.25
1973-90
6.42
4.20-7.00
1972-96
6.64
4.10-7.00
1979-95
5.82
4,60-6.20
1972-2001
7.15
4.85-7.40
5.68
3.80-6.35
1973-92
1971-90 4.71+5.72+5*66 3.75-6.20

Baa
Aaa
A-l
A
Aaa
Aa
A
A
Baa
Baa-1
A
Aa

A
Aa
A
A-l
Aa
A
A-l
A-l
A
Aaa
Baa-1
Aa
Aa

1970

(Other than U.S. Treasury)1

October 26 thru October 30, 1970
AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

COUPON
RATE OR
NET INTEREST COST

|
| OFFERI ING
| YIELD

MOODY'S
RATING

State and Local
Pittsburgh, Pa.
Seattle
Memphis, Tenn.
Maine
Louisiana
Houston, Tex.
New York State Dormitory Auth
Fairfax, Va.
Mercer Co. N.J.
San Francisco Stadium Inc.
Grays Harbor Co. Wash, Pub
Utility District # 1
Dover, Delaware
Houston, Tex.
NOrth Broward Hosp. Dist. Fla.
North Texas State Utiiv.
Miami, Fla.
Puerto Rico Highway Auth.
Other
Federal Home Loan Mtg Corp.
HAA
Inter-American Development BK
Federal Home Loan Banks
*
v
2

3

6.0.
G.O.
G.O.
G.O.
G.O.
Rev.
G.O.
G.O.
G.O.
Rev.
Rev.
Rev.
Rev.
Rev.
Rev.
G.O.
G.O.
Bonds
Bonds
Bonds
Con. bds

10.5
23.2
34.0
14.6
25.0
25.0
14.2
33.2
12.5
16.1
10.0
12.1
10.0
10.0
10.0
12.5
50.0
315.0
32.0
100.0
450.0

1971-1990
1972-1910
1971-1995
1971-1990
1971-1995
1971-1990
1973-1902
1971-1985
1971-1990
1972-2005
1988-2000
1972-2010
1975-1990
1971-2000
1972-1990
1972-99499
1995
1972-1911
1995
1973

5.62
7.32
5.30
5.45
6.00
5.66
7.13
5.82
5.46
7.21
6.93
•

7.56
7.23
7.17
5.59
6.26+7.16
8.60
8.63
7.20

3.75-6.50
4.00-7.40
3.80-6.00
3.75-6.50
3.90-7.00
3.80-6.70
4.25-7.40
4.10-7.25
»—

A-l
Aaa
A-l
A-l
Baa
Aa

'

4.25-7.34
6.90-7.25
4.40-7.70
5.50-7.60
4.00-7.60
4.00-7.10
—

--

Baa
—

A
A-l
A

8.60
3.50-5.95
8.70
7.20

Rights offering.
corporate and other security offerings of $15 million and over;
State and local security offerings of $10 million and over.
In case of State and local government securities, G.O. denotes gent-ral obligation;
i<ev.-Ut., revenue obligations secured only by income from public utilities;
Rev'.-Q.-Ut. s revenue bonds secured only by income from quasi-utilities; Rev.-S.l.,
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-guaranteed issues by Federal Agencies.

Includes




—

Aaa

TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury)1
(continued)
As o f O c t o b e r 3 0 , 1970

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

Corporates
GAC Properties Credit Inc. Debs.
)ebs..
Beneficial Corp.
Great American Mtg.
! )ebs.
Investors
Debs.
Belden Corp.
1st. Mtg.
Louisiana Power
lotes
Ford Motor Credit Co.
)ebs.
Ford Motor Credit Co.
Vermont Yankee Nuclear
1st Mtg.
Power Co.
General Tel. Co. of the N.W .ids.
1st. Mtg.
Florida Pwr. Corp.
Debs.
Gulf Oil Corp.
Cleveland Electric Illuminating Co.
1st. Mtg.
Debs.
American Tel. & Tel.
American T-l. & Tel.
Notes
City Investment Co.
Debs.
Consumers Pwr. Co.
1st. Mtg.
).F. debs.
Republic Steel Corp.
Pubix- Service <>-. of

50.0
75.0
26.0
16.0
20.0
125.0
75.0

Nov. 2
Nov. 2
Nov. 4
Nov. 5
Nov. 5

80.0
15.0
40.0
200.0

Nov. 5
Nov. 5
Nov. 5
Nov. 5

75.0
350.0
150.0
40.0
55.0
100.0

Nov.
Nov.
Nov.
Nov.
Nov.
Nov.

20.0
1st. Mtg.
Lst. & Refunding
100.0
Mtg.
Alabama Pwr. Co.
Lst. Mtg.
60.0
50.0
':V.^v3CO In.
Notes
,$onds
25.0
General Tel. & Tel. Co. Ind.^onds
20.0
Houston Natural Gas Corp.
Debs.
23.0
Lst. Mtg.
Citizens Utilities Co.
60.0
Cincinnati Gas & Elec. Co. Lst. Mtg.
75.0
Public Service Elec. & Gas Debs.
Columbus & Southern Ohio
25.0
Electric Co.
Lst Mtg.
150.0
South Ce;._ral Bell Tele. C Debs.
20.4
Debs.
General Pub. Utilities
58.0
General Pub. Utilities
Debs.
150.0
Debs.
*Sun Oil Co.
] Totes
*Sun Oil Co.
50.0
Delmarva Pwr. Register
st. Mtg. Coll.
30.0
trst. bonds
20.0
Houston Natural Gas Corp. Debs.
3.F. debs.
40.0
NCNB
12om. Stk.
110-137.5 mil.
Tenneco
60.0
bds.
*GATC
100.0
Southern Calif. Edison Co. .st. Ref. Mtg.
New Hampshire
Pacific G&E Co.




2
2

Nov.
Nov.

9
10
10
10
10
10

Nov. 12
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.

16
17
17
17
17
18
18
18

Nov. 19
Nov. 23
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Dec. 3

TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. TreasuryX1
(continued)
* 8 of October 30, 1970

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

Coroorates
New York Telephone Co.
Dow Chemical Co.




1 s t . Htg.
Debs,

200.0
1^0.0

Dec.
. Nov.

3

TABLE 7: Forthcoming Large Longrterm,Public SecurityOfferings for New Capital
(Other than U.S. Treasury)1

'
' TYPE

ISSUER

' AMOUNT
(MILLIONS
OF
DOLLARS)

1970

APPROXIMATE DATE
OF OFFERING

State and Local
Dallas-Ft. Worth Reg. Arpt. Tex Rev.
G.O.
Philadelphia S/D Pa.
G.O.
Massachusetts, State of
Rev.
Dade Co. Fla.
G.O.
Detroit Mich.
G.O.
Detroit City S/D, Mich.
G.O.
South Carolina
Rev.
Springfield, 111.
Pennsylvania St Pub. Sch. Bldg.
Rev.
Authority
Rev.
New York State Power Auth.
G.O.
Delaware
Mass. Health & Ed. Fac. Auth. Rev.
G.O.
Ohio, State of
Illinois State Toll Hwy. Auth. G.O.
Rev.
Los Angeles Dept of Airports
Los Angeles Comm. ReDev. Agcy.

California
Oakland Co., Mich.
DeKalb Co., Ga«
Los Angeles Dept of Wtr. & Pwr.
California
Nassau Co. N.Y.
San Francisco, California
Los Angeles Harbor Dept. Calif.
Sacramento Municipal Utility
District, Calif.

50.0
, 45.4
63.0
40.0
18.0
30.0
36.7
14.0
29.4
120.0
30.0
10.5
75.0
135.0
60.0

Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.

10
10
12
12
17
17
18

5

f
>•

t
>

I

G.O.

10.0
35.9
15.2

Nov. 18
Nov. 23
Nov. 24

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

39.0
41.2
52.9
16.0

Dec. 2
Dec. 9
Dec. 14
Dec. 16

1
|

Rev.

50.0

Jan. 20

1

G.P.
G.O.

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.




I
b
i

2
A
4
5
10
10
10
10

L
1
f.

TABLE 8: Stock Prices and Volume

S&P
5003

DATE

STOCK PRICES1
D.J. - IND.

AMEX

l

TRADING
4

AMEX

-NYSE

45.4(6/7)
14.1(2/23)

1968 - High
Low

108.37(11/29) 985.21(12/13)
87.72(3/5) 825.13 (3/21)

33.24(12/20) 82.61(6/7)
21.97(3/25) 34.0(2/23)

1969 - High
Low

106.16(5/14) 968.85(5/14)
89.20(7/17) 769.93(12/17)

32.91(1/3)
25.02(7/29)

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

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

1970 - High
Low

93.46(1/5) 811.31(1/5)
69.29(5/26) 631.16(5/26)

27.02(1/8)
19.36(5/27)

80.7(5/26)
35.1(7/3)

28.4(1/2)
8.3(7/3)

1970 - Sept. 25 83.97

76^.77

22.34

83.4

26.4

1970 - Oct.

766.16
768.69
763.35
759.38
755.61

22.79
22.63
22.39
22.11
22.91

72.2
84.1
50.5
51.1
50.0

23.5
22.7
13.7
12.7
12.9

2 85.16
9 85.08
16 84.28
23 83.77
30 85.25

1. Figures other than highs and lows are Fridays only. Highs and lows are
for the year and are not necessarily for Fridays.
2.

1941-43 =10.

3.

Average dollar value of shares listed.

4. NYSE is the New York Stock Exchange; AMEX is the American Stock Exchange.
Total number of shares traded per week (millions of shares). Trading is
normally conducted for 5-1/2 hours per day and 5 days per week, or 27-1/2
hours per week. In recent years, however, abbreviated trading to the
extent, and over the time periods, shown below;

From:
August 8, 1967
January 22, 1968
June 30j 1968
January 3, 1969
July 7, 1969
January 2, 1970




Through:
August 20, 1967
March 1, 1968
December 31, 1968
July 3, 1969
December 31, 1969
. May 1, 1970

Hours/
Day
4
4
5-1/2
4
4-1/2
5

Days/
Week
5
5
4
5
5
5

Hours/
Week
20
20
22
20
22-1/2
25

1

|

H

15

STOCK PRICES AND TRADING VOLUME
AM EX

36 ' STOCK PRICES
32

|
'

'1

•

| I I I i i I i i i 1 i | i I i i M It i l l

AMEX PRICE LEVEL INDEX A / 1

-

J
-

D.J.
(Ind.)

Weekly
:

—
-

S&P's 500

—
-

'W

V

\

/

V

D.J. IND.

\

NX

1280 128

1200 120

1120 112

\j^J \a

^

/V

S&P
(500)

Y

\

1040 104

960

96

880

88

A_

80
72

Millions of shares

60
A M EX T R A D I N G V O L U M E (TOTAL FOR WEEK)

!

i

NYSE TRADING VOLUME (TOTAL FOR WEEK)




TABLE 9: Security Credit

END OF PERIOD

CREDIT EXTENDED TO
MARGIN CUSTOMERS BY:
BANKS 2 | TOTAL
BROKERS1

CUSTOMERS'
NET DEBIT
BALANCES

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

Outstanding;
1969—Aug.
Sept.
Oct.
Nov.
Dec.

5,000
4,940
5,040
5,070
4,970

2,670
2,620
2,570
2,520
2,580

7,670
7,560
7,610
7,590
7,550

7,019
7,039
7,243
7,111
7,445

2,577
2,579
2,753
2,613
2,803

4,442
4,460
4,490
4,498
4,642

1970—Jan.
Feb.
Mar.
Apr.
May
June
July
Aug. r/
Sept.
Change in
Outstanding:

4,680
4,570
4,520
4,360
4,160
4,150
3,860
3,810
3,920

2,430
2,370
2,370
2,330
2,290
2,290
2,290
2,300
2,330

7,110
6,940
6,890
6,690
6,450
6,150
6,080
6,110
6,250

6,683
6,562
6,353
5,985
5,433
5,281
(4)

2,626
2,563
2,441
2,248
2,222
2,009
(5) 2,180
2,083
2,236

4,057
4,099
3,912
3,724
3,211
3,272
(4)

1969—June
July
Aug.
Sept.
Oct.
Nov.
Dec.

-330
-170
-170
-60
100
30
-100

-30
-40
-30
-50
-50
-50
60

-360
-210
-200
-110
50
-20
-40

-260
-699
-496
20
204
-132
334

1
-302
-206
2
174
-140
190

-261
-397
-290
18
30
8
144 .

1970—Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.

-290
-110
-50
-160
200
-300
-70
20
110

-150
-40

-440
-170 ^
-50
-200
240
-300
-70
30
140

-762
-121
-209
-368
-552"
-152

-177
-163
-22
-193
-26
-213
171
97
153

-585
42
-187
-188
-513
-61

1
2
3

^

—

-40
-40
--

10
30

(4)
(4)

——
--

(4)
(4)

——
. -—

..

Margin debt, as .reported by the New York Stock Exchange. Although margin debt
until March 1968 included loans secured by U.S. governments, the amount of such
loans included is thought to have been small.
"Bank loans to others than brokers and dealers for purchasing or carrying securities other than U.S. governments."
The difference between customers' net debit balances and-customers'net free credit balances, this figure represents the net credit extended by brokers and
dealers to the nonfinancial public.
NOTE: With the exception of bank loan data, figures are supplied by the New York
Stock Exchange and are end of month data. Bank loans are for weekly reporting
large commercial banks. Broker data includes loans for regulated securities; bank
data includes loans for the purpose of purchasing or carrying any security, whether
regulated or not. 4 Series discontinued 5 Changes in series.




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

DATE
\

5,082
4,208
2,551

1967
1968
1969
1969 -

1970 -

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

July
Aug.
Sept.
July
Aug. jcZ
Sept. p/

-164
95
303
297
176
500

9.3
7.1
. 4.0

—

,—
—

2,376
1,143
-747
-266
24
-269
174
81
n.a.

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

TOTAL
DEPOSITS
ANNUAL
NET
GROWTH
RATE 1
FLOW

Not Seasonally Adjusted
6,129
10,649
9.4
2,738
6.0
7,399
4,020
-1,003
3.1

15,371
11,607
6,571

9.4
6.3
3.4

-1,122
-25
-104

-1,274
87
1,182

—

485
517
n.a.

840
726
2,331

-1,110
-8
879
543
550
1,831

—

—
—
——
—
--

NET
NEW
MONEY 2

8,505
3,881
-1,750
1,388
-1
-373
659
598
n.a.

Seasonally adjusted
1970 -

1
2
3

Apr.
May
June
July
. Aug. jcf
Sept.p/

371
360
373
441
279
343

6.6
6.4
6.6
7.8
4.9
6.0

973
637
891
1,680
785
1,394

8.6
5.6
7.8
14.6
6.8
11.0

——
---

-—

1,344
997
1,264
2,121
1,064
1,737

8.0
5.9
7.4
12.4
6.1
10.0

—

—
—
-—

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.




SAVINGS FLOWS (seasonally adjusted)

[Millions of dollars

Monthly

2000

1600
TOTAL

1200
800
400

400
1200
SAVINGS & LOANS

800
400

400
800
MUTUAL SAVINGS BANKS

400

400
1966




1967

1968

1969

1970

TABLE 11: Mortgage Commitments at Selected Thrift Institutions

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

DATE

TOTAL

1

_NET^ CHANGE
ALL
SAVINGS &
LOAN
ASSOCIATIONS

MUTUAL
SAVINGS
BANKS
(N.Y. STATE)

(Billions of Dollars, Seasonally Adjusted) 1/

6.8

3.1
3.0

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

9.9
9.5
9.2
8.9

8.6

5.9
5.8

1970 - Jan.
Feb.
Mar.
Apr.
May
June
July

8.2

5.6
5.4
5.2
5.4
5.8

2.6

6.5

2.0

1

8.4

7.9
7.6
7.8

8.0
8.2
8.6

6.5
6.4

6.1

6.1

2.8
2.7
2.7

2.6
2.5
2.5
2.4

2.2
2.1

.32
.36
.31
.33
.24
.25

-.22
-.24

.17
.30

-.22
-.23

.13
.24

.26

.26
.22

.35

-.18
-.23

-.18
-.12

-.21
.38
.30
.40

Based on data from Federal Home Loan Bank Board and Savings Banks Associations of
New York State. 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. Mutual Savings Banks and total data
include building loans beginning August 1967.




-.10

-.12
-.13
-.09

-.06
-.13

.04
-.07
-.05
-.13
-.14
-.09
-.05

MORTGAGE COMMITMENTS OUTSTANDING (seasonally adjusted)
Monthly

Billions of dollars

nm

N.Y.MSB'S

Includes building loans beginning August 1967

1960




1962

1964

1966

1968

1970

22

TABLE 12: Net Change in Mortgage Holdings 1

TOTAL
INCLUDING
FNMA-GNMA

FINANCIAL INSTITUTIONS
LIFE
MUTUAL 'SAVINGS &
TOTAL COMMERCIAL
INSURANCE
SAVINGS
LOAN
BANKS
COMPANIES
BANKS
ASSOC.
Not Seasonally Adlusted

1966
1967
1968 ^ —
1969

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

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

1969 - May
June
July
Aug.
1970 - May
June
July
Aug.

2,161
2,385
1,688
2,'124
1,634
2,32 9
2,089
1,967

1,976
2,163
1,395
1,596
1,256
1,932
1,626
1,568

1,698
1,910
1,876
1,734
1,652
1,906

1,364
1,380
1,365
1,166
1,069
1,292

DATE

•

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

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

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

600
575
200
400
200
400
200
200
Seasonally
151
310
383
,244
237
347

.

233
230
215
181
144
221
160
182
Adiusted
181
157
137
124
146
235

FNMA-GNMA

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

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

988
1,216
865
844
723
1,128
1,079
1,111

155
142
115
171
189
183
187
75

185
222
293
528
378
397
463
399

859
720
654
627
547
576

173
193
191
171
139
134

334
530
511
568
583
614

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

i

i
ir
:
i

1970 - Jan.
1,493
937
288
24
400
225
556
<
Feb.
1,604
285
1,105
143
436
241
499
1
1,228
Mar.
712
144
197
276
125
516
Apr.
1,386
892
205
141
357
189
494
May
1,484
1,066
133
160
588
418
r
196
220
1,649
2,103
June
269
225
935
454
j,
.2,105
128
1,599
245
July
151
1,075
506
*
Aug.
110
158
54
1,705
| 1,307
985
398
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.
j
of Mutual Savings Banks, Federal Home Loan Bank Board, Institute of Life Insurance
and, through August 1968, the Federal National Mortgage Association, and thereafter by FNMA and the Government National Mortgage Association. Data for mutual
savings banks and for Life Insurance companies may differ somewhat from those
derived from regular quarterly series because of minor conceptual differences for
which adjustments are not made in the monthly series. Altogether, these groups
accounted for 87 per cent of the net increase estimated for all holders in 1967.




NET CHANGE IN MORTGAGE HOLDINGS (seasonally adjusted)
1

Monthly

Billions of dollars

3.0

2.5

TOTAL, INCL. FNMA • GNMA

2.0

FINANCIAL INSTITUTIONS

1.5

1.0

1967




1968

1969

1970

TABLE 13: Net Increases in Mortgage Debt Outstanding

1

Billions of dollars, SAAR ?
QUARTER

TOTAL

RESIDENTIAL3

1- to 4- MULTIFAMILY
FAMILY

COMMERCIAL

MULTI-AND
COMMERCIAL

1966 - IIIp
IVp

18.7
15.2

11.0
9.2

8.4
7.0

2.6
2.1

5.5
4.2

8.2
6.2

FARM
2.2
1.8

-> 1967 - Ip
up
IIIp
IVp

15.6
20.5
27.0
27.5

10.0
13.8
19.6
19.9

6.8
10.5
15.7
16.0

3.2
3.4
3.9
3.9

3.8
4.9
4.9
4.9

7.2
8.2
8.7
8.8

1.8
1.8
2.5
2.7

1968 - Ip
IIP
IIIp

27.1
25.9
26.5

18.4
18.0
18.2

15.4
14.8
14.6

3.0
3.2
3.5

6.3
5.7
6.5

9.4
8.9
10.1-

2.3
2.2
1.8

1969 - Ip
up
IIIp
IVp
1
1970 - Ip

30.4
28.5
27.0
25.6

22.1
21.2
19.9
18.6

17.9
16.5
15.2
13.1

4.2
4.7
4.7
5.5

6.1
5.0
5.3
5.8

10.3
9.6
10.0
11.3

2.2
2.3
1.8
1.3

r
C

20.3
23.8

14.0
17.5

9.3
11.9

4.8
5.5

4.9
4.7

9.6
10.2

1.5
1.6

i

IIP

i
i

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




NET INCREASES IN MORTGAGE DEBT OUTSTANDING
Quarterly

Billions of dollars, seasonally adjusted annual rate

TOTAL

24

TOTAL
RESIDENTIAL

1-4 FAMILY

COMMERCIAL

MULTIFAMILY

1966




1968

1970

TABLE 14: FNMA Weekly "Auction" Results

WEEK

ENDED

COMMITMENTS IN $ MILLIONS
IMPLICIT YIELD2(per cent)
ACCEPTED
1-YEARtl 901-YEAR 1
6TOTAL
TOTAL
6& OVER
OFFERED
DAY
DAY MONTH & OVER
MONTH

June

1
15
29

. 224.2
249.7
156.3

113.8
127.9
98.9

31.1
34.2
30.6

71.4
86.7
56.5

11.3
7.0
11.8

9.20
9.27
9.32

9.24
9.30
9.33

9.27
9.31
9.34

July

13
27

286.2
323.8

113.3
150.4

25.0
37.0

73.,0
91,,1

15.3
22.3

9.20
9.10

9.21
9.12

9.22
9.12

Aug.

10
24

441.3
575.0

180.2
215.1

41.4
48.8

91..0
124.,4

47.8
41.9

9.03
9.03

9.03
9.03

9.04
9.03

Sept

8
21

384.2
207.8

200.1
195.3

37.5
33.7

9.06
9.01

5
19

267.5
352.5

14.5
8.4

8.90
8.89

9.04
9.01
8.92
8.90

9.04
9.02

Oct.

45.6 117..0
40.1 121,.5
73.,1
149.8 62.2
88.1
14 9, 7 53.2

Nov.

2

8.97
8.95

(150)2/

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

For "proposed construction" of new homes only.

2

Average secondary market yield after allowance for commitment fee and
required purchase and holding of FNMA stock, assuming prepayment of
15 years for 30-year Government-underwritten mortgages. Yields shown
are gross, before deduction of 38 basis points fee paid by investors
to servicers. Prior to August 10, 1970 the servicing fee was 50 basis points.

3

FNMA announced limit of accepted bids for next week's auction.




27

FNMA "AUCTION" RESULTS
$ Millions

AMOUNT OF ACCEPTED BIDS
BY COMMITMENT PERIOD

200

,

150
6 MONTHS
100

1 YEAR
AND OVER

50

IMPLICIT YIELD
6-MONTH COMMITMENTS
—

10

" n

i

i

i

i

i

i

i

i

i

i

I

I

I

I

I

i

i
$ Millions

800

600
TOTAL BIDS RECEIVED
400

200
TOTAL BIDS ACCEPTED
JUNE

AUG.

OCT.

1969




DEC.

FEB.

APR.

JUNE

1970

AUG.

OCT.

DEC.

TABLE 15: Private Housing Starts and Permits

STARTS
DATE

SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE

TOTAL

Sept.
Oct.
Nov.
Dec.

1,481
1,390
1,280
1,402

828
766
762
776

653
624
518
626

129.3
123.4
94.6
84.1

Jan.
Feb.
Mar.
Apr.
May
June
July
Aug. p
Sept.p

1,059
1,306
1,392
1,224
1,242
1,393
1,603
1,412
1,504

577
725
708
697
728
835
827
830
884

482
581
684
527
514
558
776
582
620

66.4
74.3
114.7
128.4
125.0
135.2
140.8
127.4
130.8

1

2

UNADJUSTED
TYP E OF FINANCING
FHA VA
OTHER

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2

18.8
23.2

4.8
5.0
3.9
4.2

106.2
93.3
74.7
57.9

1,201
1,183
1,191
1,239

16.5
17.5
25.2
32.4
37.1
40.7
43.4
34.1
i
ci.a.

3.4
3.9
4.8
5.4
5.2
5.1
5.3
5.7
RE-

46.5
52.9
84.7
90.6
80.8
89.4
92.1
87.7
RE-

1,013
1,137
1,099
1,263
1,321
1,306
1,275
1,326
1,368

18.3
25.1

i
:
;
%
f
:

Total starts are Census estimates including farm for both permit-issuing and
noii-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 guari
antee the mortgages. As reported by FHA and VA, a unit is started when a field
;
office receives the first compliance inspection report, which is made before
[
footings are poured in some cases but normally after the foundations have been
f
completed. Other starts are derived as a residual, although total and FHA and
VA starts are hot strictly comparable in concept or timing; other starts in!
elude 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.




PRIVATE HOUSING STARTS AND PERMITS
Monthly, annual rates

Millions of units

SEASONALLY ADJUSTED
2.0

HOUSING STARTS

1.6

1.2
BUILDING PERMITS

PER CENT OF UNADJUSTED TOTAL STARTS

MULTI-FAMILY

GOVERNMENT UNDERWRITTEN
1964




1966

1968

1970

TABLE 16: Mortgage and Bond Yields

DATE

1959-60 - High
1961-66 - Low
1966 - High
1967 - High
- Low
1968 - High
Low
1969 - High
Low
1970 -» Apr.
May
June
July
Aug.
Sept.
1

1

FHA
MORTGAGES

NEW
CONVEN- ... SPREAD BETIONAL
TWEEN YIELDS Aaa CORPORATE
ON CONV. &
MORT25-YEAR 30-YEAR GAGES
FHA MORTBONDS
4
3
GAGES
,26
,43
73

n.a.
n.a.

5.44
6.81
6.81
6.29
7.52
6.78
8.62
7.99
9.10
9.11
9.16
9.11
9.07
9.01

6.30
5.80
6.70
6.70
6.40
7.40
6.75
8.35
7.55

.23
.25
.30
.11
.12
.12
.27
.40
.13

5.25
4.41
5.82
6.51
5.18
6.79
6.15
8.75
6.91

8.55
8.55
8.55

.55
.56

8.60
9.10
9.11
8.63
8.48
8.42

8.60
8.60

8.50

.61

.51
.47
.49

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES
1.69
.77
1.16
1.28
.27
1.20

.26

1.08
-.13
.50

.01

.05
.48
.59
.59

Neither i. .; ..gage nor bond yields include allowance for servicing . "ts which are
much higher for mortgages than for bonds. Generally, bonds pay interest semiannually; mortgages, monthly. Mortgage yields, if computed as equivalent to
a semi-annual interest investment, would be slightly higher than given in the
,
table.
2 Basee on FHA-field-office opinions about average bid prices in the private
secondary market for new-home mortgages for immediate delivery. Separate
data available for 25-year and--beginning July 1961--30-year mortgages with
minimum downpayments, weighted by probable volume of transactions. Yields
computed by FHA, assuming prepayment period of 12 years for 25-year mortgages
and 15 years for 30-year mortgages. Over the period for which they can be
compared, the movement of the two mortgage yield series has been similar.
I
Dashed lines indicate periods of adjustment to changes in contractual interest
rates.
3 Based on FRA-field-office opinion on typical interest rates (rounded) on convcr.'rional first mortgages prevailing in the market areas of insuring office
cities. Beginning with April 1960, rate relates only to new-home mortgages;
prior to that date, rate related to both new as well as existing-home mortgages. Dashed line indicates this change in the series.
4 See note for Table 1.




AND BOND YIELDS
12

11

1Q

9

8

7

HOME MORTGAGES:

6

CONVENTIONAL y

5

Aaa CORPORATE BONDS:
NEW ISSUES

-

4

Basis

SPREAD(FHA MORTGAGE VS. NEW ISSUE Aaa,CORPORATE.BON PS)

200

100
+
0

100
1962




1964

1966

1968

1970

32
TABLE 17: Conventional Mortgage Terms

DATE

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

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

1

EXISTING HOMES
CON- FEES &
LOAN 7
TRACT CHARGES EFFEC- MATU- PRICE LOAN
(PER
RATE
TIVE RITY RATIO AMT.
(PER
CENT) RATE (YEARS) (PER ($000)
3
CENT)
CENT)
2
4

1969
7.86
Aug.
Sept. 7.89
Oct.
7.99
Nov.
7.97
Dec.
8.07

0.86
0.92
0.89
0.96
1.06

8.00
8.05
8.13
8.13
8.25

25.2
25.3
25.3
25.3
25.4

72.3
72.9
72.8
72.8
71.9

24.3
25.0
24.6
24.6
25.0

7.90
7.98
8.00
8.00
8.08

0.93
0.91
0.9b
0.90
0.93

8.05
8.13
8.15
8.15
8.24

22.6
22.2
22.6
22.6
22.9

71.2
70.7
70.4
70.4
70.6

19.8
19.2
19.5
20.1
20.8

1.08
1.09
1.11
1.02
0.98
0.99
1.01
0.99

8.34
8.41
8.47
8.40
8.45
8.48
8.49
8.51

25.0
24.2
25.0
24.8
25.3
25.1
25.1
24.9

69.3
71.8
71.1
71.1
71.7
71,3
71.5
71.8

25.1
24.9
25.1
24.5
25.3
25.6
24.9
25.5

8.13
8.23
8.26
8.20
8.18
8.19
8.21
8.25

0.94
1.02
0.98
0.90
0.94
0.98
0.95
0.89

8.29
8.41
8.43
8.35
8.34
8.36
8.37
8.40

22.4
22.4
22.6
22.8
22.8
23.0
23.1
23.1

70.3
70.2
70.4
70.4
70.3
71.5
71.5
71.7

20.5
20.4
20.6
20.4
21.1
21.5
21.7
21.4

^ 1970
Jan.
Feb.
Mar.
Apr.
May
June
July—7
Aug.

8.16
8.23
8.29
8.23
8.28
8.31
8.32
8r&5

:

v
,
;
;
i

1

Compiled by Federal Home Loan Bank Board in cooperation with Federal Deposit Insurance
Corporation. Data are weighted averages based on probability sample survey of characteristics of conventional first mortgages originated by major institutional lender
groups (including mortgage companies) for purchase of single family homes. Data ex- .
elude loans for refinancing, reconditioning or modernization; construction loans to
home-builders; and permanent loans which are coupled with construction loans to ownerbuilders. Related series on conventional mortgage rates only, based on unweighted
opinions of field-office directors of the Federal Housing Administration, are available
somewhat sooner than the results of the FHLBB-FDIC survey, and are included-in the case
of new home mortgage rates--in Table 16.
\
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.




?
\
j.
f
'
I
i
|
)
:
j

CONVENTIONAL MORTGAGE TERMS
Monthly

MATURITY

NEW
25

EXISTING
20

l i ri i i i i i i i i I i i i i i i i

mii

15

80

LOAN/PR ICE RATIO
-

NEW

75
x v ^ v x

EXISTING
70

'

I

1

1

1

1 i i ii iI Ii i i i 1 i i i i II i II i i

65

Thousands of dol

LOAN AMOUNT
-

30

NEW
20
^

—

^

EXISTING

^
10
1

I

1964




I
1966

1

•
1968

I M M M II 1 1 1 1 1 1 1 1 II II 1 II
1970
* CHANGE IN SERIES