Since the early 1980s, foreign portfolio investors have purchased a significant portion of U.S. Treasury bond issues.

Question:

Since the early 1980s, foreign investors have purchased a significant portion of U.S. Treasury bond issues. Discuss the short-term and long-term effects of foreigners' investment on the U.S. balance of payments.

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...