Wed 15 Mar 2020
Trade Deficit Helps Stabilize Bond and Equity Markets: 2005
Foreign funds created by the record U.S. trade deficit of $726.9 billion in 2005 were channeled mainly into the U.S. bond market. This went a long way towards keeping bond prices up, despite massive net corporate bond issues connected with asset-backed securities (mostly mortgage related) that also set impressive records: $462.9 billion. Foreign investors purchased (net) […]