Full text of H.16 Capital Market Developments : September 8, 1969

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

D E C O N T R O L L E D AFTER SIX MOHTHS

a
tSB
fBHW-

L . 5 . 8 Confidential ( F . R . )

-

September 8 ,

CAPIIAL
DEVELOPMENTS

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




1969.

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
YIELDS
MOODY'S
SEASONED
NEW ISSUE'
Aaa

WEEK ENDING:

1969 - Aug.

Sept.

1
8
15
22
29
5
12£

WEEK ENDING:

1969 - Aug.

Sept.

1
8
15
22
29
5
12 £/

f

CORPORATE BOND MARKET
VOLUME;2
GROSS
OFFERINGS

PER CENT
SOLD BY END
OF WEEK

BONDS SCHEDULED
WITHIN 28 DAYS

7.75
7.57
7.53
7.61
7.82

7.05
7.01
6.96
6.95
6.98

243
148
208
189
141

97
99
80
78
86

467
468
562
513
r/ 902

7.90
n. a. .

7.03
n. a.

204
300e

90
n. a.

1,179
n. a.

YIELDS
BOND BUYER
MOODY'S
SEASONED 20
SEASONED
Aaa
BOND INDEX
5.78
5.70
.5.73
5.73
5.80
5.80 .

5.93
5.80
5.91
6.02
6.26
6.37
11. a.

MUNICIPAL BOND MARKET
VOLUME 2
GROSS
OFFERINGS
141
268
219
172
r/147
86
120e

PER CENT
SOLD BY END
OF WEEK

BONDS SCHEDULED
WITHIN 28 DAYS \

97
80
64
61
48

542
405
392
365
644

80
n. a.

547
11. 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
CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK
ORIGINAL
RATING AND
YIELD CALL PROTECTION
COUPON
ISSUER

AMOUNT
(MIL. ,$)

DATE
OFFERED
9/4
9/4
8/14

100.0
50.0
15.0

DATE
OFFERED 1 RELE\SED
8/26

9/4

R. J. Reynolds Tabacco
R. J. Reynolds Tabacco
Gas Service

Sept.

7.90
8.13
8.20

Aa
Aa
A

10 yrs.
5 yrs.
5 yrs.

90%
85%
75%

V

CORPORATE BONDS RELEASED FROM SYNDICATE DURING\LATEST WEEK
ORIGINAL INCREASE RATING AND ESTIMATED PROAMOUNT
ISSUER
COUPON
IN YIELD CALL PROT. PORTION RELEASED
YIELD
65.0

Georgia

Pwr. 1st

8-1/8

8.10

INVENTORIES 1
MUNICIPALS
BLUE LIST
|
IN SYNDICATE

DATE
1969 - Aug.

7-7/8
8-1/8
8-1/8

ESTIMATED .PROPORTION SOLD

8
15
22
29
5j>/

393
367
453
r/455
402

59
112
125
141
74

17

Aa

5 yrs

30%

CORPORATES
IN SYNDICATE
•

8
42
90
23
21

N.C. - No call.protection.
1

All figures in millions of dollars. . Blue List is daily average for week ended Friday, except for latest week
FRASER
which is daily average of three days ended Wednesday. All other figures are as of Friday.

Digitized for


t

f

BONDS IN SYNDICATE
Millions of dollars

~1 I T
| I 1
1 • I I I — l
MUNICIPAL BONDS IN SYNDICATE

I

I

300

200

SEPT.

DEC

•7




I,

100

JUN.

isse

SEPT.

DEC.

MAR.

JUN.

1969

SEPT.

DEC.

T A B L E 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

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(12/26)
4.07(/8/8)

1969 - High
Low

7.96(9/5)
6.90(2/21)

7.10(7/11)
6.55(1/3)

6.41(9/5)
5.96(1/24)

6.37(9/4)
4.62(1/28)

1969 - Aug.

7.75
7.57
7.53
7.61
7.82
7.90

7.05
7.00
6.96
6.95
6.98
7.03

6.26
6.18
6.21
6.20
6.28
6.41

5.93
5.80
5.91
6.02
6.26
6.37

1
8
15
22
29
Sept. 5j>/

i
1
'
1

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




HIGH GRADE BOND YIELDS

NEW CORPORATE Aaa

MOODY'S
V
CORPORATE Aaa

U.S. GOVT 2 0 YR.
CONSTANT MATURITIES

BOND BUYER MUNICIPAL Aaa

1965




1966

1967

1968

1969

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

PERIOD
1969p

STATE AND LOCAL 2

1

1968p

1967

January
February
March

2^075
2,045
2,098

1,771
1,608
1,799

1,684
1,418
2,362

April
May
June

2,707
2,102
2,560e

1,428
1,866
2,411

2,015
1,518
.2,674

July
August
September-.

2,360e
l,600e
2,050e

October
November
December
1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

1st half
Three quarters
Year

6,218
7,369
6,010
-

13,587e
19,597e

1969 p
1
1,263
1
988
! .
540

1966p

1967

1,178
1,158
1,404

1,492
1,236
1,450

1,318
1,143
1,395

1,130
1,254
1,497

i
1

1,800
1,113

711

i
j

1,063
850e
850e

1,469
1,699
1,444

950
860
1,340

2,230
1,021
1,115

975
1,401
1,182

,

2,143
1,432
1,557

2,589
2,481
1,763

2,129
1,767
2»054

2,409
1,500
2,385

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

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

2,791
3,624
2 ,763e

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

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

10,882
16,015
21,965

11,672
18,504
24,798

6,415
9,178e

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 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.




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

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

I
I
I

!

TOTAL

GROSS PROCEEDS BY
TYPE OF ISSUE
COMMON
1
MEMO:
AND
BONDS
ISSUES INCLUDED
PRIVATELY
PFD.
PUBLICLY
MFG.
FOREIGN | CONVERTIBLE
PLACED
STOCK
OFFERED

5, 178
5, 705
5, 133
5, 951
6, 218

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

1,724
1 644
1 361
1 922
1 ,540
=

989
956
1,166
1,474
2,023

7,,369

3.,397

1 ,775

2,196

313
172
124
113
215

GROSS PROCEEDS BY
TYPE OF ISSUER
PUBLIC
UTILITY

'

OTHER
ISSUERS 1

584
758
1,037
902
1,355

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

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

422
536
490
319
473

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

1,336

1,415

1,666

421

3,832

446
475
674
443
319
627
315
404

95
156
115
162
41
186
56
231

530
472
700
741
1,044
860
1,161
972

739
377

44
197

1,409
953

550
370
450

180
300
175

1,470
1,215
725

1968 - Aug.
637
396
1,,433 1
400
49
362
211
Sept.
727
433
398
28
1,,556
221
453
Oct.
2,,129
1,,009
595
525
365
24
640
466
Nov.
1,,767
939
362
49
211
421
Dec.
607
2,,055
965
483
40
326
651
980
636
1969 - Jan.
2-,075
460
103
376
403
Feb.
2,045
842
395
808
578
74
513
835
•2.,098
755
Mar.
38
401
491
509
Apr.
2,,707
50
1,267
634
805
436
515
May
2 ,102
920
691
28
491
500
575
June e/ 2,,560
1 :,210
650
700
400
360
,360
July e/ 2 ,360
500
500
1
200
475
Aug.e/ 1 ,600
700
500
400
300
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 available.
Note: May 1969 figures are Securities and Exchange Commission estimates revised
Reserve Board.




COMMUNICATIONS

by the Federal

'1

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

ISSUER

TYPE2

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

COUPON
RATE OR
NET INTEREST COST

OFFERr
ING
YIELD

MOODY'S
RAT INC.

Corporate
Society Corporation
Long Island Lighting Co.
Weyerhaeuser Company
R. J. Reynolds Tabacco Co.
R. J. Reynolds Tabacco Co.
Saxon Industries




Conv. debs.
1st mtg.
Conv. cum.
pfd. stk.
S.F. debs.
Notes
Com. stk.

15.0
35.0

1994
1999

6

6.00
8.20

N.R.
Aa

1994
1974

7-7/8
8-1/8

7.90
8.13

Aa
Aa

8.20

25.0

100.0
50.0
15.6

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

,

1
ISSUER

TYPE 2

AMOUNT
(MILLIONS
OF
DOLLARS)

September 2 through September 8. 1969
COUPON
|
RATE OR
; OFFERMOODY'S
MATURITY NET INTER- j
II.CRATING
EST COST
YIELD

State & local Government
Oregon, State of

G.O.

47.0

1983/84/87.

6.40

337.0

(1972)

8.35

6.15-6.25/40

Other
Federal Land Bank

Bonds

8.35

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;
R e v . - U t r e v e n u e obligations secured only by income from public utilitivs;
R e v . - Q . - U t r e v e n u e bonds secured only by income from quasi-utilitivs; Rcv.-S.T.,
revenue bonds secured by revenue from specific taxes only; Rev.-Rent., revenue
bonds secured solely by lease payments.
Includes foreign government and International Bank for Reconstruction and
Development issues and non-quaranteed issues by Federal Agencies.




Aa

TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury)1
(continued)
As S e p t e m b e r

ISSUER

TYPE

AMOUNT
, (MILLIONS
OF
DOLLARS)

8)

1969

,

APPROXIMATE DATE
OF OFFERING

Corporate
*Avco Delta Corporation
Phillip Morris Inc.
Beatrice Foods Company
Southwestern Bell Tele. Co.
Z u m Industries, Inc.
^Computer Sciences Corp.
Credithrift Finance Corp.
International Bank
Tenneco Inc.
Chenietron Corporation
Ohio Edison
*Mansanto Company
Gulf States Utilities Co.
Hublein Inc.
North Indiana Public Srv.
Company
New England Pwr/ Company
Panhandle Eastern Pipeline
Company
Panhandle Eastern Pipeline
Company
U.S. Bancorporation
Baltimore Gas & Elec.
Washington Gas Light Co.
transcontinental Gas PipeLine Corp.
Consolidated Edison Co. of
New York
Cincinnati & Suburban Bell
Telephone Company
First & Merchants Corp.
Northern Per. Company
Columbia Gas System Inc.
*General Telephone Co. of
Illinois
Dayton Pwr. & Light Co.
National Health Enterprises
Inc.
Collins & AikeoaxL
Investment Properties Assoc.




30.0
100.0
35.0
150.0
18.0
50.0
20.0
30.0
50.0
40.0
40.0
150.0
25.0
50,0

September
September
September
September
September
September
September
September
September
September
September
September
September
September

8
8
9
9
9
9
10
15
15
16
16
17
18
18

1st mtg.
1st mtg.

20.0
15.0

September
September

18
22

Debs.

40.0

September

22

Pfd. stk.
Conv. debs.
Bonds
1st mtg.

20.0
25.0
25.0
20.0

September
September
September
September

22
22
23
23

Bonds

50.0

September

24

Com. stk.

55.3

September

29 (rts. exp.)

Debs.
Conv. sub. debs,
1st mtg.
Debs.

35.0
20.0
45.0
50.0

September
September
October
October

29

1st mtg.
1st mtg.

15.0
30.0

October
October

Debs.
Conv. debs.
Bonds

15.0
15.0
78.8

October
October
October

S.F. debs.
Conv. debs.
Debs.
Debs.
Conv. debs.
Conv, sub. debs.
Debs.
Conv. debs.
1st pipeline
Debs.
1st mtg.
Debs.
1st mtg.
Conv. sub. debs.

1
2
7
8

13

TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
of Sept. 8, 1969.

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

State & local Government
Newark, New Jersey
Houston, Texas
Jefferson Parish, La.
St. Louis Co., Missouri
Wayne Co., Michigan
^Washington State Bd. for
Community Ed.
Newport News, Virginia
Chicago Park District, 111.
Alaska
West Virginia, State of
Warren Consolidated Sch.
Dist., Michigan
Louisiana, State of
^Memphis, Tennessee
Los Angeles Dept. of Wtr.
. and Pwr.
Los Angeles Co. Flood
Control Dist.

V. P.
Rev. bds.
Bonds
G.O.
Bonds

20.5
24.0
10.0
13.0
20.0

September
September
September
September
September

9
10
10
11
11

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

22.0
16.0
19.5
10.2
18.3

September
September
September
September
September

11
16
16
17
18

Bonds
Bonds
Bonds

13.0
15.0
30.0

September 24
September 30
September 30

Rev.

39.0

October

8

Bonds

15.0

October

14

Bonds
Bonds

200.0
100.0

Other
HAA
Tennessee Valley Auth.

*
1

Septanber 24
October
7

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.
Postponed this week were: Jacksonville Elec. Authority, 22.0-.-no bids received
because of 6% ceiling. Hawaii, 3 0 . 0 — n o bids received. Vernitron Corporation, 15.0cancelled.




TABLE 8: Stock Prices and Volume
STOCK PRICES 1
DATE

'

S6cP„
500 3

1967 - High
Low

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

D.J. - IND.

TRADING: VOLUME 2
AMEX4

NYSE

-

AMEX

943.08(9/25) 24.52(12/29)
786.41(1/3) 13.78(1/27)

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

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

1968 - H i g h
Low

108.37(11/29) 985.21(12/3) 33.24(12/20)
87.72(3/5)
801.96(7/29) 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) 32.91(1/3)
801.96(7/29) 25.02(7/29)

72.7(5/2)
32.8(4/4)

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

824.46
820.88
837.25
836.72

26.33
26.37:
26.80
26.88

48.9
44.4
50.3
43.0

17.2
15.6
19.0
16.6

819.50

26.34

35.6

12.4

1969 - Aug. 8
15
22
29

93. 94
94.00
95.92
95.51

Sept. 5j>/ 93.64

1

2

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

Highs and lows are

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 p e r d a y 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.

3

1941-43 = 10.

4

Average dollar value of shares listed.




15

STOCK PRICES AND TRADING VOLUME
AMEX

S&P
D.J.
(Ind) - (500)
1300 130

Weekly
STOCK PRICES

1260
1220

AMEX PRICE LEVEL INDEX

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

^

AMEX TRADING VOLUME (TOTAL FOR WEEK)
40

20
0
- N Y S E TRADING VOLUME (TOTAL FOR WEEK)

80

60

40

20
0
1965

1966




1967

1968

1969

T

TABLE 9: Security Credit

END OF PERIOD

CUSTOMERS 1
NET DEBIT
BALANCES

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

N E T CREDIT
CUSTOMERS' NET EXTENDED BY
BROKERS AND
FREE CREDIT
DEALERS 3
BALANCES

Outstanding:
1968 -

July
Aug.
Sept.
Oct.
Nov.
Dec.

1969 - Jan.
Feb.
Mar.
Apr.
May
June t . r
July & '

6,500
6,460
6,390
6,250
6,200
6,200

2,420
2,490
2,520
2,560
2,630
2,710

8,920
8,950
8,910
8,810
8,830
8,900

8,861
8,489
8,724
8,859
9,029
9,970

5,930
5,750
5,590
5,570
5,670
5,340
5,190

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

8,680
8,560
8,370
8,330
8,440
8,080
7,890

10
70
30
40
70
80
40
60
-30
-20
10
-30
-40

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

-190
-40
-70
-140
-50

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

-270
-180
-160
-20
100
-330
-150

2
3

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

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

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

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

-180
30
-40
100
20
80

133
-371
235
135
170
761

-24
-285
142
281
12
298

156
-86
85
-138
158
563

-220
-120
-190
-40
110
-360
-190

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

-120
50
-351
-217
7
1
-302

-628
-9
-477
-57
423
•261
-397

~
.

-

Change in
Outstanding:

1

3,269
2,984
3,126
3,407
3,419
3,717

--

-

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

TOTAL
DEPOSITS
ANNUAL
NET
GROWTH
RATE 1
FLOW

: MUTUAL SAVINGS BANKS .
REGULAR DEPOSITS 3
NET,
. NEW
ANNUAL
MONEY
• GROWTH
NET
FLOW
RATE 1

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

2,557
5,082
4,186

, 227
2,376
1,143

3,584
10,687
7,396

3.2
9.4
5.9

-552
6,129
2,676

6,141
15,769
11,582

300
-111
64

757
1,622
-605

—»

722
158
-606

1,120
2,075
-419

227
-266
-266

641
1,359
-1,062

602
-116
-1,075

949
1,682
-1,226

NET
NEW
MONEY2

Not Seasonally Adjusted
1966
1967
1968
1968 - May
June
July
1969 - May
June j3 /
1 July £/

363
453
186
308
323
-164

4.9
9.3
7.0

—
--

--

--

——

Seasonally Adjusted
1969 - Feb.
Mar.
Apr.
May
June j>/
July j>/

1
2
3

384
382
160
357
175
-45

7.2
7.1
3.0
6.6
3.2
-0.8

--. -—
——

582
894
190
498
491
8

5.3
8.1
1.7
4.5
4.4
0.1

3.8
9.4
6.3

-325
8,505
3,819

-• —

1,022
47
-542

——

829
-282
•1,341

' 1

. ——
——
——
—

966
1,276
350
855
666
-37

5.9
7.8
2.1
5.2
4.0
-0.2

--

——

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)
Monthly

Millions of dollars

2000
1600
TOTAL

1200
800
400

400

1200
V SAVINGS & LOANS

800
400

400

800
MUTUAL SAVINGS BANKS
400

1965




1966

1967

1968

1969

\

: ' —-

'

TABLE 11: Mortgage Commitments at Selected Thrift Institutions

DATE

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

1

TOTAL

1

OUTSTANDING COMMITMENTS
I
.
NET CHANGE
ALL'
A LIMUTUAL
1
SAVINGS •
TOTAL
SAVINGS &
SAVINGS &
BANKS
LOAN
'
LOAN
(N.Y. STATE)
ASSOCIATIONS
ASSOCIATIONS
(Billions of Dollars, Seas onally Adjusted) 1/

8.8
9.0
9.1
9.5
9.7
9.7

6.1
6.1
6.2
6.4
6.5
,6.6

2.7
2.9
2.9
3.0
.3.2
3.1

.24
.16
.14
.35
.27 .
-.01

9.9
10.1
10.3
10.5
10.3
10.2
9.9

6.7
6.9
7.0
7.2
7.1
7.0
6.8

3.2
3.2
3.3
3.3
3.2
3.2

.15
.25
.17
.19
-.19
-.09

3.1

-. 28

MUTUAL
, SAVINGS
BANKS
(N.Y. STATE)

. 16
. 10
.22
. 10
.08

.08
.16
.04
.13
.17
-.10

.08
.22
.09
. 18
-.10
-.05
-.20

.07
.03
.08
.01
-.09
-.04
-.08

—

.

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.




MORTGAGE COMMITMENTS OUTSTANDING (seasonally adjusted)
Monthly

Billions of dollars

TOTAL

S&L'S

NY-MSB'S

Includes building loans beginning August 1967

1960




1962

1966

1968

1970

22

TOTAL
INCLUDING
FNMA-GNMA

TABLE 12: Net Change in Mortgage Holdings 1
(millions of dollars)
FINANCIAL INSTITUTIONS
MUTUAL
SAVINGS &
SAVINGS TOTAL COMMERCIAL
LOAN
BANKS
BANKS
ASSOC.

18,197
19,988
23,807

15,874
18.191
2

4,705
4,639
6,677

1,978
2,238
2,125
1,851
2,202
2,165
2,398
n.a.

1,732
2,003
1,905
1,699
2,011
1,980
2,176
n.a.

616
616
616
533
600
600
600
200

1969 - Jan.
2,143
Feb.
2,292
2,022
Mar.
Apr. . 2,083
May
2,031
June
2,164
July

1,988
2,109
1,826
1,877
1,810
1,873

691
708
656
525
531
439
131

DATE

LIFE
INSURANCE
COMPANIES

FNMA-GNMA

3,761
7,538
9,330

4,648
2,914
2,496

2,323
1,797
2,508

" 1 6 0
879
203
957
219
901
248
718
204
1,026
233
988
216
1,216
n.a.
870
Seasonally Adiusted

88
216
169
200
181
159
144

Not Seasonally Adiusted
1966
1967
1968
1968 - Apr.
May
June
July
1969 - Apr.
May
June
July

1/

2,760
3,118
2,796

303
269
208
253
258*
231
163

890
874
852
897
842
1,033
874

104
258
130
202
179
170

246
235
220
152
191
185
222
n.a.
155
183
196
206
221
. 271

Monthly data for commercial banks, including banks in the possessions, 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 f Institute of Life Insurance and, through August 1968, the Federal
National Mortgage Association, and thereafter by FNMA and the Government National
" ^ M o r t g a g e 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 - GNMA

2.0

FINANCIAL INSTITUTIONS

1.5

1.0

1966




1967

1968

1969

24

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

QUARTER

TOTAL

RESIDENTIAL 2

1- to 4' FAMILY

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

1966 - I
II
III
IV

28.3
24.2
18.4
15.6

19.0
15.6
10.8
'9.5

15.5
1967 - I p
20.4
up
III > 26.3
....IVp 28.6

1968 - I P

FARM

8.0
8.1
8.4
7.9

2.2
2.1
2.2
2.4

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

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

2.8

3.1
3.5
4.5

6.2
5.7
6.4
'8.1

9.4
8.7
10.2
11.8

3.2
3.2

7.1
5.9

10.6
9.0

18.2
17.9

ivp

17.7
21.5

15.4
14.8
14.1
17.0

1969 - Ip
IIP

30.2
27.1

21.1
19.3

18.0
16.1

2

. MULTI-AND
COMMERCIAL

4.2
4.5
4.4
4.6

26.9
25.8
25.8
31.3

1

COMMERCIAL

3.5
3.5
3.8
3.8

IIP
m i

• .

MULTIFAMILY

1

,

2.4

2.3
1.8
1.7
2.0
1.9

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

RESIDENTIAL

I 1-4 FAMILY

COMMERCIAL

X,

MULTIFAMILY
1965




1967

1969

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

WEEK
ENDED
July

7
14
22
28

IMPLICIT YIELD 2 (per cent)
COMMITMENTS IN $ MILLIONS
ACCEPTED
1-YEARN
901-YEAR 1
6906TOTAL
TOTAL
DAY
& OVER
M0NTH & OVER
MONTH
OFFERED
DAY
195.5
177.1
250.9
298.2

121. 0
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
8.39
8.25

8.47
8.40
8.31
8.26

8.31
8.29
8.19
8.15

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

150. 5
22.9
(150.0) 2/

94.8

32.9

8.33

8.34

)
Aug.

4
11
18
25

Sept. 2 : 252.5
8j>/

X

8.21

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
2

For "proposed construction" of new homes only.
Average secondary market yield after allowance for commitment fee and
required purchase and holding of FNMA stock, assuming prepayment of
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.

FNMA WEEKLY "AUCTION" RESULTS
120

AMOUNT OF ACCEPTED BIDS BY COMMITMENT PERIOD

80
1 YEAR
AND OVER

—

/

MONTHS

20

3 MONTHS

Per cent
8.6

"IMPLICIT YIELD
6-MONTH COMMITMENTS

8.0

-

7.4

1

1

1

1

I

I

1

I

I

1

1

I

I

I

1

1

1

1

6.8
$ Millions

i

-

A

-

400
-

/\

300

200

100

1
JUNE

1

1
AUG.

1
'

1
OCT.

1968




1

1
DEC.

_ / T O T A L BIDS
ACCEPTED
1
I
I
1
FEB.

APR.

1 . 1
JUNE

1969

1
AUG.

1

T

1
OCT.

1
DEC.

0

. ABLE 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

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

1,878 1,066
1969 - Jan.
Feb.
1,686
975
Mar.
1,584
828
Apr.
1,563
797
883
May
1,509
801
June £ a , 464
739
July 2 '1,336

812
711
756
766
626
663
597

101.5
90.0
131.9
159.0
155.5
146.4
122.0

14.2
13.2
18.9
23.0
21.1
21.5
21.4

3.8
3.5
3.9
4.4
4.3
4.6
4.7

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

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

]

BUILDING PERMITS
(SEASONALLY
ADJUSTED '
ANNUAL
RATE) 2

116.2
110.9
111.1
114.0
105.4
75.7

1,289
1,290
1,393
1,378
1,425
1,463

83.5

1,403
1,477
1,421
1,502
1,323
1,340
1,206

73.3
109.1
131.6
130.1
120.3
95.9

Total starts are Census estimates including farm for both permit-issuing and
non-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 leases 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 in" elude, 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 per— ^ m i t s 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

HOUSING STARTS

1.6

1.2

BUILDING PERMITS
(in issuing areas)

PER CENT OF UNADJUSTED TOTAL STARTS

MULTI-FAMILY
(2 or more)

GOVERNMENT UNDERWRITTEN
1963




1965

1967

1969

TABLE 16: Mortgage and Bond Yields
FHA
MORTGAGES

2

DATE
25-YEAR 30-YEAR

CONVENTIONAL
MORTGAGES

3
1957 - High
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

1968 - D e c .
1969 - Jan.
Feb.
Mar.
Apr.
Hay
June
July

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

7.50

7.40
.7.55
7.60
7.65
7.75
7.75
8.00
8.10

, n. a.
n.a.
n.a.

1

——

7.99
8.05
8.06
8.06
8.35
8.36

SPREAD BETWEEN YIELDS
ON CONV, &

FHA MORT-

NEW
Aaa COR. BORATE
BONDS

4

GAGES
.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

-.10
——

-.39
-.40
-.31
-.31
-.35
-.26

1

.

6.79
6.92
6.91
7.37
7.17
7.22
7.58
7.63

SPREAD BETWEENYIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES
1.58
.88
1.69
.77
1.16
1.28
.27
1.20
.26
.71
1.08
.68
.89
.84
.77
.73

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 mortgagee 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' conventional first mortgages prevailing in the market areas of insuring office
cities. Beginning with April 1960, rate relates only to new-home mortgages; e
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.




31

MORTGAGE AND BOND YIELDS

Monthly

HOME MORTGAGES:
CONVENTIONAL

Aaa CORPORATE BONDS:
V NEW ISSUES

J_=

L

11111111111111111111111111
11 I I M I I I I!

YIELD SPREAD (FHA MORTGAGE VS. NEW ISSUE Aaa CORPORATE BONDS)

Basis points

200

-

111111n11iiIii111111111
1962




1964

1966

1968

1970

100

0

32
T

DATE

<\BLE 17: Conventional Mortgage Terms

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

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

1

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

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

7.04
7.10
7.10
7.09
7.07
7.09

0.85
7.17
0.87
7.24
0.87
7.24
0.88
7.23
0.84
7.21
0.89 • 7.23

25.5
25.5
25.5
25.6
25.4
25.9

73.7
73.6
74.2
74.5
74.1
74.0

22.2
22.6
22.1
22.7
22.5
24.7

7.10
7.12
7.11
7.09
7.07
7.09

0.83
0.35
0.82
0.84
0.82
0.85

7.23
7.26
7.25
7.22
7.21
7.23

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

72.6
73.0
72.6
72.4
72.9
73.2

18.5
18.6
18.3
18.3
18.9
20.4

0.84
0.81
0.93
0-96
0.88
0.84
0.91

25.6
25.6
25.8
25.4
25.8
25.6
25.5

73.6
73.3
73.8
72.6
73.2
73.0
71.9

24.1
23.5
24.0
24.8
25.0
24.9
24.5

7.18
7.28
7.35
7.46
7.54
7.64
7.79

0.86
0.86
0.84
0.85
0.83
0.8.6
0.91

7.32
7.42
7.49
7.60
7.6b
7.79
7.95

22.8 72.6
22. 9 72.8
23. 0 72.7
23. 0
71.8
22.7 i'71.9
22..8 71. 4
22 .9 71.7

20.0
19.6
20.2
19.9
19 7
20.1
20.2

1969
7.16
7.26
7.32
J7.47
,7.50
7.62
July & 7.75

Jan.
Feb.
Mar.
Apr.
May

1

7.30
7.39
7.47
7.62
7.65
7.76
7.90

Compiled by Federal Home Loan Banlc^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 .clo8ing"~costs related solely to
~~\Jtransfer of property ownership.
2

3

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




CONVENTIONAL MORTGAGE TERMS
Monthly

Years

MATURITY
NEW

EXISTING

LOAN/PRICE RATIO

NEW

EXISTING

1963




1965

1967

1969
* CHANGE IN SERIES