Summary
Per the latest flow-of-funds data from the Federal Reserve, total US financial assets held by foreign investors rose to an immense $9.723 trillion as of 3/31/05. Net foreign financial claims against the United States stood at $5.089 trillion.
_____
Last Thursday, the Federal Reserve released its latest flow-of-funds data, current through 3/31/05. I am passing along tables containing the important foreign numbers with little comment, to get them into circulation as quickly as possible. A discussion of these data will follow soon.
* As of 3/31, total US financial assets held by foreign investors rose to a $9.723 trillion. Net foreign financial claims against the United States stood at $5.089 trillion.
* As of 3/31. foreign investors held almost $1.950 trillion of US Treasury debt. In turn, this was equal to approximately 43% of all the Treasury's debt held by public investors.
NOTE: During this week, the Treasury will release new data regarding foreign holds of its securities. Therefore, the figures currently shown in Table 3 below will undergo material revision. The new figures will be published when they become available.
________
Table 1.
------------------------------------------
FOREIGNERS' U.S. FINANCIAL
ASSETS/LIABILITIES
(Billions of Dollars, Latest Data
Released 06/09/05 Through 03/31/05)
------------------------------------------
Total Total
Financial Financial
Assets Liabilities Difference
------------------------------------------
2005
03/31 9722.9 4634.4 5088.5
------------------------------------------
As of
12/31
-----
2004 9326.0 4263.5 5062.5
2003 8193.7 4064.5 4129.2
2002 7441.1 3981.8 3459.3
2001 6965.8 3650.1 3315.7
2000 6584.9 3490.2 3094.7
=======================================
1990 1998.4 1388.8 609.6
---------------------------------------
1985 967.4 869.7 +97.7
1984 805.3 841.6 -36.3
---------------------------------------
1980 494.2 666.4 -172.2
1970 104.8 140.5 -35.7
1960 38.9 63.5 -24.6
1950 17.4 31.4 -14.0
=======================================
1945 16.3 14.9 1.4
------------------------------------------
Source: "Flow of Funds Accounts
of the United States" (Federal
Reserve "Z.1" release).
------------------------------------------
Table 2.
-----------------------------------------------
FOREIGN HOLDINGS OF US FINANCIAL ASSETS
AS OF 03/31/05 (Billions of Dollars
-- Latest Data Released 06/09/05)
-----------------------------------------------
% of
Total
Total US Financial Assets -----
Held by Foreign Investors 9722.9 100.0
===============================================
Credit-Market Instruments# 4729.3 48.6
------ ----
Open Market Paper 118.4
US Govt. Securities 2775.4
Treasury 1949.6
Agency 825.8
US Corporate Bonds 1835.5
-----------------------------------------------
US Corporate Equities 1938.4 19.9
------ ----
Credit-Market Instr.
+ Corp. Equities 6667.7 68.5
====== ====
-----------------------------------------------
Detail of US Government Securities
-----------------------------------------------
Treasury 1949.6
Official 1233.2
Private 716.4
Agency 825.8
Official 225.5
Private 600.3
------
2775.4
======
-----------------------------------------------
Source: "Flow of Funds Accounts of the United
States" (Federal Reserve "Z.1" release.) #For
the purpose of this analysis, the category
"Loans to US Corporate Business" has been ex-
cluded. As of 03/31/05, this category had tot-
al outstandings of $148.3 billion.
-----------------------------------------------
Table 3.
----------------------------------------
15 LARGEST FOREIGN HOLDERS OF U.S.
TREASURY DEBT AS OF 03/31/05, VS. THE
SAME COUNTRIES' HOLDINGS AS OF 12/31/04
(Amounts in Billions of $s)*
----------------------------------------
03/31 12/31
Country 2005 2004
----------------------------------------
( 1) Japan 679.5 689.4
( 2) Mainland China 223.5 222.9
( 3) Caribbean Bank-
ing Centers@ 137.2 71.4
( 4) United Kingdom 122.9 101.0
( 5) Taiwan 71.1 67.9
( 6) OPEC 62.2 62.1
( 7) Korea 57.1 55.0
( 8) Germany 56.0 50.2
( 9) Hong Kong 45.2 45.1
(10) Switzerland 44.1 42.1
(11) Luxembourg 42.1 41.6
(12) Canada 38.4 33.3
(13) Mexico 32.5 32.8
(14) Singapore 30.7 30.3
(15) France 25.1 20.0
----------------------------------------
Total 1667.6 1565.1
----------------------------------------
*Estimated end-of-period foreign
holdings of US Treasury marketable
and nonmarketable bills, bonds and
notes based on Treasury Foreign
Portfolio Investment Survey bench-
marks and on monthly data reported
under the Treasury International
Capital (TIC) reporting system.
Totals comprise both official and
private holdings. Data subject to
revision. @Includes Bahamas, Ber-
muda, Cayman Islands, Netherlands
Antilles, and Panama.
----------------------------------------
Table 4.
--------------------------------------------------------
NET ACQUISITION OF U.S. FINANCIAL ASSETS
BY FOREIGN INVESTORS -- 2000 TO 03/31/05*
(Billions of Dollar)
--------------------------------------------------------
Years Ended December 31
------------------------------ 03/31
2000 2001 2002 2003 2004 2005*
----- ----- ----- ----- ------ ------
Net Acquisition
of Finan. Assets 963.0 657.7 741.7 783.0 1255.3 1169.9
================= ===== ===== ===== ===== ====== ======
Credit-Market
Instruments
----------------
Open-Mkt. Paper 4.3 -2.6 10.3 9.9 18.1 -29.6
Treasury Sec. -70.5 10.5 138.9 285.1 357.2 372.6
Agency Sec. 141.9 103.7 112.5 11.5 129.6 117.8
Corp. Bonds 168.4 195.4 151.0 232.6 265.5 281.6
----- ----- ----- ----- ------ ------
Subtotal 244.1 307.0 412.7 539.1 770.4 742.4
----- ----- ----- ----- ------ ------
Corp. Equities 193.6 121.5 54.2 36.9 57.6 119.0
----- ----- ----- ----- ------ ------
Total 437.7 428.5 466.9 576.0 828.0 861.4
===== ===== ===== ===== ====== ======
Above/Net Acquis. 45.5% 65.2% 62.9% 73.6% 66.0% 73.6%
----- ----- ----- ----- ------ ------
MEMO ITEM@
----------------
Loans to Corp-
orate Business -2.2 -1.6 10.1 -0.8 6.3 106.1
--------------------------------------------------------
DISTRIBUTION OF TREASURY/AGENCY ACQUISITIONS
--------------------------------------------------------
Treasury Securities
--------------------------------------------------------
Official -5.2 33.7 60.4 169.7 261.5 59.8
Private -65.3 -23.2 78.5 115.4 95.7 312.8
---- ---- ----- ----- ----- -----
Total -70.5 10.5 138.9 285.1 357.2 372.6
--------------------------------------------------------
Agency Securities
--------------------------------------------------------
Official 40.9 20.9 28.6 24.9 26.0 44.6
Private 101.0 82.8 83.9 -13.4 103.6 73.2
----- ----- ----- ---- ----- -----
Total 141.9 103.7 112.5 11.5 129.6 117.8
--------------------------------------------------------
*Source: "Flow of Funds Accounts of the United
States" (Federal Reserve "Z.1" release). 1Q05
figures are at seasonally adjusted annual rates.
@Although "Loans to Corporate Business" are
classified by the Federal Reserve as "Capital
Market Instruments," they have been excluded for
the purpose of this examination, since they lack
the liquidity of the other categories.
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