Frequently Asked Questions
Regarding
the TIC System and TIC Data
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A. General questions on the TIC system
1. What is the TIC system and how do I use it?
The Treasury International Capital (TIC) reporting system collects data for the United States on cross-border portfolio investment flows and positions between U.S. residents (including U.S.-based branches of firms headquartered in other countries) and foreign residents (including offshore branches of U.S. firms).
This system provides:
- monthly data on transactions in long-term securities;
- monthly and quarterly position data on claims and liabilities (including some short-term securities) reported by banks and broker/dealers of securities;
- quarterly position data on selected claims and liabilities reported by non-banks and non-broker/dealers;
- annual position data on holdings of long-term and short-term securities; and
- quarterly position and transactions data on financial derivatives.
Please see the webpage "Using the TIC system"
at: www.treas.gov/tic/using-tic.html
. It has descriptions of the individual data series, as well
as some data retrieval methods.
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2. How are the various TIC data series on securities related?
The monthly aggregate transactions data and the detailed
annual surveys form a complementary system for analysis of
cross-border activity in long-term securities (that is, securities
with an original maturity of over one year). The annual surveys
collect security-by-security information on positions and
are thus considered to be highly accurate, but they cannot
be produced in a time frame useful for analysis of current
activity. The monthly data provide more timely but less detailed
data on cross-border transactions in long-term securities.
It is possible to combine these two data sources to make estimates
of monthly holdings of securities (for example, as in website
table on Major Foreign Holders of U.S. Treasury Securities),
but users should be aware of the difficulties, particularly
in regard to country attribution, associated with this methodology
(see FAQ number 7 below). Additional information regarding
the TIC system, analysis using the TIC data, and discussion
of the methodology for constructing between-survey positions
is available in the following recent Federal Reserve Bulletin
articles at: www.treas.gov/tic/articles.html
Foreign holdings of U.S. short-term securities and U.S. holdings of foreign short-term securities are also collected both security-by-security in the annual surveys and in aggregate form in monthly and quarterly reports of liabilities to and claims on foreigners filed by banks and brokers and dealers. Foreign holdings of most types of dollar-denominated short-term U.S. securities are aggregated with other liabilities in the monthly website data on "U.S. Banking Liabilities to Foreigners", but these data do provide country detail on foreign holdings of short-term U.S. Treasury securities. Data on U.S. holdings of short-term foreign securities including securities held for banks' domestic customers are included with other claims in the monthly data on "U.S. Banking Claims on Foreigners." Additional detail on cross-border holdings of short-term securities is available quarterly in the Treasury Bulletin.
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3. The TIC data cover cross-border transactions. What kinds of transactions are considered "cross-border"?
The TIC data collection system is specifically designed to capture U.S.-cross border financial transactions for balance of payments purposes. That is, it is designed to capture only financial transactions that involve both a U.S. resident and a foreign resident. Note that a U.S. resident includes any individual, corporation, or organization located in the United States including branches, subsidiaries, and affiliates of foreign entities located in the United States . In addition, any corporation incorporated in the United States is considered a U.S. resident even if it has no physical presence. Thus, a U.S. branch of a Japanese bank is considered a U.S. resident, and a London branch of a U.S. bank is considered a foreign resident.
The cross-border definition means that TIC data on foreign purchases of U.S. securities include only those transactions that involve both a U.S. seller and a foreign purchaser. Thus, these data exclude any U.S.-to-U.S. transactions, including, for example, transactions where the seller is a U.S. securities broker and the purchaser is a U.S.-based branch of a Japanese securities firm. They also exclude foreign-to-foreign transactions in securities, for example if a Japanese-resident securities broker purchases U.S. Treasuries from a London-based securities broker. Because many U.S. securities, including U.S. Treasury securities, trade in foreign financial markets , the TIC data will not capture all foreign transactions in U.S. securities.
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4. Are there cross-border transactions and holdings that the TIC system does not capture?
Yes. The TIC reporting system captures cross-border activity from a defined panel of custodians, banks and other depository institutions, securities brokers and dealers, end-investors, security issuers, and nonfinancial institutions. In all cases, there are minimum levels of cross-border activity that must be reached before reporting is required. For example, monthly TIC Form S reporters must have cross-border transactions of at least $50 million. Transactions by or holdings of individuals or institutions that fall below the mandatory reporting levels will not be captured. Additionally, some cross-border activity may meet reporting requirements but be missed in the TIC data, either because the institutions involved have not yet been identified and included in the reporting panel or because of improper reporting by identified panel members. For cross-border securities activity, the complimentary system of monthly transactions reports and periodic surveys can help identify potential gaps in coverage, because the surveys can account for holdings of securities that are entrusted to major custodians regardless of how those securities were acquired.
As noted below in FAQs numbers 13 and 19, the TIC system also cannot capture important cross-border flows resulting from stock swaps and from the periodic payments associated with holdings of asset-backed securities. Use of the monthly securities transactions data without considering these omissions can lead to an underestimate of cross-border equity flows on the one hand, and an overestimate of foreign purchases of long-term debt securities on the other hand.
In addition, the TIC system measures only cross-border portfolio flows and positions, thus all cross-border direct investment activity is excluded from these data. Direct investment is defined as the ownership or control, directly or indirectly, by one person or by an affiliated group, of 10 percent or more of the voting stock of an incorporated business enterprise, or an equivalent interest in an unincorporated enterprise. Direct investment positions and flows are collected by the U.S. Department of Commerce. The TIC data also exclude cross-border capital transactions of the U.S. Government; these transactions are also published by the Department of Commerce in its regular reports on the U.S. balance of payments.
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5. How are TIC data used by BEA and the
Federal Reserve? Where else are TIC data reported or used?
Besides being reported on the TIC website, detailed data
from the monthly and quarterly TIC forms are combined and
presented in several tables in the Capital Movements section
of the quarterly Treasury Bulletin, available at:
http://fms.treas.gov/bulletin/index.html
TIC data, including the data from the periodic surveys of
holdings of securities, are also a primary input to the Bureau of Economic
Analysis' International Transactions Accounts and for
the International Investment Position of the United States.
Links to the BEA's international transactions data
releases and to a description of how BEA aligns and augments
data from the TIC system for inclusion in the International
Transactions Accounts are available under the Bureau of Economic
Analysis section of the TIC website's "Articles
of Interest" at: www.treas.gov/tic/articles.html
The TIC monthly and quarterly data are also published in
several tables on International Statistics in the Statistical
Supplement to the Federal Reserve Bulletin. The Statistical
Supplement is available at:
www.federalreserve.gov/pubs/supplement/default.htm
The TIC data are indirectly the basis of the Federal Reserve Board's Flow of Funds
accounts for financial positions and flows of the Rest of the World sector. The Flow of Funds
accounts use as their primary input the data as published by BEA in its international transactions
accounts, which as noted above are based on the TIC data. The Flow of Funds Accounts are available
from the Federal Reserve Board of Governors' website at this link:
www.federalreserve.gov/releases/Z1/
TIC data are also used to compute the U.S. Gross External
Debt position, which is published as part of the International
Monetary Fund's Special Data Dissemination Standard (SDDS).
At present, 64 countries provide data on their gross external
debt position as part of the SDDS. The U.S. Gross External
Debt data are available on the TIC webpage at: www.treas.gov/tic/external-debt.html.
The data published by each country are available from the
IMF's SDDS webpage:
External Debt (EXD) data for SDDS Subscribers. The data
in spreadsheet format, including cross-country comparisions,
are available from the webpage:
World Bank Quarterly External Debt Statistics.
The surveys of U.S. holdings of foreign securities are also the basis of the U.S.
contribution to the International Monetary Fund's Coordinated Portfolio Investment Surveys,
available on the IMF's CPIS website at this link:
www.imf.org/external/np/sta/pi/cpis.htm
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6. Where can I find comparable data for other countries?
As noted in FAQ number 5, the TIC surveys of U.S. holdings
of foreign securities are the basis of the U.S. contributions
to the International Monetary Fund's annual Coordinated Portfolio
Investment Surveys. Since 2001, many countries have participated
in the Coordinated Portfolio Investment Surveys: as of 2005, 73
countries are participants. The IMF consolidates the
data from these surveys and posts the results, along with
analytical tables, on the IMF's CPIS website, available at:
www.imf.org/external/np/sta/pi/cpis.htm
In addition, the IMF's Special Data Dissemination Standard
(SDDS) website provides links to other participating country's
External Debt calculations and estimates of their International
Investment Position. The
SDDS website is available at:
http://dsbb.imf.org/Applications/web/sddshome/
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B. Questions on country classification in TIC data:
7. What are the problems of geographic attribution for securities holdings and transactions in the TIC system?
The country attribution of foreign holdings of U.S. securities as reported in the position surveys is imperfect because some foreign owners entrust the safekeeping of their securities to institutions that are neither in the United States nor in the owner's country of residence. For example, a German investor may buy a U.S. security and place it in the custody of a Swiss bank. In the surveys of foreign holdings of U.S. securities, such a holding typically is recorded vis-à-vis Switzerland rather than Germany. This "custodial bias" contributes to the large recorded foreign holdings of U.S. securities in major financial centers, such as Belgium, the Caribbean banking centers, Luxembourg, Switzerland, and the United Kingdom.
In addition, the country allocation in the data on transactions in long-term securities as reported on TIC Form S is also imperfect because transactions are recorded against the country of the foreign transactor dealing directly with the TIC Form S reporter. For example, when a U.S. resident purchases Japanese securities and the transaction is made using a financial intermediary in London, the purchase of foreign securities would be recorded against the United Kingdom, not Japan. If an Italian resident purchases U.S. securities using a financial intermediary in Switzerland, the sale of U.S. securities would be recorded vis-à-vis Switzerland, not Italy. Because cross-border securities transactions take place disproportionately in major international financial centers such as the United Kingdom and the Caribbean banking centers, large net transactions in those areas do not necessarily reflect acquisitions or sales by investors in those areas.
This "transactions bias" can further distort the country allocation of foreign holdings of securities when estimates of holdings are made for months not covered by the periodic surveys. These estimates are typically made by adding net transactions recorded against a given country to the most recently reported survey position for that country. (To get more reliable estimates, valuation changes should also be applied, especially for some types of securities such as stocks.) For some countries, the transactions bias will lead to an under-estimate of holdings, as some of the net purchases of U.S. securities recorded against international financial centers reflect net purchases of residents of other countries. For other countries, the transactions bias will lead to an overestimate of holdings by residents of those countries.
A useful example that illustrates both custodial and transactions
bias is to consider estimated securities holdings by residents
of the United Kingdom. The June 2006 survey measure of U.S.
Treasury securities held by residents of the United Kingdom
is $55.5 billion. This relatively high level of U.K. holdings
primarily reflects the custodial bias of the United Kingdom:
at $55.5 billion, the United Kingdom was the fourth largest
recorded foreign holder of U.S. Treasuries. The estimate derived
from the previous survey as of June 2005, adjusted
forward by adding U.K. net purchases over the 12-month period
until June 2006, is $200.9 billion. The difference between
the 2006 survey measure and the estimate based on the 2005
survey measure primarily reflects the additional transactions
bias of the United Kingdom as a major international financial
center.
Custodial bias is not a problem for measured U.S. holdings of foreign securities
in the periodic asset surveys, because the security-by-security construction of those
estimates allows for accurate attribution of the country of issuance of the foreign
securities. However, constructed estimates of U.S. holdings of foreign securities
between surveys will be affected by transactions bias, as U.S. purchases of foreign
securities also take place disproportionately in major international financial centers.
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8. Can I get a time series of securities holdings by country?
As noted in FAQ number 2, the most reliable estimates of holdings
are those derived from the periodic surveys of holdings. The
full reports from the most recent surveys include tables that
give a historical perspective of these holdings by country
as reported in each of the previous surveys. In the report
for the June 2006 survey of foreign holdings of U.S. securities,
tables 21-23 list foreign holdings of total long-term securities,
equities, and long-term debt securities, by country, from
the 1989, 1994, 2000, 2002, 2003, 2004, 2005, and 2006 surveys.
Earlier survey reports additionally include results from the 1974, 1978, and 1984 surveys.
In the report for the December 2005 survey of U.S. portfolio holdings
of foreign securities, tables 18 and 19 list holdings by country
from the earlier surveys for 1994, 1997, 2001, 2003, and 2004.
The TIC website additionally provides historical data of
holdings by country and by type of security in spreadsheet
form. Data on foreign holdings of U.S. securities beginning
with the 1974 survey are available at: www.treas.gov/tic/shlhistdat.html.
Data on U.S. holdings of foreign securities beginning with
the 1994 survey are available at: www.treas.gov/tic/shchistdat.html.
The TIC website provides more up-to-date estimates of foreign
holdings of U.S. Treasury securities by combining transactions
data on foreign net purchases of U.S. Treasury securities
to recent survey data on positions. These data are available in the
Major Foreign Holders tables at:
www.treas.gov/tic/mfh.txt
A link from the TIC homepage is also available for a time series of these data dating
back to March 2000. Users of the Major Foreign Holders Tables are advised to read the
accompanying Methodology to understand how these estimates are derived:
www.treas.gov/tic/method-mfh.html
Users wishing to construct additional estimates for periods between survey
dates or for more recent periods, by combining net transactions
with reported survey positions, are advised to read the 2006
Federal Reserve Bulletin article "Understanding U.S. Cross-Border
Securities Data" and the 2001 Federal Reserve Bulletin article
"The U.S. System for Measuring Cross-Border Investment in
Securities", available on the TIC website under Articles of
Interest at www.treas.gov/tic/articles.html,
Users are also advised to note the problems of
country attribution that such a methodology can generate (see
FAQ number 7).
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9. Where can I find data on OPEC countries or oil-exporters on the TIC website?
- Data for the individual Asian (middle-east) and
African OPEC countries are not available.
- Data for Asian (middle-east) and African OPEC countries are available in aggregate in the monthly data
on the TIC website, in the quarterly data in the Treasury Bulletin, and in the annual survey reports.
- In the bank-reported positions data, data for Asian (middle-east) OPEC countries and for African OPEC
countries are available under country codes 46612 and 57215, respectively, for dates after January 2003.
For dates up through January 2003, data for Asian (middle-east) OPEC countries and for African OPEC countries are
combined with residual “Other Asia” countries under country code 48909 and with residual “Other Africa”
countries under country code 58904, respectively.
- Data on net transactions in long-term securities by Asian (middle-east) OPEC and African OPEC countries
from 1977 forward can be found in part A of Statistics on the TIC webpage “U.S. Transactions with Foreigners in
Long-Term Securities” (www.treas.gov/tic/ticsec.shtml).
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C. Questions on foreign holdings of U.S. Treasury Securities and Foreign Official holdings:
10 a. How do the TIC data on Major Foreign
Holders of U.S. Treasury Securities compare with FRBNY custody
holdings?
TIC users often attempt to reconcile holdings of Treasury securities by foreign
official institutions as reported in the memo lines of the TIC table "Major
Foreign Holders of U.S. Treasury Securities" (www.treas.gov/tic/mfh.txt)
with the memo lines of the Federal Reserve Statistical Release H.4.1 "Factors Affecting Reserve Balances"
(www.federalreserve.gov/releases/h41/),
which lists Treasury securities held in custody by the Federal Reserve System,
primarily for foreign official institutions at the Federal Reserve Bank of New York
(FRBNY). This note outlines the comparability of these two series and explains why
both positions and monthly changes in the two series may differ. Users are also
advised to read the companion note "Methodology for Estimating Holdings of Treasury Securities in the
table “Major Foreign Holders of U.S. Treasury Securities” (www.treas.gov/tic/method-mfh.html)
to understand how the TIC positions in that table are constructed.
- Differences in coverage: The most important reason for differences between holdings reported in the TIC and the FRBNY custody accounts is a difference in coverage. First, not all foreign official holdings of Treasury securities as reported by the TIC system are held at FRBNY. In particular, Treasury securities held by private custodians on the behalf of foreign official institutions are included in the TIC but not in the FRBNY figures. In this sense, the coverage of the TIC system is broader than that of the FRBNY custody holdings. Second, the custody holdings at FRBNY include securities held for some international organizations as well as for foreign official institutions. In this sense, the coverage of the FRBNY custody holdings is broader than the foreign official designation in the TIC system.
- Differences in timing: The TIC system records holdings and transactions as of the end of the last business day of each calendar month whereas FRBNY custody holdings are reported in the H.4.1. as of the week ending Wednesday. This difference in timing can lead to slight differences in both positions and transactions over a month or a quarter. TIC data are released monthly with approximately a 1½ month lag. The H.4.1. release is weekly.
- Differences in valuation: The custody holdings at FRBNY are a tabulation of securities held at face value. TIC Major Foreign Holders data are a hybrid of market and face values. As described in the companion note, the major foreign holders table includes holdings of Treasury bonds at market value as of the most recent liabilities survey, which are then projected forward using more recent monthly transactions, also at market value. Treasury bills and certificates are included at face value. These differences in valuation can also make slight differences in both holdings and in changes in holdings as reported by the two systems.
- A fourth source of discrepancy arises because the TIC system of monthly net purchases or sales of long-term securities is specifically designed to capture only U.S. cross-border transactions. If a foreign official institution acquires a Treasury security from a private foreign entity on a foreign securities exchange and then has the security held in custody at FRBNY, reported custody holdings will increase. However, there will not be a corresponding TIC-reported foreign official purchase because this is not a U.S. cross-border transaction: it is a foreign-to-foreign transaction. Note that when the Treasury security first was acquired by the private foreigner, there would have been a U.S. cross-border transaction reportable in the TIC system but it would not be recorded as a foreign official purchase, nor would it necessarily be recorded in the same calendar month or against the same country as the movement into custody at FRBNY.
- Foreign official institutions may also transfer Treasury securities into or out of the custody of FRBNY from other U.S custodians. Such a shift would show up as an increase or decrease in custody holdings at FRBNY, but (appropriately) would not show up as a foreign official transaction in the TIC data because there is no U.S. cross-border transaction. Thus, holdings of Treasury securities as reported on the Major Foreign Holders table would remain unchanged while holdings reported by FRBNY would rise or fall.
Comparison of estimates of Foreign
Official Holdings of U.S. Treasury Securities (Billions
of Dollars)
|
|
Major Foreign
Holders Table
|
H.4.1. Release
|
End-June 2006
|
1397.7
|
1118.9
|
End-September 2006
|
1426.0
|
1123.4
|
End-December 2006
|
1449.0
|
1162.2
|
Change: Q3 2006
|
28.3
|
4.5
|
Change: Q4 2006
|
23.0
|
38.8
|
Data as of August 15, 2007.
|
10 b: How do the TIC data on foreign official transactions
in U.S. agency securities compare with changes in FRBNY custody
holdings?
TIC users sometimes attempt to reconcile the TIC-reported
net purchases of U.S. long-term agency securities by foreign
official institutions, as shown in the table "Net Foreign
Purchases of U.S. Long-term Securities by Major Foreign Sector:
U.S. Gov't Corp & Federally-sponsored Agency Bonds" (line
2.b of the TIC securities webpage, available at: www.treas.gov/tic/agnsect.txt
), with changes in the custody holdings of agency securities
at the Federal Reserve Bank of New York (FRBNY) as reported
in the memo lines of Federal Reserve Statistical Release H.4.1.
The reasons outlined in FAQ number 10a above on comparing
TIC-reported foreign official holdings and transactions in
U.S. Treasury securities with custody holdings of Treasury
securities as reported in the Federal Reserve Statistical
Release H.4.1 apply to agency securities as well. However,
two additional considerations apply regarding foreign official
acquisitions of agency securities.
The first consideration is that the FRBNY custody holdings
of both Treasury and agency securities include both long-term
and short-term securities, while the TIC Form S data used
in the net agency bond purchases table noted above record
only net purchases of long-term bonds: securities with an
original maturity of one year or more. In comparing changes
in the FRBNY custody data for foreign official acquisitions
of Treasury securities with the TIC data, net purchases of
Treasury bonds as reported on the TIC Form S are combined
with changes in foreign official holdings of short-term U.S.
Treasury securities as reported in the TIC statistics on banking
liabilities to foreigners, thus allowing for a comparable
measure of transactions in U.S. Treasury securities. However,
the TIC banking data do not distinctly break out foreign official
holdings of short-term agency securities, and so the more
comparable measure of foreign official transactions in agency
securities is not available. If the major reason for an increase
in FRBNY custody holdings of agency securities over a given
period is acquisitions of short-term agency securities, these
two data sources will necessarily differ. Note, however, that
total foreign holdings of a broader class of short-term negotiable
securities, including agency securities, commercial paper,
negotiable certificates of deposit, and bankers acceptances,
is reported, by country, with the monthly banking liabilities
data.
A second consideration regards the treatment of mortgage-backed
or other asset-backed securities that are subject to periodic
principal repayments prior to maturity. Securities held in
custody at FRBNY are listed at (original) face value. To the
extent that foreign official institutions hold mortgage-backed
agency debt, the FRBNY custody holdings will overstate the
actual market value of these securities, because these values
will not have been adjusted for principal repayments. Thus,
changes in total holdings of these securities may not accurately
reflect net foreign official acquisitions of long-term agency
securities. On the other hand, as noted in FAQ number 13,
the TIC Form S transactions data overstate net foreign purchases
of long-term agency securities because they also do not account
for the principal repayments. Foreign official holdings of asset-backed
agency bonds have grown notably in recent years, from $4 billion (about
3 percent of total official holdings of long-term agency debt securities)
as of June 2002 to $118 billion (about 25 percent) by June 2006. As noted
in FAQ number 13, the TIC website provides monthly estimates for July 2002
forward of principal repayment flows on foreign official holdings of asset-backed agency bonds.
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11. What are the differences between
the table on "Major Foreign Holders of U.S. Treasury
Securities" (item Part A.3 under Statistics) and the
table "Net Foreign Purchases of U.S. Long-Term Securities
by Major Foreign Sector: U.S. Treasury Bonds and Notes"
(item Part A.2.a under Statistics)?"
The "Net Purchases of U.S. Long-term Securities by Major
Foreign Sector : U.S. Treasury Bonds & Notes" table
(www.treas.gov/tic/tressect.txt)
gives a monthly breakdown of net transactions in long-term
U.S. Treasury securities by sector, including net purchases
by foreign official institutions, by international and regional
organizations, and by other private foreigners, as reported
on the TIC Form S. The “Major Foreign Holders”
of U.S. Treasuries table (www.treas.gov/tic/mfh.txt)
additionally includes short-term Treasury Bills and Certificates
(Treasury securities with original maturity of less than one
year), which are reported on TIC Form BL-2, as well as a small
amount of non-marketable zero-coupon Treasury notes held by
selected foreign official institutions. The difference in
the total change calculated from the Major Foreign Holders
table and the change reported in the Net Purchases table primarily
reflects changes in holdings of Treasury Bills and Certificates.
Users are also advised to read the companion note "Methodology
for Estimating Holdings of Treasury Securities in the table
“Major Foreign Holders of U.S. Treasury Securities” (www.treas.gov/tic/method-mfh.html)
to understand how the TIC positions in that table are constructed.
For further detail on the Major Foreign Holders table, see
FAQ number 10.
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12. Where can I find comprehensive measures of foreign official holdings of
U.S. or dollar-denominated assets? Why are there differences between these various measures?
A detailed comparison of various measures of foreign official holdings of U.S. assets is available
from the paper and accompanying table at:
http://www.treas.gov/tic/fohdefs1.904.pdf
htp://www.treas.gov/tic/fohdefs2.904.pdf
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D. Questions on other types of securities in the TIC data:
13. Are mortgage-backed or other asset-backed securities included in the TIC data?
Yes, foreign holdings of mortgage-backed and other asset-backed securities are included in the annual surveys of
foreign holdings of U.S. securities, and transactions in asset-backed securities are included in the TIC data on
transactions in long-term securities. Table 4 of the recent Survey report "Foreign Portfolio Holdings of U.S.
Securities as of June 2006" indicates that at that time, about 39 percent of the long-term U.S. government agency
securities held by foreigners were asset-backed securities. Of long-term corporate debt securities held by foreigners,
about 29 percent were asset-backed securities. Table 8 of the June 2006 survey report provides, for the first time,
additional detail on the split between foreign holdings of corporate mortgage-backed securities and other
corporate asset-backed securities. As of June 2006, foreign holdings of corporate mortgage-backed securities
amounted to $341 billion, about 57 percent of all foreign holdings of corporate asset-backed securities
Although cross-border transactions in asset-backed securities
are captured on the TIC S form, it is not possible in the
monthly TIC S transactions data to differentiate transactions
in asset-backed securities from transactions in other long-term
agency or corporate debt securities. More importantly, the
TIC S form cannot capture the periodic (often monthly) principal
payments that are distributed to holders of asset-backed securities
prior to redemption. Users should be aware that use of the
TIC Form S data without considering the effect of these principal
payments may lead to a significant overestimate of foreign
net holdings of U.S. securities. To assist TIC users,
the Federal Reserve Bank of New York (FRBNY) has estimated
monthly principal repayments of asset-backed securities to foreign
holders, including repayments on official holdings of agency
asset-backed securities, beginning with July 2002. Further
details, including the estimated adjustment data and the methodology
used to estimate these adjustments, can be found at: www.treas.gov/tic/absprin.html
The TIC transactions data for purchases and sales of foreign bonds are also likely to
include transactions in foreign asset-backed debt securities.
Table 23 from the survey report "U.S. Portfolio Holdings of Foreign Securities
at end-year 2005" shows that long-term asset-backed debt securities accounted for
about 13 percent of all foreign long-term debt securities held by U.S. investors,
an increase from less than 1 percent as of December 2001.
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14. Are American Depositary Receipts (ADRs) included in the TIC data?
Yes, American Depositary Receipts (ADRs) are included in the TIC data as foreign equities.
Although they trade on U.S. exchanges in U.S. dollars, owners of ADRs are entitled to the same
dividends, capital gains or losses, and voting rights as if the underlying foreign shares were
directly owned. In the monthly securities transactions data, purchases and sales of ADRs are
included along with purchases and sales of all other foreign equity. Details on U.S. holdings
of ADRs by country are available in the survey reports on U.S. holdings of foreign securities.
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15. What securities are included in "corporate and other" bonds in the
survey reports and in the monthly TIC transactions data?
These securities are overwhelmingly U.S. corporate debt securities, but also include some
municipal debt securities and a smaller amount of debt securities issued by non-profit organizations.
As of the June 2006 survey, foreign holdings of municipal bonds accounted for only about $30 billion
of the $2,021 billion total in "corporate and other" debt securities held by foreigners.
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16. Where are data on short-term securities included?
As noted in FAQ number 2, data on foreign holdings of
U.S. short-term securities and on U.S. holdings of foreign
short-term securities are included in the data on bank-reported
liabilities to and claims on foreigners. Data on foreign holdings
of short-term U.S. Treasury securities are available on the
TIC website under the link to U.S. bank-reported liabilities
to foreigners: www.treas.gov/tic/ticliab.html,
in column (9) for data since February 2003 (as the sum of
columns (7) plus (11) for data before February 2003).
Beginning with the survey of U.S. holdings of foreign securities as of December 2001 and the survey of foreign holdings of U.S. securities as of June 2002, security-by-security data have also been collected for short-term securities on the position surveys.
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17. Where can I find data on U.S. transactions in foreign securities?
U.S.-cross border gross transactions in foreign bonds
and foreign stocks are reported on the monthly TIC Form S
under the columns "foreign purchases of foreign bonds"
and "foreign sales of foreign bonds", and "foreign
purchases of foreign stocks" and "foreign sales
of foreign stocks". From the U.S. investor perspective,
foreign sales of foreign bonds correspond to U.S. purchases
of foreign bonds, and foreign purchases correspond to U.S.
sales. Thus net U.S. purchases of foreign bonds can be constructed
from the tables of U.S. transactions with foreigners in long-term
securities as the amount in column 10 minus the amount in
column 5, and net U.S. purchases of foreign stocks can be
constructed as the amount in column 11 minus the amount in
column 6. The tables by country can be found at: www.treas.gov/tic/ticsec.html
Additionally, the TIC website now includes a time series
table of U.S. net transactions in foreign securities. This
table series presents net transactions in foreign securities
from a balance of payments perspective, where U.S. net purchases
of foreign securities have a negative sign, denoting an outflow
of capital from the United States, and U.S. net sales of foreign
securities have a positive sign. The time series table is
available at: www.treas.gov/tic/netfsec.txt.
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18. Where are transactions in and holdings of dollar-denominated
foreign bonds reported?
In the TIC S monthly transactions data, all such bonds are considered foreign bonds
regardless of the currency of denomination, and are included in the data on U.S. transactions
in foreign securities (see FAQ no. 17). Tables 8 and 21 of the Survey report "U.S. Portfolio
Holdings of Foreign Securities at End-year 2005" give information on the
currency denomination of U.S. holdings of long-term securities.
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19. What are the stock swap data and how should I adjust for stock swaps?
The TIC Form S gathers data, primarily from securities
brokers and dealers, on cross-border purchases, sales, and
redemptions of long-term securities. However, TIC S-reporters
do not have the information to report acquisitions of equities
through merger-related stock swaps; that is, the cross-border
exchange of equity that frequently is part of the financing
of cross-border mergers and acquisitions. Use of the TIC Form
S data without considering the effect of stock swaps may lead
to a significant underestimate of cross-border equity flows.
To assist TIC users, the Federal Reserve Board has estimated
monthly stock swaps from January 2000 forward. Further details,
including the estimated adjustment data, advice on the use
of the adjustment data, and the methodology used to estimate
these adjustments, can be found at: www.treas.gov/tic/swapstk.html
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20. Where can I find estimates of how much foreigner investors hold of the outstanding stock of U.S. securities?
The most reliable estimates of foreign holdings of U.S.
securities are derived from the comprehensive annual surveys
of foreign portfolio holdings of U.S. securities. Table 2
of the Survey report "Foreign Portfolio Holdings of U.S. Securities
as of June 30, 2006" indicates that at that time foreign investors
held 52.0 percent of outstanding marketable long-term Treasury
securities, 16.8 percent of long-term Agency securities, 20.4
percent of long-term corporate debt securities, and 10.2 percent
of U.S. equities.
Users looking for more recent estimates of the fraction of
total Treasury securities (including short-term Treasury Bills
and Certificates) held by foreigners can compare the monthly
estimates from table on "Major Foreign Holders of U.S.
Treasury securities"; (available at: http://www.treas.gov/tic/mfh.txt
) to the total Treasury debt outstanding and held by the public
from the Monthly Statement of the Public Debt, available at:
www.treasurydirect.gov/govt/govt.htm.
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21. Where can I find estimates of how much U.S. investors hold of the outstanding stock of foreign securities?
The most reliable estimates of U.S. holdings of foreign
securities are derived from the comprehensive surveys of U.S.
portfolio holdings of foreign securities. Table 28 of the
Survey report "U.S. Portfolio Holdings of Foreign Securities at End-year 2005"
indicates the percentage of foreign equity market capitalization held by U.S.
investors at that date.
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Revisions to this webpage:
-- Aug. 1, 2005: FAQs 7, 8, 10a, 10b, 13, 15, 18,
20, and 21 to reflect findings from the recent report on Foreign
Holdings of U.S. Securities at end-June 2004.
-- Feb. 15, 2007: FAQ 9 to reflect new hist. data on oil-exporting countries.
-- Aug 30, 2007: FAQs 1, 5, 6, 7, 8, 10a, 10b, 13, 15, 18, 20, and 21 to reflect
publication of derivatives statistics, web publication of the Federal Reserve
Statistical Bulletin, and findings from the recent reports on "U.S. Portfolio Holdings
of Foreign Securities at End-year 2005" and "Foreign Portfolio Holdings of U.S.
Securities as of June 30, 2006".
Last Updated:
August 30, 2007
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