Introduces the U.S. data on transactions in, and holdings of, cross-border derivatives, which have been collected through the Treasury International Capital (TIC) reporting system since March 2005. The article discusses the ways in which the data will improve U.S. external-sector reports,...

Were the U.S. to persistently earn substantially more on its foreign investments ("U.S. claims") than foreigners earn on their U.S. investments ("U.S. liabilities"), the likelihood that the current environment of sizeable global imbalances will evolve in a benign manner increases. However, we...