Cover IMF Working Papers
A Global View of the U.S. Investment Position
Author: Mr. Andrew J Swiston
Series:
IMF Working Papers
Volume/Issue:
Volume 2005: Issue 181
Language:
English
Publication Date:
01 Sep 2005
DOI:
https://doi.org/10.5089/9781451862003.001
ISBN:
9781451862003
ISSN:
1018-5941
Pages:
24
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
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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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.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund