Conservative Economics

Advertisement

Recent Tweets

Follow capflowwatch on Twitter
Page 2 of 212
Category: Foreign Investors

This category includes articles about the flow of investment from one country to another, either as portfolio investment, short-term instruments, or direct long-term investment.

Q1 2006

Foreigners reduce support for US Treasuries

Demand for Bonds: US Market: Q1 2006

Although foreign investors continue to be the largest purchasers of most types of US bonds, this sector showed less interest in treasuries than in the past, shifting assets into short-term repurchase agreements in Q1 2006. If the Federal Reserve continues to push short-term interest rates upwards and if foreign investors continue to move into short-term fixed investments, such as repurchase agreements, long-term interest rates may be forced higher.

Q1 2006

Trade deficit continues to support bonds

Foreign Purchases of US Fixed Income Securities

In Q1 2006, the excess of US imports over exports continued to provide dollars to the rest of the world, which were invested in the US bond market.

Although foreign central banks reduced flows into US treasuries and agencies after the high point of 2004, the shortfall has been more than covered by flows into bonds from foreign private sources. The driving force behind foreign purchases of US bonds is not so much related to interest rates as to worldwide neo-mercantilist impulses to favor exporters.

US Trade Deficit 2005

Foreign investors help stabilize US markets

Connectivity in capital flows

Foreign funds created by the record US trade deficit of $726.9 billion in 2005 were channeled mainly into the US bond market. This went a long way towards keeping bond prices up, despite massive net corporate bond issues connected with asset-backed securities (mostly mortgage related) that also set impressive records: $462.9 billion.

Foreign investors purchased (net) $214.1 billion in US Treasury securities and $351.1 billion in corporate bonds.

Page 2 of 212

Featured articles on inside pages

Stock buybacks

The Stock Buyback Era evaluated

The buyback era began when the SEC allowed issuers to manipulate prices to give value to executive options. Stock buybacks since 1982, in 2008 dollars, total $5.77 trillion. More ...

Securities Analysis

Truth, Fact, Opinion

In security analysis, it is important to get the facts, before forming an opinion. Effective collaborative research calls for rigorous separation of the fact-gathering from the decision-making stages of the process. More ...

US Politics

America grows with legal immigration

Legal immigration has resulted in solid growth of the US population, despite declining birth rates and an increasing number of old people. This is good news for investors in stocks and real estate. Illegal immigration appears to be less than 5% of legal immigration, and legal immigration is at an all time high.
More ...

US equities

GAO pooh-poohs a Boomer bust

In 2006, the GAO issued a report saying that the retirement of the Baby Boomers should not have a negative effect on stock prices. This article reviews the GAO reasoning and concludes that the conclusion is not credible. More ...

US Bonds

The collapse of the dollar and US bonds?

The extreme spending of the Obama government, combined with irresponsible bank lending policies promoted by Barney Frank and Chris Dodd, portend rising interest rates, the collapse of the bond market, and the end of dollar supremacy. More ...

World Economy

Working off the US trade deficit

Foreigners hold $16.8 trillion in US financial assets as a result of selling more goods to Americans than they buy from them. Since the 'deficit' is in dollars, the US has no problem in 'paying it off'. More ...

Custom Search

Subscribe / Follow

Subscribe via RSS Subscribe via Email

Site navigation

Capital Flow Watch has hundreds of articles on economics and investments.

Articles have excerpts on the front pages, and on tag, category, search and archive pages.


Review capital-flow-watch.net on alexa.com

» Blog Guide

Excerpts by Category

Article Calendar

December 2010
MTWTFSS
« Sep  
 12345
6789101112
13141516171819
20212223242526
2728293031 

Stock Quotes

DJIA11470.00  chart +0.52%
NASDAQ2640.64  chart +0.12%
S&P 5001246.42  chart +0.49%

Ftse 1005860.75  chart +0.82%
Dax7029.39  chart +0.33%
Cac 403892.44  chart +0.91%

Nikkei 22510293.89  chart +0.80%
Hang Seng Index23317.61  chart +0.67%
Straits Times Ind3182.32  chart -0.10%

Eur To Usd1.34  chartN/A
Usd To Jpy83.28  chartN/A
Gbp To Usd1.59  chartN/A

2010-12-13 14:11