Signal More than a third of US equity liabilities are owed abroad

Summary

MGI stresses that the influence of US equity markets reaches well beyond American households. Foreign entities hold more than one-third of US equity liabilities. Cross-border investment positions consist to a large extent of equity, and the United States on net owes more equity to the rest of the world, while many other countries on net own more equity issued abroad. This pattern suggests that a large part of cross-border equity liabilities originates in the United States. The report adds that as US stocks outperformed other markets, the US net international position became more negative while foreign holders of US equity saw their positions grow.