Business Services Industry

Asian investors bank on the US.

Australasian Business Intelligence, January, 2003

Jan 22, 2003 (The Australian Financial Review - ABIX via COMTEX)

An American academic has made the observation that Asia has become a "de-facto banker" for the US. Economist Joseph Quinlan, from the John Hopkins University's Centre for Transatlantic Relations, reckons Japanese, Chinese and other Asians not only own half all foreign-held US Treasury debt, but also hold a greater level of US securities than Europeans. Corporations such as General Motors, Ford Motor Credit and Freddie Mac, a US mortgage buyer, are regular visitors to Asia, selling their securities to Asian investors. European borrowers also sell securities to Asian investors, often exclusively. Many Asian investors have no choice other than to invest in secure instruments offshore because of the...

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