Foreign countries hold $1.32 trillion in U.S. mortgage-backed securities (MBS), accounting for 15% of the total outstanding. At the end of January, China, one of the largest holders of these securities, had already reduced its MBS holdings by 8.7% year over year and by 20% by early December of the previous year. Japan, another significant holder, also showed a decline in its MBS at the start of December. If China and Japan accelerate their sales, and other nations follow suit, mortgage rates could rise even further. This scenario is particularly concerning as the spring housing market struggles with high home prices and weakening consumer confidence. A recent Redfin survey revealed that one in five potential homebuyers sell stock to finance their down payments. Additionally, the U.S. Federal Reserve is currently reducing its own MBS portfolio, adding potential pressure to the market.
Peter St Onge, Ph.D.
@profstonge
ยท
Mar 25 Foreign companies are lining up to invest in America — $3 trillion and counting.These will create hundreds of thousands of high-paying jobs. And if Congress gets moving on tax cuts it could go much higher.
Stivali Ryder #BlueCrew
@StivaliRyder
ยท
33m Donnie Dumbfuck caved right after countries started selling their U.S. Bonds. China and other foreign countries can also destroy the U.S. housing market because they own $1.32 trillion worth of U.S. mortgage-backed securities.
Data Driven Stocks
@stockdatamarket
ยท
Apr 9 China can do the same โ we may see a large sell-off across Asia. Foreign investors collectively own approximately 40% of U.S. assets, and China plays a significant role in that.
NewRulesGeopolitics
@NewRulesGeo
ยท
Apr 8 A weaker dollar would raise costs for $3 trillion in imports, thereby affecting consumers.If foreign investors, who currently hold 40% of US Treasuries, decide to sell off their holdings, borrowing costs could skyrocket.Such a scenario could seriously strain the US
The Market Ear
@themarketear
ยท
Mar 22 Foreigners hold a record amount of US stocks. And they have just started selling. Deutsche Bank says that there could easily be one trillion dollars of foreign selling. This is way bigger than the corporate demand (=the biggest buyer)
Global Markets Investor
@GlobalMktObserv
ยท
Apr 5 The risk of historic EXODUS out of US stocks is underappreciated:Over the last 5 years, a record $18 TRILLION foreign capital has flowed into US equities.This is ~60% of the US GDP!Foreigners have already started to sell dollar assets.
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
