Full text of H.16 Capital Market Developments : October 6, 1969

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DECONTROLLED AFTER SIX MOUTHS
LIB H A W
L.5.8 Confidential (F.R.)

H Nod
FEDERAL RESERVE MAX.
OF RICHMOND

October 6. 1969,

CAPITAL
MARKET
DEVELOPMENTS

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




INDEX
3-5

Developments in the Corporate and Municipal Bond Markets

6-7

C a p i t a l Market Y i e l d s

8-13

Capital Market Volume

14-17

Stock Market

18-33

Mortgage Market

SYMBOLS:

e

Estimate

p

Preliminary

r
n o.

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
OFFERINGS
OF WEEK
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

90
100
93
74

3
10j> (

8.22
n.a.

7.28

200 e
12 Oe

75e
n.a.

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

1,179
982
775
548
871
n.a.

MOODY'S
•SEASONED
Aaa

YIELDS
BOND BUYER
SEASONED 20
BOND INDEX

5
12
19
26

5.80
5.85
5.85
5.82

6.37
6.33
6.25
6.08

86
132
100
125

80
77
78
72

547
545
462
626

3 '
10£ f

5.83
n.a.

6.19
n. a.—

127 ;
250e

72
n.a.

745
n.a.

WEEK ENDING:

1969 - Sept.

YIELDS
MOODY'S
SEASONED
NEW ISSUE 1
Aaa

BONDS SCHEDULED
WITHIN 28 DAYS

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:

Sc-v footnotes to Table 3




TABLE 2: Details on Inventories
:

DATE
OFFERED

. 1 • AMOUNT
(MIL, $)
1

10/2
10/2
10/2
9/29
9/24
9/19

,OFFERED

.

9/7
9/23
9/24
9/24

/ 1
|

35.0
15.0
50.0
35.0
20.0
14.0

DATE '
I RELEXSED
9/29
9/29
9/30
9/30

CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK
ORIGINAL 1 RATING AND
ISSUER
.
YIELD CALL PROTECTION
COUPON
Illinois Pwr. 1st
Nashua Corp. Debs.
Columbia Gas
Cincinnati Surburban Tel.
Northern Indiana P. S. 1st
American Export Lines

8.35
9-1/2
9
8-3/8
8-3/8
8.05

8.35
9.50
8.95
8.25
8.13
8.05

Aa
Baa
A
Aaa
Aa
Aaa

5
10
5
5
5

yrs.
yrs.
yrs.
yrs.
yrs.
——

CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK
ORIGINAL INCREASE
ISSUER
COUPON
IN YIELD
YTET.D
. 12.0
Wisconsin Michigan Pwr.
8-1/2
8.45
+ 25
25.0
Baltimore Gas & Electric
8-1/4
8.15
+ 10
40.0
Panhandle Eastern P.L.
8.65
8-5/8
+ 25
50.0
Transcontinental Gas P.L.
8.95
8-7/8
+ 31
AMOUNT

1

ESTIMATED PROPORTION SOLD
50%
,75%
50%
95%
98%
95%

'

\
\

'

/
/\

,

RATING AND ESTIMATED PROCALL PROT. PORTION RELEASED
65%
A
5 yrs,
25%
Aaa 5 yrs
25%
A
—
Baa 10 yrs
25%

INVENTORIES 1
MUNICIPALS

DATE
1969

Sept.

Oct.

IN SYNDICATE
5
12
19
26
3j>/

359
328
298
292
335

74
50
36
42
50

CORPORATES
IN SYNDICATE
21
1
30
92
49

N.C. - No call protection.
1

All

figures in millions of dollars. Blue List is daily average for v e v k ended Fridav,except for latest week
of three days ended Wednesday. All other figures are as o f Friday.

which is daily average



BONDS IN SYNDICATE
1

Millions of dollars

i i i p i n i i i i
CORPORATE BONDS IN SYNDICATE

i

i

i

i

i

i

i

i

i

i

i

r

i

i—i—i—

—I—l
1—1
1 1 1—I
1—
MUNICIPAL BONDS IN SYNDICATE

SEPT.

DEC.

*7




MAR.

JUN.

1961

SEPT.

DEC.

MAR.

JUN.

1969

SEPT.

DEC.

/•

TABLE 3:. High Grade Bond Yields

NEW
CORPORATE
Aaa 1

DATE

MOODY'S SEASONED
• CORPORATE Aaa 2

U.S. GOVERNMENT
20-YEAR
CONSTANT
MATURITIES 3

BOND ,
BUYER'S
SEASONED
. MUNICIPALS 4

1967 - High
Low

6.55(12/8)
5.11(2/10)

6.24(2/29)
5.00(2/10)

5.73(11/7)
4.48(1/20)

4.45(12/7)
3.40(2/2)

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

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

7.28(10/3)
6.55(1/3)

6.78(10/3)
5.96(1/24)

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

7.05
7.12
7.16
7.19

6.41
6.46
6.55
6.64

6.36
6.33
6.25
6.08

1969 - Sept.

5
12
19
1 26

>

7.90
, 8.02
1 8.04
8.13

, ,
|

Oct.
6.19
8.22
3p/
6.78
7.28
New corporate issues, with call protection, adjusted (as-described in
footnote 1 of Table 1) to a Aaa basis.
2
Weekly average of daily figures. Average term of bonds included is
22-24 years.
3
Weekly average of daily figures.
4
Thursday.figures. The average rating of the 20 bonds used in this index
falls midway between the four top groups as classified by Moody's Investors Service.
Note--Highs and lows are for individual series and may be on different dates
for different series.
1




HIGH GRADE BOND YIELDS

NEW CORPORATE Aaa

MOODY'S
V
CORPORATE Aaa

U S. GOVT. 20-YR.
CONSTANT MATURITIES

BOND BUYER MUNICIPAL

1965




1966

1967

1968

1969

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

PERIOD
1969p

STATE AND LOCAL 2

1

1968p

1967

•

1969 p

1967

1968 p

January
February.
March

2,075
2,045
2,098

1,771
1,608
1,799

1,684
1,418
2,362

!
!

1,263
988
540

1,178
1,158
1,404

1,492
1,236
1,450

April
May
June

2,748
2,076
2,480

1,428
1,866
2,411

2,015
1,518
2,674

1
1

1,800
1,113

1,318
1,143
1,395

1,130
1,254
1,497

July
August
September

2,360e
l,600e
2,480a

2,143
1,432
1,557

2,589
2,481
1,763

2,129
1,767
2,054

2,409
1,500
2,385

6,218
7,304
6,440c

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

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

J.3,522
19,962e

10,882
16,015
21,965

11,672
18,504
24,798

October
November
December
1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

1st half'
Three quarters
Year

|
;
i
j

-

711

1,063
790
525 e

1,469
1,699
1,444

950
860
1,340

2,230
1,021
1,115

975
1,401
1,182

2,791
3,624
2,378*

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

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

Quarter
Quarter
Quarter
Quarter

Year
1
2
3

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

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

20,973

23,814

Securities and E x c ' . C o m m i s s i o n estimates of gross proceeds.
Investment Bankers Association of America estimates of principal amounts.
Total gross proceeds excluding offerings of sales and consumer finance
companies.




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

QUARTER
OR
MONTH

TOTAL

_______
II
III
IV
1969 - I
lie/

GROSS PROCEEDS BY
TYPE OF ISSUE
COMMON
MEMO:
BONDS
AND
ISSUES INCLUDED \ MFG.
PUBLICLY PRIVATELY PFD.
OFFERED
PLACED
STOCK
FOREIGN | CONVERTIBLE

5,T78
5,705
5,133
5,951
6,218
7,304

2,465
3,105
2,606
2,555
2,657
3,411

1,724
1,644
1,361
1,922
1,540
1,623

989
956
1,166
1,474
2,023
2,268

313
172
124
113
215
227

.

584
758
1,037
902
1,355
1,077

GROSS PROCEEDS BY
TYPE OF ISSUER
PUBLIC
UTILITY

1,907
1,703
1,657
1,712
1,407
1,723

1968 - Aug.
1,433
637
396
362
400
49
211
Sept.
1,556
727
433
398
28
221
453
Oct.
2,129
1,009
595
525
365
640
24
Nov.
1,767
939
362
466
211
49
421
Dec.
2,055
607
965
326
651
483
40
v
1969, - Jan.
2,075 \
980
636
460
103
376
403
Feb.
2,045
842
395
808
578
513
74
Mar.
2,098
835
755
38
401
491
509
2,748
1,268
649
830
62
430
513
Apr.
510
694
28
463
569
2,076
871
May
2,480
1,272
464
744
137
,
184
641
June
1,360
500
500
n. a.
July e/ 2,360
200
475
700
200
Aug.e/ 1,600
500
400
n.a.
250
1 Other issuers are extractive, railroad and other transportation, real estate
and finance, and commercial and other.
Source: Securities and Exchange Commission. Quarterly supplements are availsable .




1,442
1,244
1,160
1,435
1,346

COMMUNICATIONS

OTHER
ISSUERS 1

1,878

422
536
490
319
473
432

1,407
2,223
1,825
2,483
2,993
3,266

446
475
674
443
319
627
315
404
784
392
702

95
156
115
162
41
186
56
231
44
197
191

530
472
700
741
1,044
860
1,161
972
1,405
915
946

370
450

300
175

1,215
725

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

ISSUER

TYPE 2

AMOUNT
(MILLIONS
OF
DOLLARS)

September 2 through October 3. 1969
COUPON
MOODY ' S.'
OFFERRATE OR
RAT INC.
ING
NET
INTERMATURITY
YIELD
EST COST

Corporate
Society Corporation
Lotig Island Lighting Co.
Weyerhaeuser Company

15.
Conv. debs.
35.
1st mtg.
Conv. ciim.
25.
pfd. stk.
100.
S.F. debs.
50
Notes
Com. stk.
15.
Conv. debs.
100.
S.F. debs.
35.
\ 150.
Debs.
Com. stk.
16,
Benef. Int.
1st Mtg.
&
S.F. debs.
30,
1st Mtg.
40,
29
Com. stk.
30
Benf. int.
Cum. pref. stk. 15
Conv. sub. debsJO
1st Pipeline
50
Conv. debs.
50
Benf. int.
100
1st mtg.
15

R. J. Reynolds Tabacco Co.
R. J. Reynolds Tabacco Co.
Saxon Industries
Phillip Morris Inc.
Beatrice Foods Company
Southwestern Bell Tel. Co.
Price Capital Corporation
First Mtg. Investors
Gulf States Utilities Co.
Avco Delta Corp.
Ohio Edison
Carolina Pwr. & Light
Medical Mortgage Investors
Northern Natural Gas
. Hub 1 in Inc.
Tenneco Inc.
Diversified Mtg. Investors
Diversified Mtg. Investors
New England Pwr. Co,
Transcontinental Gas Pipeline Corporation
1st pipeline
50.
Computer Sciences Corp.
Conv. sub. debs. 50,
North Indiana Public Srv. Co. 1st mtg.
Washington Gas Light Co.
1st mtg.
Baltimore Gas & Electric
1st 6c ref.
Panhandle Eastern Pipeline Co. Cum. pfd. stk.
Panhandle Eastern Pipeline Oo. Debs.
United Tele. Co. of Ohio
1st mtg.
Chemetron Corporation
Debs.
General Acceptance Corp. 4/ Sr. debs.




1994
1999

6
8.20

6.00
8.20

N.R.
Aa

1994
1974

7-7/8
8-1/8

7.90
8.13

Aa
Aa

1994
1994
2005

6.00
7-7/8
8-1/4

6.00
7.90
8.14

Baa
Aa
Aaa

1999
1989
1999

8*1/8
9-1/4
8-1/4

8.08
9.25
8.07

Aa
N.R.
Aaa

1994
1989
1989

5-3/4
9.00
6-1/2

5.75
8.95
6-1/2

1999

8-3/8

8.20

1990
1994
1974
1994
1999

8-7/8
6.00
8-3/8
8-3/4
8-1/4

8.95
6.00
8.13
8.70
8.15

Ba
Baa

.

Aa
Baa
B
Aa
A
Aaa

1989

8-5/8

8.65

A

1999
1994

8-7/8
9.00

8.88
9.00

A
Baa

TABLE 6: Large Long-term Public Security Issues for New Capital
(Other than U.S. Treasury) 1
September 2 through October 3, 1969.
• .

ISSUER

TYPE2

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

COUPON
RATE OR
NET INTEREST COST

OFFERING
YIELD

MOODY'S
RATING '

Corporate (Continued)
Illinois Power Co.
Northern States Pwr. Co.
Cincinnati & Suburban Bell
Telephone Co.
*New England Telephone &
Telegraph Co.
^Consolidated Edison Co. of
N. Y.
*Gen'l. Public Utilities
Corporation
Columbia Gas System Inc.
Nashua Corporation

1st mtg.
1st mtg.

35.0
45.0

1999
1999

8.35
8.00

8. 35
8. 35

Aa
Aa

Debs.

35.0

2009

8-3/8

8. 25

Aaa

8.,95
9. 25

A
Baa

Com. stk.

42.4

Com. stk.

46,6

Com. stk.
Debs.
Debs.

28.8
50.0
15.0

1994
1989

9.00
9-1/4

G.O.
Rev. bds.
G.O.
V.P.
G.O.
G.O.
Rev.
Bds.

47.0
24.0
13,0
20.5
2.0
8.2
2.2
16.1

1983/84/87
1990-2003
1970-79
1970-90
1970-99
1970
1975-94
1975-94

6.40
6.49
5.80
7.68
3.00
5-5/8
3.75
3.50

Special Oblig.
G.O.
G.O.

14.4
14.8
30.0

1971-90
1971-90
1970-94

Rev.

22.0

1971-99

State & local Government
Oregon, State of
Houston, Texas
St. Louis Co., Missouri
Newark, New Jersey
Alaska, State of
Alaska, State of
West Virginia, State of
West Virginia, State of
Puerto Rico Urban Renewal
& Housing Corp.
San Jose, California
Memphis, Tenn.
Washington State Bd. for
Community Education




'

6

.15-6.25/40

'

—

5;.25-5.75
6..20-7.40
3..00

'

Aa
Aa
Aa
Baa
Baa-1
Baa-1

3,.75
3.,50

—

5.96
6.02

5 .50-6.60
5 .15-6.00
5 .10-6.25

A
A-l
Aa

7.00

5 .70-7,00

A

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

ISSUER

1

TYPE 2

AMOUNT
(MILLIONS
OF
DOLLARS)

September 2 through October 3. 1Q6Q
COUPON
|
RATE OR
j OFFKRMOODY'S
MATURITY NET INTER- 1
IN(:
RATING
EST COST
j YIELD

Other
Federal Land Bank
•Federal Home Loan Bank
American Exports
Isbrandtsen Lines
HAA
FNMA

Bonds
Bonds

337;0
250.0

Gov't. Insured
Bonds
Debs.

19.7
49.0
200.0

(1972)
1971
1986
1970-2010
1972

8:35
8.38

8.35
8.38

8.05
5.99
8.70

8.05
5.00-6. 00
8.70

Aaa
Aaa

Rights 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;
Kev.-Ut., revenue obligations secured only by income from public utilities*,'
Rev.-Q.-Ut., revenue bonds secured only by income from-quas i-ut i'li ties ;• Rev.-S .T . ,
revenue bonds secured by revenue from specific taxes only; Rev.-Rent., revenue
bonds secured solely by lease payments.
I n c l u d e s foreign government and International Bank for Reconstruction and
Development issues and non-quaranteed issues by Federal Agencies.
Debenture priced at 9-1/2 due, Oct. 1, 1972, to yield 9.50; debentures priced at 8-1/2
due October 1, 1974, to yield 8.50, not rated.




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

ISSUER

TYPE

^

Q c t o b e t

AMOUNT
(MILLIONS
OF
DOLLARS)

3

1969.

APPROXIMATE DATE
OF OFFERING

Corporate
Family Finance Corp.
Debs.
General Telephone Co. of
1st mtg.
Illinois
1st mtg.
Dayton Pwr. & Light Co.
Conv. debs.
U. S. Bancorporation
Debs.
Household Finance
Uris Building
Conv. debs.
Kansas-Nebraska Natural
Debs.
Gas Co.
Bonds
Union Electric Company
Notes
*St. Paul Companies, Inc.
Appalachian Pwr. Co.
Bonds
*Signal Companies, Inc.
S.F. debs.
Associates Investment Co.
Sr. debs.
Southern California Edison
Bonds
Company
*Texas Eastern Transmission
1st pipeline
Corporation
Mountain States Telephone
& Telegraph
Debs.
Data Processing Financial
Debs.
& General Corporation
Pfd. stk.
Consumers Pwr. Company
Conv. sub. debs.
First & Merchants Corp.
Bonds
Pacific Pwr. & Light
Bonds
Wisconsin Elec; Pwr. Co.
S.F. debs.
Northern Natural Gas Co.
Bonds
Alabama Pwr. Company
Bonds
Tuscon Gas & Elec. Co.
Consolidated Natural Gas Co. Debs.
National Health EnterDebs.
prises Inc.
Conv. debs.
Collins & Aikeman
Investment Properties
Bonds
Association




50.0

October

7

15.0
30.0
25.0
75.0
35.0

October
October
October
October
October

7
8
9
14
15

15.0
40.0
25.0
60.0
100.0
35.0

October
October
October
October
October
October

15
15
15
16
16
16

100.0

October

21

50.0

October

21

100.0

October

22

35.0
35.0
20.0
20.0
40.0
50.0
35.0
15.0
30.0
15.0

October
October
October
October
October
October
October
October
October
October

22
23
24
27
28
28
29
29
30

15.0

October

78.8

•

October

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

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

State & local Government
Michigan, State of
Philadelphia S/D,Pa.
N. Y. State Dorm. Auth.
Washington Co., Tenn.
New York State
Warren Consolidated Sch.
Dist., Mich.
Hawaii, State of
Los Angeles Dept. of Wtr.
& Pwr.
Chicago, 111.
Washington, State of
Los Angeles Co. Flood
Control Dist.
*Pittsburgh, Penna.
Detroit City S/D, Mich.
*Alabama, State of
*Jackson Co., Mo.

Bonds
Bonds
Bonds
G.O.
G.O.

30.0
60.0
28;2
15.2
84.0

Oct.
Oct.
Oct;
Oct.
Oct.

7
7
7
8
8

Bonds
Rev.

13.0
45.0

Oct.
Oct.

8
8

Rev.
Bonds
G.O, & Rev.

39.0
20.0
39.2

Oct. 8
Oct. 8
Oct. 14

Bonds
Bonds
Bonds
Bonds
Bonds

15:0
10.0
18.0
13.0
33.0

Oct.
Oct.
Oct.
Oct.
Oct.

14
21
21
21
21

Bonds

100.0

Oct.

7

Other
Tennessee Valley Authority

*
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: Postponements this week were: Louisiana, State of, no bids received
because of 6% ceiling—postponed indefinitely.




*

TABLE 8: Stock Prices and Volume
STOCK PRICES 1
DATE

S&P
500

•

1967 - High .
Low

AMEX4

NYSE

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)

72.7(5/2)
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

3j>,'93.19

808.41

26.57

51.3

35.3

Oct.

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

D.J. - IND.

TRADING; VOLUME 2

1

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

2

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-h6ur 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.

3

1941-43 = 10.

4

Average dollar value of shares listed.




Highs and lows are

15

STOCK PRICES AND TRADING VOLUME
AMEX

Weekly

STOCK PRICES
AMEX PRICE LEVEL INDEX

.
1
I
AMEX TRADING VOLUME (TOTAL FOR WEEK)

- NYSE TRADING VOLUME (TOTAL FOR WEEK)

1965

1966




1967

1968 "

1969

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:

'

•

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/
Aug. £/

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

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

-40
-70
-140
-50

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

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

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

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

-220
-120
-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:

1

2
3

—

.

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.




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

DATE

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

1966
1967
1968
1969 to date
1968 - June
July
Aug.

2,557
5,082
4,186
1,346
453
186
238

1969 - June
July
Aug.

323
" -164
95

4.9
9.3
7.0
——
—
—

--

227
2,376
1,143
-155
-111
64
181
-266
-266
24

SAVINGS ,
& LOAN ASSOCIATIONS
SHARE CAPITAL
NET
ANNUAL
NEW
NET
GROWTH '
MONEY2
1
FLOW
RATE
Not Seasonally Adiusted
3,584
3.2
-552
10,687
9.4
6,129
7,396
5.9
2,676
2,261
-277
—
—
1,622
158
——
-588
-606
389
366
-1,359
-1,110
3

—

-116
-1,122
-15

TOTAL
DEPOSITS
ANNUAL
NET
, GROWTH
FLOW
RATE 1

NET
.
NEW2
MONEY

6,141
15,769
11,582
3,607

-325
8,505
3,819
-432

2,075
-402
627
1,682
-1,274
98

3.8
9.4
6.3

47
-542
547

.

——

-382
-1,388
-9

Seasonally Adiusted
1969 ^ Mar.
Apr.
May
June
July
Aug.£/

1
2
3

382
160
357
178
-47
191

7.1
3.0
6.6
3.3
-0.9
3.5

——

•w
——

894
190
498
491
-40
275

8.1
1.7
4.5
4.4
-0.4
2.5

__
• ——
— —•

1,276
350
855
669
-87
466

7.8
2.1
5.2
4.0
-0.5
2.8

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)
lonthly

Millions <of dollars

2000
1600
TOTAL

1200

800
400

+

0
400

1200
SAVINGS & LOANS

800
400
• +

0

400

800
400
.

+

0

1965

1966




1M7

400
I I I l l 1 I I I I I I l l II l
I I
1968
1969

7
TABLE 11: Mortgage Commitments at Selected Thrift Institutions

DATE

TOTAL

OUTSTANDING COMMITMENTS
|
NET CHANGE
ALL
\ ..ALLMUTUAL
I
SAVINGS
SAVINGS- &
TOTAL
SAVINGS &
BANKS
LOAN
LOAN
(N.Y. STATE)
ASSOCIATIONS
ASSOCIATIONS
(Billions of Dollars, Sea 3onally Adjusted) 1/

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

9.0
9.1
9.5
9.7
9.7

6.1
6.2
6.4
6.5
6.6

2.9
2.9
3.0
3.2
3.1

:16
.14
.35
.27
-.01

.10
.22
.10
.08

1969 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.

9.9
10.1
10.3
10.5
10.3
10.2
9.9
9.5

6.7
6.9
7.0
7.2
7.1
7.0
6.8
6.5

3.2
3.2
3.3
3.3
3.2
3.2
3.1
3.0

.15
.25
.17
.19
-.19
-.09
-.28
-.43

.08
.22
.09
.18
-40
-.05
-.21
-.32

1

1

.

MUTUAL
SAVINGS
"BANKS
(N.Y. STATE)

--

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 improcess. 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 1 9 6 7

1960




1962

1964

1966

1968

1970

TABLE 12: Net Change in Mortgage Holdings

DATE

TOTAL
INCLUDING
FNMA-GNMA

TOTAL

1

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

LIFE
INSURANCE
COMPANIES

FNMA-GNMA

Not Seasonally Adjusted
18,197
19,988
23,807

15,874
18,191
21,399

4,705
4,369
6,677

2,760
3,118
2,796

3,761
7,538
9,330

4,648
2,914
2,496

2,323
1,797
2,508

1968 - Mar.
Apr,
May
June
July
Aug,

1,768
1,978
2,238
2,125
1,851
1,982

1,494
1,732
2,003
1,905
1,699
-— 1 , 8 4 1

400
616
616
616
533
533

137
160
203
219
248
233

789
879
957
901
718
874

168
88
216
169
200
201

274
246
235
220
152
141

1969 - Mar.
Apr.
May
June
July
Aug.

1,945
2,202
2,165
2,412
1,688

1,740
2,011
1,980
2,190
1,395

500
600
600
600
200
400

198
204
233
230
215
181

917
1,026
988
1,216
865
865

125
181
159
144
115

205
191
185
222
293
528

1969 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.

2,143
2,292
2,022
2,083
2,031
2,144
1,656

104
258
130
202
179
170
169
n. a.

155
183
196
206
221
271
324
543

1966
1967
1968

--

—

Seasonally Adjusted
1,988
2,109
1,826
1,877
1,810
1,873
1,332

--

--

691
708
636
525
531
439
131
288

303
269
208
. 253
258
231
163
- 147

890
874
852
897
842
1,033
869
746

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 1 9 6 8 , 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 a d j u s t m e n t s a r e n o t made in t h e m o n t h l y series.. Altogether, these groups
a c c o u n t e d for 87 per cent of the net increase estimated for all holders in 1967.




NET CHANGE IN MORTGAGE HOLDINGS (seasonally adjusted)
Monthly

Billions of d o l l a r s

3.0

2.5
TOTAL, INCL. FNMA - GNMA

2.0

FINANCIAL INSTITUTIONS

1.5

1.0

1966




1967

1968

1969

24

TABLE 13: Net Increases in Mrnvtaaop Debt Outstanding
Billions of dollars, SAAR 2

-

MULT.I - AND
COMMERCIAL

QUARTER

TOTAL

RESIDENTIAL 2

1 - t o 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

8.0
8.1
8.4
7.9

2.2
2.1
2.2
2.4

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

11.6
10.0
8.3
6.2

2.4
2.2
2.1
1.7

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

7.3
8.1
8.8
8.8

1.8
1.9
2.4
2.6

1968 - I P '26.9
IIP 25.8
IIII 25.8
iv p 31.3

18.2
17.9
17.7
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

1969 - Ip
IIP

21. 1
19.3

18.0
16.1

3.2
3.2

111

10.6
9.0

2.0
1.9

1

2

30.2
27.1

MULTIFAMILY

1

COMMERCIAL

5.9

FARM

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.
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

TOTAL

TOTAL
RESIDENTIAL

zx

I 1-4 FAMILY

MULTIFAMILY

IMS




TABLE 14: FN MA Weekly "Auction^ Results

WEEK
ENDED

/

.COMMITMENTS IN $ MILLIONS
IMPLICIT YIELD 2 (per cent)
, ACCEPTED
1-YEARll
901-YEAR 1
90TOTAL
66TOTAL
& OVER
MONTH & OVER
DAY
DAY
OFFERED
MONTH

July

7
14
22
28

195.5
177.1
250.9
298.2

12110
129.7
130.9
129.6

24.1
17.4
19.1
15.9

85.1
100.9
93.5
92.4

11.7
11.5
18.3
21.3

8.42
8.39
8.30
8.25

8.47
8.40
8.31
8.26

8.31
8.29
8.19
8.15

Aug.

4
11
18
25

282.5
275.2
269.7
250.6

125.4
129.3
129.2
150.8

19.1
16.7
14.7
13.5

78.9
82.7
88.3
112.1

27.4
29.9
26.3
25.2

8.27
8.28
8.31
8.32

8.28
8.29
8.31
8.32

8.16
8.16
8.18
8.19

252.5
242.7
1241.8
j 247.5
' 257.7 .

150.5
152.4
144.8
145.1
144.2

22.9
29.0
33.4
' 38.1
45.5

94.8
98.7
81.7
72.6
69.5

32.9
24.6
29.7
34.3
29.2

8.33
8.34
8.36
8.40
8.45

8.34
8.36
. 8.40
8.44
8.48

8.21
8.22
8.24
8.27
8.30

Sept. 2
8
15
22
29
Oct.

6j>

(145.0) 3 A

Note: Under the FNMA auction system, approved sellers of Governmentunderwritten mortgages bid for FNMA forward purchase commitments, subject to ian 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 aqd 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

3

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




WEEKLY "AUCTION" RESULTS
,

|

$

—

AMOUNT OF ACCEPTED BIDS BY COMMITMENT PERIOD

Ilions
120

100
80
1 YEAR
AND OVER

60

i 6 MONTHS

40

20

rxy\
1

I

1

1

1

I

0
cent
8.6

IMPLICIT YIELD
6-MONTH COMMITMENTS

8.0

7.4
6.8
$ Milli ons

100

$00

100

TOTAL BIDS RECEIVED

LOO

TOTAL BIDS
ACCEPTED

L_J

1968




0

TABLE 15: Private Housing Starts-and Permits
BUILDING
PERMITS
(SEASONALLY
ADJUSTED
. ANNUAL
RATE) 2

STARTS

DATE

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

SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE

904
867
944
965
905
922

627
651
648
605
828
585

139.8
136.6
134.3
140.8
127.1
96.4

18.8
20.9
18.6
21.4
17.5
16,3

4.9
4.8
4.6
5.3
4.2
4.4

116.2
110.9
111.1
114.0
105.4
75.7

1969 - Jan.
1,878 1,066
Feb.
1,686
975
1,584
828
Mar.
1,563
Apr.
797
883
May
1,509
1,469
808
June
July p/1,358
756
'1,336
Aug. • j>|
732

812
711
756
766
626
661
602
604

101.5
90.0
131.9
159.0
155.5
147.3
124.1
120.7

14.2
13.2
18.9
23.0
21.1
21.5
20.8
22.4

3.8
3.5
3.9
.4.4
4.3
4.6
4.7
4.2

83.5
73.3
109.1
131.6
130.1
121.2
98.6
94.1

1

2

1,531
1,518
1,592
1,570
1,733
1,509

TOTAL

UNADJUSTED
TYP E OF FINANCING
FHA VA
OTHER

-

1,289
1,290
1,393
1,378
1,425
1,463
1,403
1,477
1,421
1,502
1,323
1,340
1,228
1,193

Total starts are Census estimates including farm for both permit-issuing and
nou-issuing areas. A dwelling unit is started when excavation begins; all units
in an apartment structure are considered started at that time. FHA and VA
starts are units started under commitments by these agencies to insure or guarantee the mortgages. As reported by FHA and VA, a unit is started when a field
office receives the first compliance inspection report, which is made before
footings are poured in some cases but normally after the foundations have been
completed. Other starts are derived as a residual, although total and FHA and
VA starts are not strictly comparable in concept or timing; other starts include both units financed by conventional mortgages and units without mortgages.
Building permits before January 1963 are Census estimates for about 10,000 areas
.identified as having a local building permit system in 1959. Estimates beginning
January 1963 are for approximately 12,000 and beginning January 1967 13,000, or
all known permit-issuing places. Unlike starts, seasonally adjusted building permits 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
(in issuing areas)

PER CENT OF UNADJUSTED TOTAL STARTS

MULTIFAMILY
(2 or more)

y

GOVERNMENT UNDERWRITTEN
1963




1965

1967

1969

TABLE 16: Mortgage and Bond Yields
FHA
MORTGAGES

2

DATE
25-YEAR 30-YEAR

CONVENTIONAL
MORTGAGES
3

1957 - H i g h
1958 - Low
1959-60 - High
1961-66 - Low
1966 - High
1967 - High
Low
1968 - High
Low

5.63
5.35
6.26
5.43
6.73
n. a.
n. a.
n.a.
n.a.

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

6.00
5.55
6.30
5.80
6.70
6.65
6.40
7.30
6.75

1969 - Mar.
Apr.
May
June
July
Aug.

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

8.05
8.06
8.06
8.38
8.36
8.36

7.65
7.75
7.75
8.00
8.10
8.20

1

SPREAD BETWEEN YIELDS
ON CONV. &
FHA MORTGAGES

-

1

NEW
Aaa .CORPORATE
BONDS
4

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS .
• AND
FHA MORTGAGES

.47
.15
. . 23
.25
.30
.11
-. 12
.02 ;
-.27

4.94
3.65
5.25
4.41
5.82
6.51
5.18
6.79
6.15

1.58
.88
1.69
.77
1.16
1.28
.27
1.20
.26

-.40
-.31
-.31
-.35
-.26
-.16

7.37
7.17
7.22
7.58
7.63
7.65

.68
.89
.84
.77
.73
.71

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.
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 FHA-field-office opinion on typical interest rates (rounded) on con" ventional first mortgages prevailing in the market areas of insuring office
cities. Beginning with April 1960, fate relates only, to new-home mortgages;
prior to that date, rate related to both new as well as existing-home-mortgages. Dashed line indicates tit: s change in the Series.
4
See note for Table 1.
•




-

.

31

MORTGAGE AND BOND YIELDS
Monthly

Percent

HOME MORTGAGES:
CONVENTIONAL

FHA

Aaa CORPORATE BONDS:
NEW ISSUES

A

/

V

Basis points

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

—

200

100

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
'

1268
Aug.
Sept.
Oct.
Nov.
Dec.

7.10
7.10
7.09
7.07
7.09

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

1

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

LOAN
AMT.
($000)

. —=

0.87
0.87
0.88
0.84
0.89

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
7.11
7.09
7.07
7.09

0.85
0.82
0.84
0.82.
0.85

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
2Q. 4

7.16 . 0.84
7.26
0.81
0.93
7.32
0.96
7.47
0.88
7.50
7.62
0.84
0.92
7.76
0.85
7.85

7.30
7.39
7.47
7.62
7.65
7.76
7.91
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

0.86
7.18
0.86
7.28
7.35 .. 0.84
7.46
0.85
0.83
7.54
0.86
7.64
0.91
7.79
0.93
7.89

7.32
7.42
7.49
7.60
7.68
7.79
7.94
8.04

22.8
22.9
23.0
23.0
22.7
22.8
22.8
22.7

72.6
72.8
72.7
71.8
71.9
71.4
71.7
71.2

20.0
19.6
20.2
. 19.9
19.7
20.1
20.1
19.9

1969
Jan.
Feb. '
Mar.
Apr.
May June
July
Aug. 2/

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 owncrbuilders. Related series on conventional mortgage rates only, based on unweighted
opinions of field-office directors of the Federal Housing Administration, are available
somewhat sooner than the results of the FHLBB-FDIC survey, and are included-in the case
of new home mortgage rates--in Table 16.

2

Fees -and charges-.-expressed as a percentage of the principal mortgage amount — include
loan commissions, fees, discounts, and other "charges which provide added income to the
lender and are paid by the borrower. They exclude any closing costs related solely to
transfer of property ownership.

3

Includes fees & charges amortized over a 10 year period in addition to the contract
interest rate.




CONVENTIONAL MORTGAGE TERMS
Years

Monthly

30

MATURITY
NEW

EXISTING

LOAN/PRICE RATIO

NEW
EXISTING

1963




1965

1M7
* CHANGE IN SERIES