Tuesday 4 August, 2020

Cayman is one of the top foreign owners of US national debt

As of October 2019, Cayman was the 8th largest foreign owner of US national debt.   

Although its ownership of $225.1 billion USD experienced a decrease of $13.6 billion USD from the previous month, it showed an increase of $16.8 billion USD over the previous year. This is according to the Treasury Department’s database for Major Foreign Holders of Treasury Securities. The reason for the significant ownership is because Cayman has over 10,000 domiciled investment firms, many of which invest in US debt.

Belgium (often considered a proxy for Chinese offshore holdings) and the Saudis also offloaded a significant proportion of their Treasury holdings in October.

In October, Belgium held $208.3 billion USD of US Treasuries, a decrease of $10 billion USD from the prior month and Saudi Arabia held $178.9 billion USD, a decrease of $2.6 billion USD from the previous month.

US Gross National Debt jumped by $1.28 trillion USD as of November 2019, compared to 12 months priot, to $23.04 trillion USD. Total foreign ownership of Treasuries did not change significantly, despite posting the biggest monthly drop since September 2017.

Japan has become the largest US creditor, bypassing China.

 

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