EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, THURSDAY, September 25, 2014 Christopher A. Gohrband: (202) 606-9564 BEA 14-47 Elena L. Nguyen: (202) 606-9555 Doug Weinberg: (202) 606-9590 (For inquiries regarding direct investment) U.S. Net International Investment Position: End of Second Quarter 2014 The U.S. net international investment position at the end of the second quarter of 2014 was -$5,445.1 billion (preliminary) as the value of U.S. liabilities exceeded the value of U.S. assets (table 1). At the end of the first quarter of 2014, the net position was -$5,511.7 billion (revised). The $66.6 billion increase in the net position reflected a $913.2 billion increase in the value of U.S. assets and an $846.7 billion increase in the value of U.S. liabilities. The U.S. net international investment position increased 1.2 percent in the second quarter, compared with a decrease of 2.4 percent in the first quarter and an average quarterly decrease of 7.4 percent from the first quarter of 2011 through the fourth quarter of 2013. The net position was equal to 2.7 percent of the value of all U.S. financial assets at the end of the second quarter, down from 2.8 percent at the end of the first quarter./1/ U.S. assets were $24,933.3 billion at the end of the second quarter compared with $24,020.1 billion at the end of the first quarter. The $913.2 billion increase reflected an $882.2 billion increase in the value of assets excluding financial derivatives and a $31.1 billion increase in the value of financial derivatives. U.S. assets excluding financial derivatives were $22,247.8 billion at the end of the second quarter compared with $21,365.7 billion at the end of the first quarter. The $882.2 billion increase reflected a $241.7 billion increase resulting from financial transactions and a $640.5 billion increase resulting from other changes in position./2/ Other changes in position were mostly attributable to an increase in foreign stock prices that raised the value of U.S. portfolio investment assets, and to an increase in the market value of equity in direct investment. U.S. liabilities were $30,378.4 billion at the end of the second quarter compared with $29,531.7 billion at the end of the first quarter. The $846.7 billion increase reflected a $781.0 billion increase in the value of liabilities excluding financial derivatives and a $65.6 billion increase in the value of financial derivatives. U.S. liabilities excluding financial derivatives were $27,728.2 billion at the end of the second quarter compared with $26,947.2 billion at the end of the first quarter. The $781.0 billion increase reflected a $248.4 billion increase resulting from financial transactions and a $532.7 billion increase resulting from other changes in position. Other changes in position were mostly attributable to an increase in U.S. stock prices that raised the value of foreign portfolio investment in the United States, and to an increase in the market value of equity in direct investment. Revisions The U.S. net international investment position at the end of the first quarter of 2014 was revised to -$5,511.7 billion from a previously-published value of -$5,539.3 billion. The $27.7 billion upward revision to the net position reflected a $418.6 billion upward revision to U.S. assets that exceeded a $390.9 billion upward revision to U.S. liabilities. U.S. assets at the end of the first quarter were revised to $24,020.1 billion from $23,601.5 billion, and U.S. liabilities were revised to $29,531.7 billion from $29,140.8 billion. These revisions reflect revised source data from the Treasury International Capital (TIC) reporting system and from BEA’s quarterly surveys of direct investment. * * * Release dates in 2014: End of the Fourth Quarter and Year 2013..........................March 26, 2014 (Wednesday) End of the First Quarter of 2014, Year 2013, and Annual Revisions....June 30, 2014 (Monday) End of the Second Quarter of 2014.............................September 25, 2014 (Thursday) End of the Third Quarter of 2014................................December 30, 2014 (Tuesday) * * * BEA’s national, international, regional, and industry statistics; the Survey of Current Business; and BEA news releases are available without charge at (www.bea.gov). At the site, you can also subscribe to receive free e-mail summaries (http://www.bea.gov/_subscribe/index_vocus.htm) of BEA releases and announcements. __________________ NOTE: This news release is available on BEA’s Web site (www.bea.gov) along with Highlights (http://www.bea.gov/newsreleases/international/intinv/2014/pdf/intinv214_fax.pdf) related to this release, the latest detailed statistics (http://www.bea.gov/iTable/index_ita.cfm) for the U.S. international investment position, and a description of the estimation methods (http://www.bea.gov/international/concepts_methods.htm)used to compile them. The second- quarter statistics in this release are preliminary and will be revised on December 30, 2014. 1 Board of Governors of the Federal Reserve System (FRS), “Table L.5 Total Liabilities and Its Relation to Total Financial Assets,” in Financial Accounts of the United States, Second Quarter 2014, Z.1. Statistical Release (Washington, DC: FRS, September 18, 2014): 11. According to the September release, at the end of the second quarter, the value of all U.S. financial assets was $198,250.1 billion. The value of U.S. assets abroad was $24,933.3 billion, or 12.6 percent of all U.S. assets, up from 12.3 percent at the end of the first quarter and down from the 14.1 percent series peak at the end of the first quarter of 2008. 2 For statistics on financial transactions, see the financial account in table 1.2 (http://bea.gov/iTable/iTableHtml.cfm?reqid=62&step=6&isuri=1&6221=2&6220=1,2&6210=1&6200=2&6224=&6223=&6222=0&6230=1) of the U.S. International Transactions Accounts. Quarterly financial transactions discussed in this release are not seasonally adjusted. Detail on other changes in position such as price changes, exchange-rate changes, and other changes in volume and valuation are available only for annual statistics. Table 1. U.S. Net International Investment Position at the End of the Period [Millions of dollars, not seasonally adjusted] Change: Line Type of investment 2013 2014 2014:I to I II III IV I r II p 2014:II 1 U.S. net international investment position (line 4 less line 35)................................... -5,110,866 -5,523,614 -4,994,895 -5,382,996 -5,511,678 -5,445,100 66,578 2 Net international investment position excluding financial derivatives (line 5 less line 36).... -5,150,891 -5,582,966 -5,042,858 -5,456,542 -5,581,501 -5,480,397 101,104 3 Financial derivatives other than reserves, net (line 6 less line 37)........................... 40,025 59,352 47,963 73,546 69,823 35,297 -34,526 4 U.S. assets...................................................................................... 22,650,385 21,904,000 22,954,418 23,709,843 24,020,053 24,933,302 913,249 5 Assets excluding financial derivatives (sum of lines 7, 10, 21, and 26)...................... 19,402,008 19,078,933 20,193,002 20,890,008 21,365,676 22,247,826 882,150 6 Financial derivatives other than reserves, gross positive fair value (line 15)............... 3,248,377 2,825,067 2,761,416 2,819,835 2,654,377 2,685,476 31,099   By functional category:         7 Direct investment at market value............................................................ 6,185,179 6,146,656 6,690,152 7,080,058 7,117,452 7,442,041 324,589 8 Equity..................................................................................... 5,237,927 5,162,185 5,699,007 6,070,002 6,135,437 6,430,591 295,154 9 Debt instruments........................................................................... 947,252 984,471 991,145 1,010,056 982,015 1,011,450 29,435 10 Portfolio investment......................................................................... 8,230,586 8,146,302 8,721,240 9,183,060 9,387,778 9,974,355 586,577 11 Equity and investment fund shares.......................................................... 5,524,329 5,508,752 6,037,266 6,444,232 6,593,895 7,021,547 427,652 12 Debt securities............................................................................ 2,706,257 2,637,550 2,683,974 2,738,828 2,793,883 2,952,808 158,925 13 Short term............................................................................... 431,424 451,835 458,953 446,710 437,064 479,090 42,026 14 Long term................................................................................ 2,274,833 2,185,715 2,225,021 2,292,118 2,356,820 2,473,718 116,898 15 Financial derivatives other than reserves, gross positive fair value......................... 3,248,377 2,825,067 2,761,416 2,819,835 2,654,377 2,685,476 31,099 16 Over-the-counter contracts................................................................. 3,212,569 2,778,730 2,718,224 2,783,047 2,618,573 2,651,088 32,515 17 Single-currency interest rate contracts.................................................. 2,616,516 2,205,507 2,171,063 2,207,692 2,074,456 2,169,785 95,329 18 Foreign exchange contracts............................................................... 276,419 268,643 258,064 291,934 271,566 229,304 -42,262 19 Other contracts.......................................................................... 319,634 304,580 289,097 283,421 272,551 251,999 -20,552 20 Exchange-traded contracts.................................................................. 35,808 46,337 43,192 36,788 35,804 34,388 -1,416 21 Other investment............................................................................. 4,433,184 4,339,768 4,298,183 4,178,557 4,389,562 4,353,565 -35,997 22 Currency and deposits...................................................................... 2,056,381 2,021,105 1,977,487 1,972,149 1,949,267 1,936,919 -12,348 23 Loans...................................................................................... 2,321,889 2,259,549 2,276,647 2,161,123 2,401,733 2,376,741 -24,992 24 Insurance technical reserves............................................................... n.a. n.a. n.a. n.a. n.a. n.a. n.a. 25 Trade credit and advances.................................................................. 54,915 59,115 44,049 45,286 38,562 39,905 1,343 26 Reserve assets............................................................................... 553,058 446,207 483,426 448,333 470,884 477,865 6,981 27 Monetary gold.............................................................................. 417,941 311,707 346,878 314,975 337,791 343,871 6,080 28 Special drawing rights..................................................................... 53,704 53,881 54,966 55,184 55,394 55,411 17 29 Reserve position in the International Monetary Fund........................................ 34,039 33,860 33,462 30,750 29,820 30,535 715 30 Other reserve assets....................................................................... 47,374 46,759 48,120 47,424 47,879 48,048 169 31 Currency and deposits.................................................................... 23,039 21,351 21,575 20,889 20,930 24,777 3,847 32 Securities............................................................................... 22,152 21,570 22,078 21,436 21,727 21,866 139 33 Financial derivatives.................................................................... ..... ..... ..... ..... ..... ..... ..... 34 Other claims............................................................................. 2,183 3,838 4,467 5,099 5,222 1,405 -3,817 35 U.S. liabilities................................................................................. 27,761,250 27,427,614 27,949,313 29,092,840 29,531,731 30,378,403 846,672 36 Liabilities excluding financial derivatives (sum of lines 38, 41, and 56).................... 24,552,898 24,661,899 25,235,860 26,346,551 26,947,177 27,728,224 781,047 37 Financial derivatives other than reserves, gross negative fair value (line 50)............... 3,208,352 2,765,715 2,713,453 2,746,289 2,584,554 2,650,179 65,625   By functional category:         38 Direct investment at market value............................................................ 5,018,930 5,131,714 5,342,443 5,790,551 5,688,887 5,950,358 261,471 39 Equity..................................................................................... 3,753,276 3,845,433 4,041,326 4,461,978 4,387,205 4,621,344 234,139 40 Debt instruments........................................................................... 1,265,654 1,286,281 1,301,117 1,328,573 1,301,682 1,329,014 27,332 41 Portfolio investment......................................................................... 14,569,596 14,432,860 14,882,136 15,503,192 15,904,348 16,321,218 416,870 42 Equity and investment fund shares.......................................................... 5,000,428 5,076,621 5,376,543 5,821,487 5,993,925 6,252,184 258,259 43 Debt securities............................................................................ 9,569,168 9,356,239 9,505,593 9,681,705 9,910,423 10,069,034 158,611 44 Short term............................................................................... 914,503 882,452 829,577 892,655 904,771 877,559 -27,212 45 Treasury bills and certificates........................................................ 720,235 675,367 645,114 686,036 689,327 626,830 -62,497 46 Other short-term securities............................................................ 194,268 207,085 184,463 206,619 215,444 250,729 35,285 47 Long term................................................................................ 8,654,665 8,473,787 8,676,016 8,789,050 9,005,652 9,191,475 185,823 48 Treasury bonds and notes............................................................... 5,001,076 4,919,659 5,009,541 5,108,856 5,262,471 5,388,238 125,767 49 Other long-term securities............................................................. 3,653,589 3,554,128 3,666,475 3,680,194 3,743,181 3,803,237 60,056 50 Financial derivatives other than reserves, gross negative fair value......................... 3,208,352 2,765,715 2,713,453 2,746,289 2,584,554 2,650,179 65,625 51 Over-the-counter contracts................................................................. 3,173,044 2,717,685 2,667,187 2,709,746 2,551,372 2,616,558 65,186 52 Single-currency interest rate contracts.................................................. 2,563,709 2,152,279 2,114,023 2,142,859 2,013,740 2,110,019 96,279 53 Foreign exchange contracts............................................................... 300,138 272,150 270,744 290,790 270,895 255,903 -14,992 54 Other contracts.......................................................................... 309,197 293,256 282,420 276,097 266,737 250,636 -16,101 55 Exchange-traded contracts.................................................................. 35,308 48,030 46,266 36,543 33,182 33,621 439 56 Other investment............................................................................. 4,964,372 5,097,325 5,011,281 5,052,808 5,353,942 5,456,648 102,706 57 Currency and deposits...................................................................... 2,598,915 2,702,344 2,677,595 2,758,129 2,681,963 2,757,956 75,993 58 Loans...................................................................................... 2,168,736 2,193,088 2,138,770 2,095,860 2,457,106 2,480,729 23,623 59 Insurance technical reserves............................................................... n.a. n.a. n.a. n.a. n.a. n.a. n.a. 60 Trade credit and advances.................................................................. 143,776 148,780 140,739 144,433 160,288 163,369 3,081 61 Special drawing rights allocations......................................................... 52,945 53,113 54,177 54,386 54,585 54,594 9 p Preliminary r Revised n.a. Not available ..... Not applicable Note: Details may not add to totals because of rounding. Source: U. S. Bureau of Economic Analysis