Full text of H.16 Capital Market Developments : November 9, 1970
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DECONTROLLED AFTER SIX MOHTHS.
L . 5 . 8 Confidential (F.R.)
|\UV
November 9, 1970
i.1
. wt-
TTCAPITAL
MARKET
DEVELOPMENTS
Capital Markets Section, Division of Research and Statistics,
V Board of Governors of the Federal Reserve System, Washington, D. C.
/- N
.
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
WEEK ENDING:
YIELDS
MOODY'S
SEASONED
NEW ISSUE1
Aaa
CORPORATE BOND MARKET
2
VOLUME
PER CENT
GROSS
SOLD BY END
BONDS SCHEDULED
OFFERINGS
OF WEEK
WITHIN 28 DAYS
1970 - Oct.
2
9
16
23
30
8.37
8.35
8.53
8.64
8.77
8.05
8.02
8.01
8.03
8.07
495
469
490
652
536
70
81
89
88
93
1,178
1,179
1,237
1,617
1,326
Nov.
6
13
8.63
8.09
858
850e
90
2,231
WEEK ENDING:
1970 - Oct.
Nov.
YIELDS
MOODY'S
BOND BUYER
SEASONED
SEASONED 20
Aaa
BOND INDEX
2
9
16
23
30
6.15
6.15
6.10
6.10
5.85
6
13
6.00
.
MUNICIPAL BOND MARKET
VOLUME2
PER CENT
GROSS
SOLD BY END
BONDS SCHEDULED
OF WEEK
WITHIN 28 DAYS
OFFERINGS
6.39
6.38
6.35
6.45
6.40 -
346
450
346
668
454
77
71
68
59
88
6.28
280
404e
72
1,516
1,148
1,138
934
865
840
n.a.
1 Derived by adjusting to a Aaa basis, new issues of publicly-offeted 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
/
TABLE 2: Details on Inventories
AMOUNT
(MIL . $)
DATE
OFFERED
80.0
40.0
125.0
20.,0
35.,0
25.,0
50.,0
11/5
11/5
11/5
11/4
10/29
10/22
10/15
OFFERED
CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK
ORIGINAL RATING AND
YIELD CALL PROTECTION
COUPON
ISSUER
DATE
| RELEXSED
9-5/8
9.00
8-3/8
9-3/8
9.75
9.75
8.80
Vermont Yankee
Florida Pwr
Ford Motor Credit
Louisiana P & L
Miss River Trans.
James Talcott
Clark Equip. Credit
\
9.45
8.83
8.30
9.20
9.75
9.75
8.80
A
Aa
——
A
—
5
5
6
5
5
yrs
yrs
yrs
yrs
yrs
—
-•
A
5 yrs
ESTIMATED PROPORTION SOLD
40%
40%
90%\
75%
70%
70%
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
1
IN SYNDICATE
DATE
1970 - Oct.
1
Nov.
9
16
23
30
645
635
798
732
202
177
372
218
6
675
154
CORPORATES
IN SYNDICATE
,
95
93
112
88
105
N.C. - No call protection.
All figures in millions of dollars. Blue List is daily average for week ended Friday, except for latest week
which is daily average of three days ended Wednesday. All other figures are as of Friday.
BONDS IN SYNDICATE
Friday figures
Millions of dollars
CORPORATE BONDS IN SYNDICATE
200
100
MUNICIPAL BONDS IN SYNDICATE .
300
200
100
SEPT.
DEC.
'68
MAR.
JUN.
1969
SEPT.
DEC.
MAR.
JUN.
1970
SEPT.
DEC.
/
TABLE 3: High Grade Bond Yields
DATE
NEW
CORPORATE
Aaa 1
MOODY'S SEASONED
CORPORATE
Aaa 2
U.S. GOVERNMENT
20-YEAR
CONSTANT
MATURITIES 3
BOND
BUYER'S
SEASONED
MUNICIPALS 4
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)
6.97 (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)
1970 - Oct.
9
16
23
30
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
Nov.
6
8.63
8.09
6.79
6.28
1
New corporate issues, with call protection, adjusted (as described in
footnote 1 of Table 1) to a Aaa basis.
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.
2
HIGH GRADE BOND YIELDS
NEW CORPORATE Aaa
MOODY'S V X
CORPORATE Aaa
U S. GOVT. 20-YR.
CONSTANT MATURITIES
BOND BUYER MUNICIPAL
1966
1967
1968
1969
1970
TABLE 4: Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
GROSS PROCEEDS
1
STATE AND LOCAL 2
CORPORATE
PERIOD
1970
1969
1968
2,636
1,802
3,539
2,075
2,045
2,098
1,771
1,608
1,799
3,170
3,909
3,389
2,748
2,076
2,530
July
August "
September
2,648
2,550e
3,600e
October
November
December ^
January
February
March
April
May
June
1st
2nd
3rd
4th
;
Quarter
Quarter
Quarter
Quarter
1st half
Three quarters
Year
1970
1969
1968
1
1
j
1,340
1,214
1,551
1,262
987
538
1,178*
1,158 f
1,404 J
1,428
1,866
2,411
j
1
j
1,646
995
1,070
1,801
1,110
737
1,318 "
1,143 ;
1,395 ,
2,478
1,427
2,427
2,143
1,432
1,557
|
1,306
1,342
1,728
1,097
808
559
1,469 '
1,699 i
1,444 ;
3,800e
1,933
2,375
2,532
2,129
1,767
2,054
l,900e
1,280
886
816
2,230 I1
1,021 >
1,U5 |
7,977
10,468
8,798e
6,218
7,354
6,332
6840
5,178
5,704
5,133
5,950
4,105
3,711
4,376
2,787
3,648
2,464
2,982
3,840 {
3,856 ;
4,612 s
4,366 I
18,445
27,243e
13,572
19,904
26,744
10,882
16,015
21,965
6,435
8,899
11,881
7,956 {
12,008 '
16,574 :
j
7,816
12,192e
j
Excluding finance companies 3
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.
5'
1
i
!
TABLE 5: New Corporate Security Issues, Type of Issue and Issuer
(In millions of dollars)
QUARTER
OR
MONTH
- II
GROSS PROCEEDS BY
TYPE OF ISSUER
PUBLIC
UTILITY
COMMUNICATIONS
OTHER
ISSUERS
7,354
6,332
6,840
3,411
3,186
3,479
1,673
1,347
1,053
2,268
1,797
2,307
277
289
115
1,126
750
809
1,773
1,862
1,314
1,878
1,544
1,967
432
684
598
3,266
2,243
2,961
7,977
10,468
8,798
4,577
6,994
5,981
1,235
1,282
1,136
2,147
2,190
1,680
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
- Sept.
Oct.
Nov.
Dec.
2,427
1,933
2,375
2,532
1,222
969
1,164
1,346
479
313
226
514
726
651
984
672
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
- Jan.
Feb.
Mar.
Apr.
May
June
July
Aug. e/
Sept.e/
Oct.
2,636
1,802
3,539
3,170
3,909
3,389
2,648
2,550
3,600
3,80*0
1,595
1,068
1,914
2,022
3,041
1,931
1,831
1,750
2,400
2,400
516
266
471
447
399
436
236
400
500
400
525
468
1,154
701
468
1,021
580
400
700
1,000
61
33
128
89
20
26
68
387
249
286
398
230
82
107
60
100
150
811
357
1,416
689 '
817
939
577
850
900
1,125
639
540
906
1,109
600
1,103
842
600
1,195
1,100
234
226
306
62
1,747
353
144
375
755
375
952
680
' 911
1,310
744
994
1,085
725
750
1,200
III
IV
-
I
lie
Ille
1
TOTAL
GROSS PROCEEDS BY
TYPE OF ISSUE
COMMON
BONDS
AND
MEMO:
PUBLICLY PRIVATELY PFD.
ISSUES INCLUDED
MFG.
PLACED
OFFERED
STOCK FOREIGN | CONVERTIBLE
n.a.
n.a.
n.a.
.
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 for New Capital
(Other than U.S. Treasury)1
'
°
z
November 1 thru November 6, 1970
ISSUER
TYPE u
AMOUNT
(MILLIONS
OF
DOLLARS)
MATURITY
COUPON
RATI: OR
Ki;I I.;TER1 ST COST
OFFERING
. YIELD
MOONY' .
•-:ATIN(.
Corporates
26.0
Great American Mtg. Investors Debs.
200.0
Debs.
Gulf Oil Corp.
40.0
1st. Mtg.
Florida Power Corp.
15.0
1st. Mtg.
General Tel. Co. of the N.W.
80.0
Vermont Yankee Nuclear Pwr. Co. 1st. Mtg.
75.0
Debs.
Ford Motor Credit Co.
125.0
Notes
Ford Motor Credit Co.
20.0
1st. Mtg.
Louisiana Power
S.F. debs . 150.0
Dow Chemical Co.
Units (conv.
Penazoll Offshore Gas Oper.
debs &
Inc.
shares) 130.0
1990
1995
2000
2000
1998
1990
1976
2000
2000
1979
7.00
8.50
9.00
9.63
9.63
8.88
8.38
9.38
8.90
2/1.00
7.00
8.55
8.83
9.63
9.45
9.00
9.00
9.20
8.90
--
Aaa
Aa
A
A
-—
A
A
""
TABLE 6: Large Long-term Public Security Issues for New Capital (continued)
(Other than U.S. Treasury)1
1
ISSUER
TYPE 2
AMOUNT
(MILLIONS
OF
DOLLARS)
MATURITY
COUPON
RATE OR
NET INTEREST COST
|
! i)FFHRj i:,(.
) YIELD
MOODY'S
RATING
State and Local
Dallas-Ft. Worth Reg. Arpt.
Texas
Philadelphia S/D Pa.
Massachusetts, State of
Rev.
G.O.
G.O.
50.0
45.4
. 63 .0
1999
- 1972-1991
1971-1990
7.91
7.81
5.09
5.40-8.00
3.50-6.00
Baa
Baa-1
Aa
i
*
1
2
3
4
Bights offering.
Includes corporate and other security offerings of $15 million and over;
State and local security offerings of $10 million and over.
In case of State and local government securities, G.O. denotes general obligation;
Rev.-Ut., revenue obligations secured only by income from public utilities;
Rev.-Q.-Ut., revenue bonds secured only by income from quasi-uti1itius; Rvv'.-S.T.,
revenue bonds secured by revenue from specific taxes only; Rev.-Rent., revenue
bonds^&cured solely by lease payments.
Includes forei gn government and International Bank for Reconstruct inn and
Development issues and non-quaranteed issues by Federal Agencies.
One per cent until October 1975, 6 per cent thereafter.
TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury) 1
(continued)
ISSUER
Corporates
Cleveland Elec. Ilium. Co.
American Tel. & Tel.
American Tel. & Tel.
City Investment Co,
Consumers Pwr. Co.
Publ Service Co. of N.H.
Republic Steel Corp.
Pacific G&E Co.
AMOUNT
(MILLIONS
OF
DOLLARS)
75.0 .
1st. Mtg.
Debs.
350.0
Notes
—150.0
Debs.
40.0
1st. Mtg.
55.0
20.0
1st. Mtg.
S.F. debs.
100.0
1st. and Ref.
100.0
Mtg.
1st. Mtg.
60.0
Alabama Pwr. Co.
Notes
50.0
Genesco Inc.
25.0
Bonds
Gen. Tel. & Tel. Co. Ind.
Debs.
20.0
Houston Natural Gas Corp.
23.0
1st. Mtg.
Citizens Utilities Co.
60.0
Cincinnati G&E Co.
- 1st. Mtg.
Debs.
75.0
Pub. Ser. Elec. & Gas
25.0
1st. Mtg.
Col. & So. Ohio Elec. Co.
South Central Bell Tel. Co. Debs.
150.0
" Gen. Pub. Utilities
Debs.
20.4
Gen. Pub. Utilities
Debs.
58.0
Debs.
*Sun Oil Co.
150.0
*Sun Oil Co.
Notes
50.0
Delmarva Pwr. Register
1st. Mtg. Coll.
Trst. bonds
30.0
Debs.
20.0
Houston Natural Gas Corp.
S.F. debs.
40.0
NCNB
1
Tenneco
Com stk.
110-137.5
60.0
*GATC
Bds.
Debs.
60.0
Marcor
25.0
Long Island Lighting Co.
Pref. stk.
S.F. debs.
35.0
Rockwell Mfg. Co.
Debs.
50.0
GAC Properties Cred. Inc.
Debs.
16.0
Belden Corp.
1st. & Ref.Mtg. 100.0
So. Calif Edison Co.
200.0
New York Tel. Co.
1st. Mtg.
National Steel
Bonds
90.0
As o f November 6 , 1 9 7 0
APPROXIMATE DATE
OF OFFERING
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
9
10
10
10
10
12
10
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
16
17
17
17
17
18
18
18
19
23
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Dec. 3
Dec. 3
Dec.
TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
( O t ^ r than U . S . T r e a s u i y ) ' ^ o f N o v e m b e r 6 > 1
• |
ISSUER
TYPE
I
State and Local
| Detroit, Michigan
6.0.
1 Detroit City S/D, Michigan
6.0.
6.0.
| *South Carolina
l Springfield, Illinois
Rev.
I Pa. St, Pub. Sch. Bldg. Auth.
Rev.
!
Rev.
New York State Pwr. Auth.
^Delaware
6.0*
*Mass. Health & Ed. Fac. Auth.
Rev.
Ohio, State of
6.0.
Illinois State Toll Hwy. Auth.
6.0.
Florida State Bd. of Ed.
Rev.
Alabama, State of
6.0.
Boston, Mass.
6.0.
Kansas City Metro Jr. Coll.
Dist., Mo.
6.0.
Los Angeles Dept. of Airports
v Rev.
*Los Angeles Comm. ReDev.
Agency, Calif.
6.0.
Georgia Bldg. Auth.
Rev.
Oakland Co., Mich.
6.0.
*DeKalb Co., 6a.
6.0.
Los Angeles Dept of Wtr. &
Pwr. Calif.
Rev.
Nassau Co., N.Y.
6.0.
San Francisco, Calif.
6.0.
Maryland, State of
• • 6.0.
Rev.
L.A. Harbor Dept., Calif.
Sacramento Municipal Utility
Rev.
Dist., Calif.
*
1
2
AMOUNT
(MILLIONS
OF
DOLLARS)
18.0
30.0
36.7
14.0
29.4
120.0
30.0
10.5
75.0
135.0
15.0
24.0
30.0
9 7 0
APPROXIMATE DATE
OF OFFERING
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
10
10
10
10
10
10
12
12
17
17
17
17
17
10.2
60.0
Nov. 18
Nov. 18
10.0
20.0
35.9
15.2
Nov.
Nov.
Nov.
Nov.
39.0
41.2
52.9
49.5
16.0
Dec. 2
Dec. 9
Dec. 14
Dec. 15
Dec. 16
50.0
Jan. 20
18
19
23
24
Included in table for first time.
' '
" ~~
•
' ~
Includes corporate and other issues of $15 million and over; State and local
Government issues of $10 million arid over.
Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues of Federal Agencies.
TABLE 8: Stock Prices and Volume
STOCK PRICES 1
DATE
S&P,
500
„
TRADING; VOLUME 2
AMEX4
D.J. - IND.
NYSE
AMEX
1968 - High
Low
108.37(11/29) 985.21(12/13)
87.72(3/5) 825.13 (3/21)
1969 - High
Low
106.16(5/14) 968.85(5/14)
32.91(1/3)
89 . 20 ( 7/17) 769 . 93 (12/17)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 - Oct. 16
23
30
84.28
83.77
85.25
763.35
759.38
755.61
22.39
22.11
22.91
50.5
51.1
50.5
13.7
12.7
12.9
84.22
771.97
21.95
54.2
11.9
Nov.
6
33.24(12/20)
21.97(3/25)
82.61(6/7)34.0(2/23)
45.4(6/7)
14.1(2/23)
i
1.
Figures other than highs and lows are Fridays only.
for the year and are not necessarily for Fridays.
2.
1941-43 = 1 0 .
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 belofoj
From:
—
August 8, 1967
January 22, 1968
June 30, 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
Highs and lows are
Days/
Week
5
5
4
5
5
5
Hours/
Week
20
20
22
20
22-1/2
25
15
STOCK PRICES AND TRADING VOLUME
^ A M EX
36
Weekly
dj.
S&P
(Ind.)
(500)
i- I i M I i .1 i i i | i ii i 1.1 ii i i i
1280 128
STOCK PRICES
AMEX PRICE LEVEL INDEX
1200 120
1120 112
1040 104
960
96
880
88
800 80
720
Millions of shares
60
AMEX TRADING VOLUME (TOTAL FOR WEEK)
NYSE TRADING VOLUME (TOTAL FOR WEEK)
1966
1967
1968
1969
1970
72
TABLE 9: Security Credit
!
;
END OF PERIOD
CREDIT EXTENDED TO
MARGIN CUSTOMERS BY: .
BROKERS 1 | BANKS 2 | TOTAL
CUSTOMERS'
NET DEBIT
BALANCES
NET CREDIT
CUSTOMERS' NET EXTENDED BY
BROKERS AND
FREE CREDIT
DEALERS 3
BALANCES
Outstanding:
1969 - Sept.
Oct.
Nov.
Dec.
1970 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
4,940
5,040
5,070
2,620
2,570
2,520
7,560
7,610
7,590
7,039
7,243
7,111
2,579
2,753
2,613
2,803
4,642
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
4,460
4,490
4,498
4,970
2,580
7,550
7,445
4,680
4,570
4,520
4,360
4,160
4,150
3,800
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
6,090
6,110
6,250
6,683
6,562
6,353,
5,985
5,433,
5,281
-60
100
30
-100
-50
-50
-50
60
-110
50
-20
-40
20
204
-132
334
2
174
-140
190
18
30
8
144
-290
-110
-50
-160
200
-10
-350
-10
110
-150
-40
-440
-170
-50
-200
240
-300
-60
-2 0
-762
-121
-209
-368
-552
-152
-177
-163
-22
-193
-26
-213
171
97
153
-585
42
-187
-188
-513
-61
(4)
(4)
(4)
.
(4)
(4)
(4)
Change in
Outstanding:
1969 - Sept.
Oct.
Nov.
Dec.
970 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept. .
1
2
3
——
-40
-40
—
10
30
140
——
——
—
——
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
Be LOAN ASSOCIATIONS
SAVINGS ,
MUTUAL SAVINGS BANKS
REGULAR DEPOSITS 3
NET
NET
SHARE CAPITAL
ANNUAL
NEW
NEW
ANNUAL
MONEY2
GROWTH
NET
MONEY2
NET
GROWTH
1
1
FLOW
RATE
FLOW
RATE
2,376
1,143
-747
10,649
7,399
4,020
9.4
6.0
3.1
6,129
2,738
-1,003
15,371
11,607
6,571
-266
24
-269
-1,110
-8
879
——
-1,122
-25
-104
-1,274
87
X 1,182
__
174
81
485
517
--
n.a.
543
550
1,831
840
726
2,331
——
—
9.3
7.1
4.0
1967
1968
1969
5,082
4,208
2,551
1969 - July
Aug.
Sept.
" -164
95
303
—
297
176
500
—
1970 - July
Aug. x!
Sept. EL/
Not Seasonally Adjusted
TOTAL
DEPOSITS
ANNUAL
NET
GROWTH
RATE 1
FLOW
——
-—
__
• —
n.a.
1
2
3
Apr.
May
June
July
Aug. jcf
Sept.j)/
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
—
--
8,505
3,881
-1,750
1,388
-1
-373
659
598
—
n.a.
1,
Seasonally adjusted
1970 -
9.4
6.3
3.4
NET
NEW
MONEY 2
——
-—
-—
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 batiks 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.
1
SAVINGS FLOWS (seasonally adjusted)
(Millions of
Monthly
2000
1600
1200
TOTAL
800
400
+
0
400
1200
SAVINGS & LOANS
800
400
+
0
400
800
MUTUAL SAVINGS BANKS
400
+
0
400
1966
1967
1968
1969
1970
/
TABLE 11: Mortgage Commitments at Selected Thrift Institutions
DATE
OUTSTANDING COMMITMENTS
1
ALL
MUTUAL
|
TOTAL
SAVINGS
SAVINGS &
xTOTAL
BANKS
LOAN
(N.Y. STATE)
ASSOCIATIONS
1
NET CHANGE
ALL
SAVINGS &
LOAN
ASSOCIATIONS
(Billions of Dollars, Se asonally Adjusted)
MUTUAL
SAVINGS
BANKS
(N.Y. STATE)
1/
969 - July
Aug.
Sept.
Oct.
Nov.
Dec.
9.9
9.5
9.2
8.9
8.6
8.4
6.8
6.5
6.4
6.1
5.9
5.8
3.1
3.0
2.8
2.7
2.7
2.6
-.32
-.36
-.31
-.33
-.24
-.25
-.22
-.24
-. 18
-.23
-.18
-.12
-.10
-.12
-.13
-.09
-.06
-.13
970 - Jan.
Feb.
Mar.
Apr.
May
June
July
8.2
7.9
7.6
7.8
8.0
8.2
8.6
5.6
5.4
5.2
5.4
5.8
6.1
6.5
2.6
2.5
2.5
2.4
2.2
2.1
2.0
-.17
-.30
-.26
.13
.24
.22
.35
-.22
-.23
-.21
.26
.38
.30
.40
.04
-.07
-.05
-.13
-.14
-.09
-.05
1
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.
I
MORTGAGE COMMITMENTS OUTSTANDING (seasonally adjusted)
Monthly
Billions of dollars
10
TOTAL
S&L'!
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
TOTAL
-
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
2,329
2,089
1,967
1,976
2,163
1,395
1,596
1,256
1,932
1,626
1,568
1969 - July
Aug.
Sept.
Oct.
Nov.
Dec.
1,698
1,910
1,876
1,734
1,652
1,906
1,364
1,380
. 1,365
1,166
1,069
1,29.2
DATE
FINANCIAL INSTITUTIONS
LIFE
MUTUAL
SAVINGS &
INSURANCE
SAVINGS
COMMERCIAL
LOAN
COMPANIES
BANKS
BANKS
ASSOC.
FNMA-GNMA
Not Seasonally Adlusted
1966
1967
1968
1969
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
233
230
215
181
144
221
160
182
Adlusted
151
310
383
244
237
347
181
157
137
12/4
146
235
3,761
7,52a
9,350
9,407
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
556
225
400
24
288
1,493
937
1970 - Jan.
241
499
436
143
285
1,105
1,604
Feb.
516
125
276
197
712
144
1,228
Mar.
494
189
205
357
892
141
1,386
Apr.
418
196
588
160
133
1,066
1,484
May
220
225
454
1,649
935
2,103
269
June
245
128
506
1,075
2,105
1,599
151
July
54
.
398
985
158
110
1,307
Aug.
1,705
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 1967.
23
NET CHANGE IN MORTGAGE HOLDINGS (seasonally adjusted)
Monthly
Billions of dollars
3.0
2 5
TOTAL, INCL. FNMA - GNMA
2.0
FINANCIAL INSTITUTIONS
—
1.5
1.0
1967
1968
1969
I
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
FARM
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
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
Hp
Hip
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
IIP
IIIp
IVp
30.4
28.5
27.0
25.6
22a
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
1970 - Ip
IIP
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
1
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 indues nonfara only and is sum of 1-to 4- family
and multifamily mortgage debt combined.
NET INCREASES IN MORTGAGE DEBT OUTSTANDING
Quarterly
Billions of dollars, seasonally adjusted annual rate
TOTAL
TOTAL
RESIDENTIAL
1-4 FAMILY
COMMERCIAL
MULTIFAMILY
1966
1968
1970
TABLE 14: FN^A Weekly "Auction" Results
WEEK
ENDED
COMMITMENTS IN $ MILLIONS
IMPLICIT YIELD2(per cent)
,
ACCEPTED
1-YEAR 1
1-YEARN
90906TOTAL
TOTAL
6& OVER
OFFERED
MONTH & OVER
DAY
MONTH
DAY
June
1
15
29
224.2
249.7
156.3
113.8
127.9
98.9
31. 1
71.4
34.2 . 86.7
6
30.
56. 5
July
13
27
286.2
323.8
113.3
150.4
25.0
37. 0
Aug.
10
24
441.3
575.0
180.2
215.1
41.4
48. 8
91.,0
124.,4
Sept.
8
21
384.2
207.8
200.1
195.3
45. 6
40.,1
Oct.
267.5
5
19 |. 352.5
149,8
16 %, 7
Nov.
2
16
341.5
11.3
7.0
11.8
9.20
9.27
9.32
9.24
9.30
9.33
9.27
9.31
9.34
73.,0 • 15.3
91. 1
22.3
9.20
9.10
9.21
9.12
9.22
9.12
47.8
41.9
9.03
9.03
9.03
9.03
9.04
9.03
117.,0
121.,5
37.5
33.7
9.06
9.01
9.04
9.01
9.04
9.02
62.2
53 .2
73. 1
88 .1
14.5
8.4
8.90
8.89
8.92
8.90
8.97
8.95
181.2 100,.1
(175.0)3/
62 .4
18.7
8.90
8.93
8.93
Note: Under the FNMA auction system, approved sellers of Governmentunderwritten mortgages bid for FNMA forward purchase commitments, subject to an over-all dollar limit announced by FNMA in advance. Bids
accepted by FNMA are for delivery at the seller's option, and at any
time within the specified period. Bids on proposed homes relate to
construction not yet started on which mortgages may be delivered only
after completion and occupancy.
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
200
AMOUNT OF ACCEPTED BIDS
BY COMMITMENT PERIOD
150
6 MONTHS
100
1 YEAR
AND OVER
50
| 3 MONTHS
IMPLICIT YIELD
6-MONTH COMMITMENTS
$ Millions
800
600
TOTAL BIDS RECEIVED
400
200
—'
|
v/
I
JUNE
[TOTAL BIDS ACCEPTED
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
UNADJUSTED
TYP E OF FINANCING
FHA VA
OTHER
BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE)2
Sept.
Oct.
Mv.
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
18.3
254
18.6
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
1970 -;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
16.5
17.5
25.2
32.4
37.140.7
43.4
34.1
n.a.
3.4
3.9
4.8
5.4
5.2
5.1
5.3
5.7
n.a.
46.5
52.9
84.7
90.6
80.8
89.4
92.1
87.7
1 ,013
1 ,137
1 ,099
1 ,263
1 ,321
1;,306
1,,275
1:,326
1:,368
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 areasidentified as having a local building permit system in 1959. Estimates beginning
January 1963 are for approximately 12,000 and beginning January-!967 13,000, or
all known permit-issuing places. Unlike starts, seasonally adjusted building permits reflect direct adjustment for differences in the number of working days per
month, as well as other differences in timing and coverage.
~
i
29
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
40
GOVERNMENT UNDERWRITTEN
1966
1964
<7
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
2
3
4
FHA
MORTGAGES
CONVENTIONAL
MORT25-YEAR 30-YEAR GAGES
3 —
6.26
5.43
6.73
n.a.
n. a.
n.a.
n.a.
n.a.
n.a.
n.a.
2
SPREAD BETWEEN YIELDS
ON CONV. &
FHA MORTGAGES
1
NEW
Aaa CORPORATE
BONDS
4
SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES
5.44
6.81
6.81
6.29
7.52
6.78
8.62
7.99_
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
1.69
.77
1.16
1.28
.27
1.20
.26
1.08
-.13
9.10
9.11
9.16
9.11
9.07
9.01
8.55
8.55
8.55
8.60
8.60
8.50
-.55
-.56
-.61
-.51
-.47
-.49
8.60
9.10
9.11
8.63
8.48
8.42
.50
.01
.05
.48
.59
.59
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.
Based on FHA-field-office opinions about average bid prices in the private
secondary market for new-home mortgages for immediate delivery. Separate
,
data available for 25-year and—beginning July 1961—30-year mortgages with
minimum downpayments, weighted by probable volume of transactions. Yields
computed by FHA, assuming prepayment period of 12 years for 25-year mortgages
and 15 years for 30-year mortgages. Over the period for which they can be
compared, the movement of the two mortgage yield series has been similar.
Dashed lines indicate periods of adjustment to changes in contractual interest
rates.
Based on FHA-field-office opinion on typical interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring officecities. 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.
See note for Table 1.
MORTGAGE AND BOND YIELDS
Monthly
Percent
HOME MORTGAGES:
CONVENTIONAL
Aaa CORPORATE BONDS:
NEW ISSUES
•
Y I E L D SPREAD(FHA MORTGAGE VS. NEW ISSUE Aaa CORPORATE BONDS)
Basis Points
200
100
100
1962
1964
1966
1968
1970
TABLE 17: Conventional Mortgage Terms
DATE
NEW HOMES
CON- FEES &
TRACT CHARGES EFFEC- MATURITY
(PER
RATE
(YEIRS)
TIVE
(PER
CENT) RATE
CENT)
2
3
LOAN/
PRICE LOAN
RATIO AMT.
(PER ($000)
CENT)
4
1
EXISTING HOMES
CON- FEES &
LOAN/
TRACT CHARGES EFFEC- MATU- PRICE
(PER
RATE
TIVE
RITY RATIO
(PER
CENT) RATE
(YEARS) (PER
CENT)
CENT)
2
3
LOAN
AMT.
($000)
4
I
1969
Aug.
Sept.
Oct.
Nov.
Dec.
k
7.86
7.89
7.99
7.97
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
0.90
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
8.16
8.23
8.29
8.23
8.28
8.31
8.32
8.35
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 s
20.4f
21.l|
21.51
21.7^
^
1
[
t
1970
Jan.
Feb.
Mar.
Apr.
May
June
July—^
Aug.
2 1
1
Compiled by Federal Home Loan Bank Board in cooperation with Federal Deposit Insurance
Corporation. Data are weighted averages based on probability sample survey of characteristics of conventional first mortgages originated by major institutional lender
groups (including mortgage companies) for purchase of single family homes. Data exclude loans for refinancing, reconditioning or modernization; construction loans to
home-builders; and permanent loans which are coupled with construction loans to ownerbuilders. Related series on conventional mortgage rates only, based on unweighted
opinions of field-office directors of the Federal Housing Administration, are available
somewhat sooner than the results of the FHLBB-FDIC survey, and are included-i.n 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.
i
CONVENTIONAL MORTGAGE TERMS
Monthly
Years
30
MATURITY
NEW
25
EXISTING
20
1
J
I I I I I I I I M I I I 1 I I15I I I I I 11
80
LOAN/PRICE RATIO
NEW
75
EXISTING
70
I i i i i i i i i i rl i i M65i i i i i
Thousands of dol
LOAN AMOUNT
30
20
EXISTING
J_
L
1964
11111111 n 1111111111111
1966
1968
1970
* CHANGE IN SERIES
@FedFRASER