Over 70 academic papers attempt to explain why foreigners invest in US securities. All ignore the vital role of the US … particular foreign investors under-invest in US securities because of a lack of relational capital with US broker-dealers. We … securities. We also estimate "pent-up" demand for US securities in developing countries -- like China, Argentina, Turkey and …

from security-level data on U.S. portfolio holdings of foreign securities, we show that since the crisis, it is mostly the … debt securities. We also find a strong negative correlation between the foreign share of the U.S. financial bond portfolio …-issued structured securities with high-grade U.S. dollar-denominated financial debt issued from a small group of OECD countries (most …

foreign goods. Second, an increase in the foreign demand for U.S. assets. Both forces have contributed to steadily increasing … determination based on imperfect substitutability in both goods and asset markets, and to use it to interpret the past and explore …