A Global View of the U.S. Investment Position

September 1, 2005

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Format: Chicago

Andrew J Swiston. A Global View of the U.S. Investment Position, (USA: International Monetary Fund, 2005) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

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.

Subject: External position, Financial institutions, Financial instruments, Foreign assets, International investment position, Securities, Stocks

Keywords: Asset portfolio, Debt securities position, Foreign assets, Foreign investment, Global, Home bias, International investment position, Investment portfolio, Market, Portfolio, Portfolio internationalization, Portfolio perspective, Portfolio share, Securities, Securities position, Stocks, Valuation change, WP

Publication Details

Pages:

24
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2005/181
Stock No:

WPIEA2005181
ISBN:

9781451862003
ISSN:

1018-5941

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