A Global View of the U.S. Investment Position

Andrew Swiston

No 2005/181, IMF Working Papers from International Monetary Fund

Abstract: This paper analyzes various indicators of the U.S. international investment position from a portfolio perspective. The 1990s saw a decline in home bias, which, coupled with rapid financial deepening, led to a large increase in gross international investment holdings. The home bias of non-U.S. investors declined more rapidly than that of U.S. investors, allowing the United States to finance a rising stock of net liabilities, even as foreign portfolios remained marketweight or underweight U.S. assets in each investment category. However, a comparison to other countries reveals that the U.S. net international investment position (NIIP) is large given the size of the economy and is deteriorating, especially through a growing negative net debt securities position.

Keywords: WP; market; portfolio; securities position; International investment position; Home bias; Foreign investment; debt securities position; portfolio internationalization; investment portfolio; portfolio share; asset portfolio; valuation change; portfolio perspective; Foreign assets; Securities; Stocks; Global (search for similar items in EconPapers)
Pages: 24
Date: 2005-09-01
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Citations: View citations in EconPapers (2)

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