from Follow the Money

Someone bought a lot of US corporate debt in June

August 15, 2005

Blog Post
Blog posts represent the views of CFR fellows and staff and not those of CFR, which takes no institutional positions.

More on:

United States

Budget, Debt, and Deficits

Trade

That at least is obvious from the TIC data

Moreover, the surge in buying did not come from Japan.  China's purchases of corporate debt were up in June, but not by anywhere near enough.   Most of the surge in demand came from investors in Europe, and specifically from investors in the UK -- which doesn't settle anything.   Since the UK runs a current account deficit, in aggregate, the "City" is not investing UK savings in the US corporate debt market. 

More later.

More on:

United States

Budget, Debt, and Deficits

Trade

Close