Full text of H.16 Capital Market Developments : October 27, 1969

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DECONTROLLED" AFTER SIX MONTHS

L.5.8 Confidential ^RR.)

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October 27, 1969.

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CAPITAL
MARKET
DEVELOPMENTS

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




—

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^

2

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:
Estimate
Preliminary
Revised
Not available




TABLE 1: Yields, Volume and Reception

WEEK ENDING:

1969 - Sept.

Oct.

Oct.

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

5
12
19
26

7.90
8.02
8.04
8.13

7.05
7.12
7.16
7.19

204
310
291
353

3
10
17
24
31

8.22
8.10
7.95
7.82
n. a.

7,28
7.37
7.39
7.31
n. a.

195
89
207
270
200e

WEEK ENDING:

1969 - Sept.

YIELDS
MOODY'S
SEASONED
1
NEW ISSUE
Aaa

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

90
100
93
74
"

75
76
97
89
n.a.

MUNICIPAL BOND MARKET
VOLUME2
; PER CENT
SOLD BY END
GROSS
OF WEEK
OFFERINGS

5
12
19
26

5.80
5.85
5.85
5.82

6.37
6.33
6.25
6.08

86
132
100
134

3
10
17
24
31

5.83
5.80
5.75
5.80
n. a.

6.19
6,3.4
5.92
5.92
n. a.

119
342
300
350
200e

80
77
78
72
72
79
59
56
n.a.

1,179
982
775
548
871
928
798
703
n. a.

BONDS SCHEDULED
WITHIN 28 DAYS
547
545
462
626
745
454
528
769
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




TABLE 2> Details on Inventories
DATE
OFFERED

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

AMOUNT ,
(MIL. $)

.V \

100.0

10/22

" DATE
OFFERED 1 RELEXSED

Mountain States Tel. & Tel.

8.00

8.00

Aa^

'

5 yrp.

ESTIMATED PROPORTION SOLD

70%

CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK
ORIGINAL INCREASE RATING AND ESTIMATED PROAMOUNT
ISSUER
COUPON
IN YIELD CALLPROT. PORTION RELEASED
YIELD
\ '
NONE

INVENTORIES 1
MUNICIPALS
BLUE LIST
IN SYNDICATE
1969 - Sept.
Oct.

26
3
10
17
24 £ /

292
331
321
r/380
495

42
50
81
119
242

CORPORATES
IN SYNDICATE
92
49
21
7
30

No call protection.
All figures in millions of dollars. Blue List is daily average for week ended Friday,except for late
which is daily average of three days.ended Wednesday. All other figures are as of Friday.
FRASER

Digitized for


BONDS IN SYNDICATE
Millions of dollars
CORPORATE B O N D S IN S Y N D I C A T E

200
100
I.IIII IL
—1

1

T

1

1—T

MUNICIPAL B O N D S IN S Y N D I C A T E

300

200
100

SEPT.

DEC.

'67




MAR.

JUN.

1968

SEPT.

DEC.

MAR.

JUN.

1969

SEPT.

DEC.

X

:\
TABLE 3: High Grade Bond Yields
MOODY'S SEASONED
CORPORATE
Aaa 2
6.24(2/29)
5.00(2/10)

U.S 4 GOVERNMENT
20-YEAR
CONSTANT
MATURITIES 3
5.73(11/7)
4.48(1/20)

BOND
BUYER'S
SEASONED
MUNICIPALS 4
4.45(12/7)
3.40(2/2)

1967 - tiigh
Low

NEW
CORPORATE
• Aaa 1,
6.55(12/8)
5.11(2/10)

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 - H i g h
Low

8.22(10/3)
6.90(2/21)

7.39(10/17)
6.55(1/3)

6.77(10/17)
5.96(1/24)

6.37(9/4)
4.82(1/28)

8.13

7.19

6.64

6.08

8.22
8.10
7.95
7.82

7.28
7.37
7.39
7.31

6.77
6.54
6.38
6.30

6.19
6.14
5.92
6.07

DATE

1969 - Sept.
Oct.

26
3
•10.
17
24£/

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 biry Moody-s Investors Service. '
f
Note--Highs and lows are for individual series and may be on different dates
for different scries.




|

HIGH GRADE BOND YIELDS

NEW CORPORATE Aaa

MOODY'S
CORPORATE Aaa

U.S. GOVT. 20 YR
CONSTANT MATURITIES

L

1965




1966

1968
'

1969
.

.

;

••

A
.

N

TABLE 4: Long-term Corporate"an3 State and Local Government
Security Offerings and Placements (In millions of dollars)
GROSS PROCEEDS
STATE AND LOCAL 2

CORPORATE 1

PERIOD

'

1969p

1968p

1967 •

1

'

January
February
March

2,075
2,045
2,098

1,771
1,608
1,799

1,684
1,418
2,362

April
May
June

2,748
2,076
2,480

1,428
1,866
2,411

2,015
1,518
2,674

July
August
September

2,450
l,600e
2,480e

2,143
1,432
1,557

2,589
. 2,481
1,763

1,950e
2,200e

2,129
1,767
2,054

2,409
1,500
2,385

6,218
7,304
6,530e

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

5,464
6,208
6,832,
6,294

13,522
20,052e

10,882
16,015
21,965

October
* November
December
1st
2nd
•. 3rd
4th

Quarter
Quarter
Quarter
Quarter

1st half
Three quarters
Year

/

11,672
18,504
24,798
•

Excluding finance companies
1st
. 2nd
3rd
.4th

Quarter
Quarter
Quarter
Quarter

5,107
5,427
4,785
5,654

;
I

5,308
6,063
6,584
5,859

*

1968p

1967

1,263
988
540

1,178
1,158
1,404

1,492
1,236
1,450

1,800
1,113
711

1,318
1,143
1,395

1,130
1,254
1,497

1,063
790
525e

1,469
1,699
1,444

950
860
1,340

l,250e
l,000e

2,230
1,021
1,115

975
1,401
1,182

2,791
3,624
2,378e

3,740
3,856
4,612
4,366

4,177
3,881
3,150
3,557

6,415
8,793e

7,956
12,008
16,574

8,059
11,209
14,766

!

j
,
i

|
1
1. . Securities and Exchange Commission estimates of gross proceeds.
2
Investment Bankers Association of America estimates of principal amounts.
3
Total gross proceeds excluding offerings of sales and-consumer finance
companies.
Year -




20,973

23,814

i
.!
I

1969p

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

QUARTER
OR
MONTH
1968 - III
IV
1969 - I
lie/
Hie/

1

GROSS PROCEEDS BY
TYPE OF ISSUER

GROSS PROCEEDS BY
TYPE OF ISSUE
COMMON
AND1
ISSUES INCLUDED
PUBLICLY PRIVATELY PFD.
FOREIGN
CONVERTIBLE
STOCK
OFFERED j PLACED
5,133
5,951
6,218
7,304
6,530

2,606
2,555
2,657
3,411
3,209

1,361
1,922
1,540
1,623
1,141

1,166
1,474
2,023
2,268
1,679

- Sept, 1,556
Oct.
2,129
Nov.
1,767
Dec.
2,055
- Jan.
2*075
Feb.
2,045
2,098
Mar.
Apr.
2,748
May
2,076
June
2,480
July
2,450
Aug.ey 1,600
Sept.*/2,480

727
1,009
939
607
980
842
835
1,268
871
1,272
1,279
700
1,230

433
595
362
965
636
395
509
649
510
464
591
500
550

398
525
466
483
460
808
755
830
694
744
579
400
700

124
113
215
227
n. a.

28
24
49
40
103
74
38 ,
.62
28
137
132
n.a.
n.a.

PUBLIC
UTILITY

ISSUERS'

1,037
902
1,355
1,077
706

1,657
1,712
1,407
1,723
1,831

1,160
1,435
1,346
1,878
1,362

490
319
473
432
721

1,825
2,483
2,993
3.266
2,617

221
365
211
326
376
578
401
430
463
184
206
200
300

453
640
421
651
403
513
491
513
569
641
881
250
700

475
674
443
319
627
315
404
784
392
702
492
450
420

156
115
162
41
186
56
231
44
197
191
286
175
260

472
700
741
1,044
860
1,161
972
1,405
915
946
792
725
1,100

Other issuers are extractive, railroad and other transportation, real estate
and finance, and commercial arid other.
Source: Securities and Exchange Commission. Quarterly supplements are available.
'




COMMUNICATIONS

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

'

ISSUER

TYPE '

" AMOUNT
- (MILLIONS
OF
DOLLARS)

Corporate
Northern States Pwr. Co.
Illinois i W e r Company
Columbia Gas System Inc.
Nashua Corporation
General Public Utilities
Corporation
General Telephone Co. of
Illinois
Dayton Pwr. & Light Co.
Family Finance Corp.
Pennsylvania Pwr. & Light
Company
St. Paul Companies, Inc.
Appalachian Pwr. Company
Imperial Corp. of America
Union Electric Company
Household Finance
Consumers Power Company
Alison Mtg. Investment
Trust
Southern California Edison
Company
Texas Eastern Transmission
Corporation
Mountain States Telephone
and Telegraph




\

1st mtg.
1st mtg.
Debs.
Debs.
Com. stk.

45.0
35.0
50.0
15.0

\

1st mtg.
1st mtg.
Debs.
Com. ,stk.
Notes
1st mtg.
Com. stk.
1st mtg.
Debs.
Pfd. stk.

October 1 through October 24. 1969.
. V.vmvoN
OKI-ICR- MOOMV .
HAT!: OR ,
I<AT 1 N(.
. INC
M.i- I..TKRMATURITY
Yi i:i,n
1 ST COST

1999
1999
1994
1989

8.00
8.35
9.00
9-1/4

8.35
8.35
8.95
9.25

Aa
Aa
A
Baa

15.0
1999
30.0
1999
. 40.0 , 1989

9.00
8-1/4
9-1/2

8.80
8.25
9-1/2

A
Aa
N.R.

1974
1999

8-1/4
8-1/2

8.25
8.36

N.R.
A

1999
1975

8-1/4
8-3/4

8.12
8.81

Aa
N.R.

28.8

25.0
25.0
, 60.0
19.2
40.0
75.0
35.0

Benf. Int.

15.5

1st & ref.

100.0

1994

8-1/8

8.13

Aa

50.0

1989

8.70

8.70

Baa

100.0>

2009

8.00

8.00

Aaa

1st pipeline
Debs.

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

§

October 1 through October 24, 1969.
COUPON
HATE OR
IS.T IAITHUES r COST

MATURITY

OFFERTNC
Y1HL1)

MOONY'5
RATING

State & local Government
Michigan, State of
New York State Dora. Auth.
New York State Dorm. Auth.
New York State
Hawaii, State of
Los Angeles Dept. of Wtr.
and Power
Chicago, Illinois
Washington Co., Tennessee
Warren Consolidated Sch.
Dist., Michigan
Los Angeles Co. Flood
Control District
Los Angeles Co. Flood
Control District
Washington, State of
Washington, State of
New York, New York
New York, New York
New York, New York
Louisiana, State of
Alabama, State of
Philadelphia S/D, Pa.
Jackson Co., Missouri
Pittsburgh, Pennsylvania
Connecticut, State of
Puerto Rico




30.0
18.6
5.6
84.0
45.0

1973-78
1970-2000
1970-2000
1970-89
1972-94

5.49
6.95
6.87
5.87
7.04

5.20-5.50
5.60-690
5.60-6.90
5.20-6.15
5.80-7.00

Aa
N.R.
N.R.
Aa
N.R.

Rev.
Bonds
G.O.

39.0
20.0
15.2

1970-99
1971-79
1971-90

6.22
5.95
6.31

5.20-6.25
5.40-5.85
5.35-5.38

Aa
A-l
Aa

Bonds

13.0

1970-1998

6.00

6.00

5.0

1970-95

5.87

5.00-5.90

Aa

10.0
4.0
20.1
49.5
61.9
48.6
15.0
13.0
60.0
33.0
10.0
75.0
50.0

1970-95
1974-85
1971-80
1971-74
1971-80
1971-84
1970-89
1970-89
1971-85
1976-85
1970-94
1970-89
1971-98

5.91
5.65
5.55
6.70
6.40
6.40
5.95
5.90
6.79
5.84
6-1/8
5.79
6.26

5.00-5.90
5.10-5.80
5.10-5,80
5.75-6.20
5.75-6.35
5.75-6.40
5.10-6.20
5.10-6.25
6.00-6.70
5.45-5.80
5.10-6.10
5.00-5.88
5.30-6.40

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

Bonds
Rev.
Rev.
Bonds
Rev.

•

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

.

Baa

TABLE b: Larue Lonci Icrm Public Security Issues for New Capital (contmui rU
(Other than U.S. Treasury)1
(continued)
AMOUNT
(MILLIONS
OF
DOLLARS)

October 1 through October ?M
COUPON
' RATE OR
iJFFKR - MOODY'S
NET INTERRATING
INC
EST COST

Other
F.N.M.A.
F.N.M.A.
Federal Land Banks
Tennessee Valley Auth.
Federal Home Loan Bank

Debs.
200.0
Debs.
400.0
Bonds
232.4
Bonds
100.0
Consol. bds. 250.0

1972
1971
1971
1994
1971

8.70
8-3/4
8.45
8-1/4

8.20

8.70
8.)5
8.45
8.25

8.20

_L
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 gentra I obligation;
. '<ev.-Ut., revenue obligations secured only by income from public utilities;
Rev.-Q.-lit., revenue bonds secured only by income from quas i -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-quaranteed issues by Federal Agencies.




Aaa

1969

. TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury)1
(continued), ^
O c t o k e r 2 4 , 1969.

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

Corporate
. American Finance Systems Inc. Debs.
Pacific Pwr. & Light
1st mtg.
Data Processing Financial &
General Corp.
Conv. sub. debs.
Signal Companies, Inc.
S. F. Debs,
' Wisconsin Electric Pwr. Co.
Bonds
. Northern Natural Gas Co.
S. F. debs,
Alabama Power Co.
Bonds
.Tucson Gas Ji Elec. Co.
Bonds
Consolidated Natural Gas Co.
Debs.
Collins & Aikeman
Conv. debs.
Investment Properties Assoc.
Bonds
Nat'1. Health Enterprises Inc. Debs.
^Commonwealth Edison
1st mtg.
*Mani±oba (Prov. of)
Debs.
Conv. sub. debs.
. First & Merchants Corp.
Consumers Pwr. Co.
Bonds
Bonds
Cleveland Elec. Illuminating
*McCulloch Oil Corp.
Debs.
Public Service Elec. & Gas Co. Debs.
South Central Bell Tel. Co.
Debs.
Deb s.
*B. F. Goodrich Co.
Bonds
Iowa Elec. Lighjt & Pwr. Co.
Bonds
Iowa Pwr. & Light Co.
.
Public Service Co., Indiana
Bonds
*May Department Store CreditCo. Debs.
Bonds
*UGI Corporation
Bonds
Pacific Gas & Elec. Co.
Bonds
Boston Edison Co.
Bonds
^Niagara Mohawk Pwr. Corp.
^Louisiana Pwr. & Light Co.
Bonds
^Mississippi Pwr. & Light Co.
Bonds




30.0
20.0
35.0
100.0
40.0
50.0
35.0
15.0
30.0
15:0
78.8
15.0
100.0
50.0
20.0
55.0
30.0-60.0
30.0
60.0
125.0
100.0
20.0
15.0
40.0
50.0
20.0
80.0 .
50.0 .
75.0
25.0
20.0

Oct. 27
Oct. 27
Oct. 28
Oct. 28
Oct. 28
Oct. 28
Oct. 29
Oct. 29
Oct. 30
Oct.
Oct.
Oct.
Nov. 2
Nov. 3
Nov. 3
Nov. 5
Nov. 6
Nov. 10
. Nov. 6
Nov. 12
Nov. 13
Nov. 13
Nov. 17
Nov. 18
Nov. 18
Nov. 18
Nov. 19
Nov. 20
Nov. 25
Nov. 25
Dec. 3

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

State & Local Government
Henerico Co., Va.
N.Y.S. Housing Finance Agency
*Dade Co. Bd. of Public
Instruction, Fla.
•
*Marion Co., Ind.
Vermont, State of
*Penna. High Ed. Fac. Auth.
*Albany Co., N. Y.
*Chicago Park Dist., 111.
Jacksonville Elec. Auth., Fla.
•Plymouth Comm. S/D Mich.
Anne Arundel Co., Md.
St. Paul, Minn.
Penna. Sch. Bldg. Auth.
Dallas, Texas
*East Chicago Sanit. Dist., Ind.
Jersey City, N. J.
•Richmond, Virginia

G.O.
Bonds

15.0
95.0

Bonds
G.O.
G.O.
Bonds
Bonds
G.O.
Bonds
G.O.
U.P.
G.O.
Bonds
G.O. & Rev.
G.O.
G.O.
G.O.

13.4
15.5
25.0
13.7
70.0
10.0
22.0
11.0
12.0
11.5
52.7
45.9
17.0
10.0
38.0

Oct.
Oct.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Dec.

Bonds

139.3

Nov. 16

Oct. 28
Oct. 29
29
30
6
6
6
6
12
12
13
18
18
19
20
25
3

Other
Housing Assistance Admin.

*
1

Included in table for first time.
.
Includes corporate and other issues of $15 million and over; State and local
Government issues of $10 million and over.
2
Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues of Federal Agencies.
Note—Postponed this week were: Associates Investment Co.—35.0--cancelled because
of market conditions; Detroit S/D Michigan--18.0—no bids received due to
6 per cent interest limitation; Wayne Co., Mich.—20.0—no bids received.




TABLE 8: Stock Prices and Volume
STOCK PRICES 1
S&P
5003
19%7 - High
• Low

-

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

TRADING VOLUME 1
NYSE

D.J. - IND.

AMEX

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

24,52(12/29)
13.78(1/27)

60.7(8/14)
27.41(1/6)

33.5(10/27)
8.3(1/6)

1968 - High
Low

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

33.24(12/20)
22.00(3/22)

82.1(6/7)
34.0(2/23)

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

1969 - High
Low

105.94(5/16)
91.96(7/25)

968.85(5/14)
801.96(7/29)

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

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

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

1969 - Sept. 5
12
19
26

93.64
94.35
95.19
94.16

819.50
824.25
830.39
824.18

- 26.34
26.38
26.77
26.63

35.6
54.0
56.3
54.0

12.4
19.6
20.2
19.2

3 93.19
10 93.56
17 96.25
24£ '98.12

808.41
806.96
836.06
862.26

26.57
26.71
27.66
28.37

51.3
52.2
82.6
79.5

35.3
18.2
29.9
32.7

Oct.

J

Figures other than highs and lows are Fridays only, Highs and lows are
for the year and are not necessarily for Fridays.
Total number of shares traded per week (millions of shares). In the past,
trading was normally conducted 5 days a week for 5 1/2 hours per day, or
'27 1/2 hours per week. From August 8 through August 20, 1967, daily trading was reduced to 4 hours per day or 20 hours per week. A 20-hour week
was also in effect from January 22 through March 1, 1968. From June 30
through December 31, 1968, the exchanges were open 5 1/2 hours for 4 days
a week or 22 hours. From January 3 through July 3, 1969, the exchanges
were open 4 hours each day, 20 hours per week. Beginning July 7, 1969
the exchanges have been open 4 1/2 hours each day, 22 1/2 hours per week.
NYSE is New York Stock Exchange; AMEX is American Stock Exchange.
1941-43 = 10.

4

Average dollar value of shares listed.




15

STOCK PRICES AND TRADING VOLUME

D.J.
(IND)
1300

Weekly

STOCK PRICES
AMEX PRICE LEVEL INDEX

S&P s500

D.J. IND.

i

I
AMEX T R A D I N G VOLUME

(TOTAL FOR WEEK)

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

•

1965

1966




1967

1968

4

8 !.

1969

S&P
(500)
130

1260

126

1220

122

1180

118

1140

114

1100

110

1060

106

1020

102

980

98

940

94

900

90

860

86

820

82

780

78

740

74

TABLE 9: Security Credit

END OF PERIOD

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

CUSTOMERS'
NET DEBIT
BALANCES

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

Outstanding:

1968 - Aug.
Sept.
Oct.
Nov.
Dec.

6,460
6,390
6,250
6,200
6,200

2 ,490
2 ,520
2 ,560
2 ,630
2 ,710

8,950
8,910
8,810
8,830
8,900

8,489
8,724
8,859
9,029
9,970

2 ,984
3 ,126
3 ,407
3 ,419
3 ,717

5,592
5,505
5,590
5,452
5,610
6,073

1969 - Jan.
Feb.
Mar.
Apr.
May
June
July r f
Aug. j>/

5,930
5,750
5,590
5,570
5,670
5,340
5,170
5,030

2 ,750
2 810
2 ,780
2,,760
2 ,770
<
2,,740
2,700
2,,670

8,680
8,560
8,370
8,330
8,440
8,080
7,870
7,700

9,042
9,148
8,318
8,044
8,474
8,214
7,515
7,029

3 ,597
3 ,647
3 ,294
3 ,077
3 ,084
3 ,085
2 ,783
2 ,577

5,445
5,501
5,024
4,967
5,390
5,129
4,732
4,452

70
30
40
70
80

30
-40
100
20
80

-371
235
135
170
761

-285
142
281
12
298

-86
85
-138
158
563

40
60
-30
-20
10
-30
-40
-30

-220
-420
>190
-40
110
-360
-210
-170

-928
-51
-830
-274
430
-260
-699
-486

•120
50
•351
•217
7
1
•302
•206

-628
-9
-477
-57
423
"261
-397
-280

Change in
Outstanding:

^

1968 - Aug.
Sept.
Oct.
Nov.
Dec.

-40
-70
-140
-50

1969 - Jan.
Feb.
Mar.
Apr.
May
June
July ry
Aug. £/

-270
-180
-160
-20
100
-330
-170
- 40

--

:

'

1 . 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.
2
"Bank loans to others than brokers and dealers for purchasing or carrying securities other than U.S. governments."
3
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.




TABLE 10: Savings Flows at INonbank Depositary Intermediaries
($ millions)
MUTUAL SAVINGS BANKS X;
NET
.REGULAR DEPOSITS 3
NEW
ANNUAL
GROWTH ' MONEY 2
NET
FLOW
RATE 1

DATE

1966
1967
1968
1969 to date

|

2,557
5,082
4,186
1,346

1968 - July
Aug.
Sept.

186
238
505

1969 - July'
Aug.
Sept.

-164
95
300

4.9
9.3
7.0
--

227
2,376
1,143
-155
64
181
-38

SAVINGS (
ST LOAN ASSOCIATIONS
NET
SHARE CAPITAL
NEW
ANNUAL
MONEY 2
NET
GROWTH
FLOW
RATE 1
Not Seasonally Adiusted
3,584
3.2
-552
10,687
6,129
9.4
7,396
2,676
5.9
2,261
-277
--588
389
1,133

--

-6061
366 \
348

-1,122
-266 . -.1,110
8
. 24
25
879
- 102
_
_
-280
Seasonally Adjusted

TOTAL
DEPOSITS
ANNUAL .
NET
GROWTH
RATE 1
FLOW

6,141
15,769
11,582
\ 3,607
-402
627
1,638
-1,274
87
1,179

3.8
9.4
6.3

'

1
2
3

160
357
178
-47
191
165

3.0
6.6
3.3
-0.9
3.6
3.0

——

——

190
498
491
-40
275
502

1.7
4.5
4.4
-0.4
2.5
4.5

' ---

—— .
——
- ——

-325
8,505
3,819
-432
-542
547
310

—

——

-1,388
1
- 382
V .

1969 ' Apr.
May
June
July
Aug.
Sept. £/

NET
NEW
MONEY 2

350
855
669
-87
466
667

2.1
5.2
4.0
-0.5
2,7
4.0

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 967, 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)
Monthly

Millions of dollars

2000
1600
VTOTAL
1200

800
400

400
1200
SAVINGS & LOANS

800
400

400

800
MUTUAL SAVINGS BANKS

400

400
1965

1966




1967

1968

1969

TABLE 11: Mortgage Commitments at Selected Thrift Institutions

DATE

TOTAL

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

1

1

NET CHANGE
ALL
SAVINGS &
LOAN

|.
TOTAL

ASSOCIATIONS
(Billions of Dollars, Sea sonally Adjusted) 1/

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

l

9.0
9.1
9.5
9.7
9.7
9.9
10.1
10.3
10.5
10.3
id, 2
9.9
9.5 :

6.1
6.2
6.4
6.5
6.6
6.7
6.9
7.0
7.2
7.1
7.0
6.8
6.5

.

2.9
2.9
3.0
3.2
3.1
3,2
3.2
3.3
3.3
3.2
3.2
3.1
3.0

.16
.14
.35
.27
-.01
.15
.25
.17
.19
-.19
-.09
-.28
-.43

MUTUAL
SAVINGS.
BANKS
(N.Y. STATE)

X --

.10
.22
.10
.08
. 08
.22
.09
.18
-.10
-.05
-.21
•

--

3 2

Based on data from Federal Home Loan Bank Board and Savings Banks' Associations of
New York State. Data for savings banks and S&L's include a minor amount of nonresidential commitments. S&L commitments include loans in'process. Net changes
are derived directly from unrounded outstandings levels as reported and after
seasonal adjustment by Federal Reserve. Subtotals may not add to totals because
of rounding.




.16
.04
.13
.17
-.10
.07
.03
.08
.01
-.09
-.04
-.08
-.11

MORTGAGE COMMITMENTS OUTSTANDING (seasonally adjusted)
Monthly

Billions of dollars

TOTAL

S&L'S

N Y-MSB'S

* Includes building loans beginning August 1967

1960




1962

1964

1966

1968

1970

TABLE 12: Net Change in Mortgage Holdings 1

DATE

" TOTAL
INCLUDING
FNMA-GNMA

FINANCIAL INSTITUTIONS'
LIFE
MUTUAL
SAVINGS &|
j
INSURANCE
TOTAL j COMMERCIAL
SAVINGS
LOAN
BANKS
BANKS
ASSOC. | COMPANIES
1

FNMA-GNMA

Not: Seasonally Adjusted
1966
1967
1968

18,197
19,988
23,807

15,874
18,191
21,299

4,705
4,369
6,677

1,968
Apr.
2,219
May
June
2,154
July . 1,835
Aug.
1,998
Sept. 2,000

1,722
1,984
1,934
1,683
1,857
1,892

•606
597
645
517
549
746

2,038
1,980
2,165
1,395
1,617

627
600
575
200
400
500

Apr,
May
. June •
July
Aug.
Sept.
1969 - Jan.
Feb.
Mar.
Apr.,
May
June
July
Aug.
Sept.
1

2,229
2,165
2,387
1,688
2,145

--

2,090
2,256
2,023
2,129
2,035
2,142
1,672
1,915

1,935
2,073
1,827
1,923
1,814
1,871
1,348
1,372

638
672
• 637
571,
535
437
147
277
421

2,760
3,118
2,796

.

160
203
219
248
233.
221

3,761
7,538
9,330

879
957
901
718
874
810

1,026204
988
233
230
1,216
865
215
865
181
n.a.
n.a.
Seasonally Adjusted
303
269
208
253
258
231
163
147
n.a.

890
874
852
897
842
1,033
869
746
n.a.

4,648
2,914
2,496
.

2,323
1,797
2,508

77
227
169
200
201
115

246
235
220
152
141
108

181
159
144
115
171
n.a.

191
185
222
293
528
n.a.

104
258
130
202
179
170
169
202
n. a.

155
183
196
206
221
271
324
543
n.a.

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.




NET CHANGE IN MORTGAGE HOLDINGS (seasonally adjusted)
Monthly

Billions of dollars

3.0

2.5

TOTAL, INCL FNMA - G N M A

2.0

FINANCIAL INSTITUTIONS

1.5

1.0

1966

1967

1969

1968

I
i

I




I

24

•
TABLE 13: Net Increases in Mrrtapno.neht Outstanding
Billions of dollars, SAAR 2
MULTIFAMILY . COMMERCIAL

MULTI-AND
COMMERCIAL

QUARTER

TOTAL

RESIDENTIAL2

1- to 4FAMILY

1965 - I
II
III
IV

24.9
25.2
25.8
26.6

18.6
18.5
19.3
19.6

15.1
15.1
15.5
15.8

3.5
3.5
3.8
3.8

4.2
4.5.
4.4
4.6

1966 - I
II
III
IV

28.3
24.2
18.4
15.6

19.0
15.6
10.8
'9.5

14.7
12.1
8.3
7.2

4.3
3.5
2.6
2.3

6.9
6.5
5.4
4.3

15.5
1967 - I p
20.4
Hp
III > 26.3
IV p 28.6

9.9
13.7
19.1
20.9

6.8
10.5
15.3
16:5

3.0
3.3
.3.8
4.4

3.8
4.8
4.8
5.1

26.9
1968 - IP
IIP 25.8
ii IF 25.8
.31.3
iv
P
1969 - Ip
30.2
IIP 28.4
IIIp 26.6

18.2
17.9
1.7.7
21.5

15.4
14.8
14.1
17.0

2.8
. 3.1
3.5
4.5

6.2
5.7
6.4
8.1

9.4
8.7
10.2
11.8

2.4
2.3
1.8
1.7

21.6
20.7
19.5

18.0
16.5
15.6

3.6
4.2
3.8

6,4
5.3
5.1

10.4
9.4
9.2

2.2
2.4
2.0

.

FARM

8.0
8.1
8.4
7.9

2.2
2.1
2.2
2.4

11, 6
10.0
8.3
6.2

2.4
2.2
2.1
1.7

7.3 .
8.1
8.8
8.8

1.8
1.9
2.4
2.6

1

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 non-farm mortgage debt by type of property, where not available,
and interpolations and extrapolations, where required, estimated by Federal
Home Loan Bank Board and the Federal Reserve.
.

2

Residential mortgage debt includes nonfarm 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

32

TOTAL

24
TOTAL
RESIDENTIAL

7 1-4 FAMILY

1965




1967

1969

TABLE 14: FNMA Weekly "Auction" Results
/
WEEK
ENDED
Sept. 2
8
15
22
i
29
Oct.

6
13
20
.27E

,

/

- COMMITMENTS IN $ MILLIONS
IMPLICIT YIELD 2 (per cent)
ACCEPTED
1-YEARH
90901-YEAR 1
6/TOTAL
TOTAL
•
'6"\
MONTH & OVER
OFFERED •
DAY
DAY
& OVER
MONTH
252.5
22.9
94.8
150.5
32.9
8.33
8.34
8.21
29.0
98.7
242.7
152.4
24.6
8.34
8.36
8.22
241.8
33.4
81.7
144.8
29.7
8.36
8.40
8.24
38.1
72.6
247.5
34.3
145.1
8.40
8.44
8.27
69.5
45.5
29.2
257.7
144.2
8.45
8.48
8.30
251.0
217.7
161.6

41.1
147.4
48.6
145.7
134.9
35.7
(135.0)3/

66.0
50.1
60.8

40.3
46.9
38.3

8.50
8.54
8.58

8.52
8.59
8.63

8.34
8.39
8.44

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 50 basis points fee paid by investors
to servicers.
FNMA announced limit of accepted bids for next week's auction.




FNMA WEEKLY "AUCTION" RESULTS

$ Millions
120

AMOUNT OF ACCEPTED BIDS BY COMMITMENT PERIOD

100

60

AND OVER

40

6 MONTHS

20

3 MONTHS

Per cent
8.6

-IMPLICIT YIELD
6-MONTH COMMITMENTS

8.0

7.4
_J 6.8
Millions
400

300

200

TOTAL BIDS RECEIVED

100
TOTAL BIDS
ACCEPTED
JUNE

AUG.

OCT.

1968




DEC.

FEB.

APR.

JUNE .

1969

AUG.

TABLE 15: Private Housing Starts and Permits
STARTS
DATE

1968 - Sept.
Oct.
Nov.
Dec.

SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL|l -FAMILY 2 OR MORE

TOTAL

UNADJUSTED
TYPt. OF FINANCING
FHA VA j OTHER

1,592
1,570
1,733
1,509

944
965
905
922

648
605
828
585

134.3
18.6
140.8
21.4
127.1, 17.5
96.4
16.3

1969 - Jan.
1,878
Feb.
1,686
Mar.
1,584
Apr.
1,563
May
1,509
June
1,469
July
1,371
Aug. £/ 1,383
Sept,ja/1,518

1,066
975
828
797
883
808
765
720
837

812
711
756
766
626
661
606
663
681

101.5
90.0
131.9
159.0
155.5
147.3
125.2
124.9
127.2

1

4.6
5.3
4.2
4.4

14.2
3.8
13.2 . 3.5
18.9
3.9
23.0
4.4
21.1
4.3
21.5
4.6
20.8
4.7
22.4
4.2
17.9
4.8

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2

111.1
114.0
105.4
75.7

1,393
. 1,378
1,425
1,463

83.5
73.3
109.1
131.6
130.1
121.2
99.7
98.3
104.5

1,403
1,477
1,421
1,502
1,323
1,340
1,228
1,245
1,181

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.
2 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 cpermits reflect direct adjustment for differences in the number of working days per
month, as well as other differences in timing and coverage.
• x




PRIVATE HOUSING STARTS AND PERMITS
Monthly,annual rates

Millions of units

SEASONALLY ADJUSTED

2.0

HOUSING STARTS

1.6

1.2

BUILDING PERMITS
(in issuing areas)

PER CENT OF UNADJUSTED TOTAL STARTS

MULTI-FAMILY
(2 or more)

f

GOVERNMENT UNDERWRITTEN
1963




1965

1967

1969

TABLE 16: Mortgage and Bond Yields

DATE .

FHA
MORTGAGES

2

25-YEAR 30-YEAR
1957. - High
. 5.63
1958 - Low
1 5.35
1959r60 - HighJ 6.26
1961-66 - Low
5.43
1966 - High
6.73
1967 - High
n. a.
Low
n. a.
1968 - High
n. a.
Low
n. a.

n.a.
n.a.
n.a.
5.44
6.81
6.81
6.29
7.52
6.78

CONVENTIONAL
MORTGAGES
3
6.00
5.55
6.30
5.80
6.70
6.65
6.40
7.40
6.75

1

NEW
SPREAD BETWEEN YIELDS Aaa CORON CONV. & ' PORATE
FHA MORTBONDS
GAGES
4
.47
.15
.23
.25
.30
.11
-.12
.12
-.27

4.94
3.65
5.25
4.41
5.82
6.51
5.18
6.79
6.15

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES '
1.58
.88
1.69
.77
1.16
1.28
.27
1.20
.26

1969 - Mar.
n. a.
8.05
7.65
-.40
7.37
.68
Apr.
n. a.
8.06
7.75
-.31
7.17
.89
May
n.a.
8.06
7.75
-.31
7.22
.84
June
n. a.
8.38
8.00
-.35
7.58
.77
July
n.a.
8.36
8.10
-.26
7.63
.73
. Aug.
n.a.
8.36
8.20
-.16
7.65
.71
Sept.
n.a.
8.40
8.25
-.15
7.98
.42
- l 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
1
table.
2- 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.
3 Based on FliA-field-office opinion on typical interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring office
cities. Beginning with April I960, 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.




MORTGAGE AND BOND YIELDS

Monthly

Percent

H O M E MORTGAGES:
CONVENTIONAL

Aaa CORPORATE BONDS:
NEW ISSUES

/

W

111 n' 11 n 11111
Basis points

Y I E L D S P R E A D (FHA MORTGAGE VS. NEW ISSUE Aaa CORPORATE BONDS)

1962




1964

1966

1968

1970

TABLE 17: Conventional Mortgage Terms

DATE

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

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

1

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

LOAN
AMT.
($000)

1268
Aug.
Sept.
Oct. Nov.
Dec. .

7.24
7.24
7.23
7.21
7.23

25.5
25.5
25.6
25.4
25.9

73.6
74.2
74.5
74.1
74.0

22.6
22.1
22.7
22.5
24.7

7.12
0.85
0.82
7.11
7.09 . 0.84
0.82
7.07
7.09
0.85

7.16 „ 0.84
7.30
7.26
0.81
7.39
7.32
0.93
7.47
0.96 . 7.62
7.47
7.50
0.88
7.65
7.62
0.84
7.76
0.92
7.76
7.91
0.85
7.85
7.99

25.6
25.6
25.8
25.4
25.8
25.6
25.5
25.2

73.6
73.3
73.8
72.6
73.2
73.0
72.0
72.4

24.1
23.5
24.0
24.8
25.0
24.9
24.5
24.4

7.18
7.28
7.35
7.46
7.54
7.64
7.79
7.89

7.10
0.87*
7.10
0.87 ^
0.88 e7.09
7.07
0.84
7. 09 -"0.89
'

7.26
7.25
7.22
7.21
7.23

22 .7
22 .6
22 .5
22 .7
23,.3

73.0
72.6
72.4
72.9
73.2

18.6
18.3
18.3
18.9
20.4

22..8 72.6
22.,9 72.8
23. 0 72.7
23. 0 71.8
22. 7 71.9
22. 8 71.4
22. 8 71.7
22.7 71.2

20.0
19.6
20.2
19.9
19.7
20.1
20.1
19.9

1969
Jan.
Feb.
Mar i
Apr.
May
June
July
Aug. £/

7.32
0.86
0.86
7.42
0.84
7.49
0.85
7.60
0.83
7.68
0.86 - 7.79
0.91
7.94
0.93
8.04

.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 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.




CONVENTIONAL MORTGAGE TERMS
Monthly

Years

MATURITY

NEW

EXISTING
20

80

L O A N / P R I C E RATIO

NEW

EXISTING

1963




1965

1967

1969
* CHANGE IN SERIES