EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, MONDAY, June 30, 2014 Christopher A. Gohrband: (202) 606-9564 BEA 14-31 Elena L. Nguyen: (202) 606-9555 Doug Weinberg: (202) 606-9590 (For inquiries regarding direct investment) U.S. Net International Investment Position: End of First Quarter 2014, Year 2013, and Annual Revisions ______________________________________________________________________________________________ Comprehensive Restructuring of the U.S. International Economic Accounts In this release, BEA presents the U.S. international investment position (IIP) statistics for the first quarter of 2014 along with historical revisions and detailed annual statistics for 2013. These statistics include changes in positions resulting from annual financial transactions and other changes in position such as price changes, exchange-rate-changes, and changes in volume and valuation not included elsewhere. The IIP statistics are revised to reflect newly available and revised source data, changes in estimation methods, and changes in definitions and classifications. BEA also introduces a new presentation of the IIP statistics as part of a comprehensive restructuring of BEA's international economic accounts. This change in presentation, combined with changes in definitions and classifications, enhances the quality and usefulness of the accounts and brings the statistics into closer alignment with international guidelines. In addition, the IIP statistics feature direct investment at market value instead of at current cost (see the box). Additional information on BEA's comprehensive restructuring of the international accounts is published in the March 2014 issue of the SURVEY OF CURRENT BUSINESS. A more detailed discussion of the IIP statistics and the revisions to the statistics will be published in the July issue of the SURVEY. ______________________________________________________________________________________________ First Quarter of 2014 The U.S. net international investment position at the end of the first quarter of 2014 was -$5,539.3 billion (preliminary) as the value of U.S. liabilities exceeded the value of U.S. assets (table 1). At the end of the fourth quarter of 2013, the net position was -$5,383.0 billion (revised). The $156.3 billion decrease in the net position reflected a $108.3 billion decrease in the value of U.S. assets and a $48.0 billion increase in the value of U.S. liabilities. The U.S. net international investment position decreased 2.9 percent in the first quarter, compared with a decrease of 7.8 percent in the fourth 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 2.8 percent of the value of all U.S. financial assets at the end of the first quarter, unchanged from the end of the fourth quarter. /1/ U.S. assets were $23,601.5 billion at the end of the first quarter compared with $23,709.8 billion at the end of the fourth quarter. The $108.3 billion decrease reflected a $402.0 billion decrease in the value of financial derivatives that was partly offset by a $293.6 billion increase in the value of assets excluding financial derivatives. U.S. assets excluding financial derivatives were $21,183.6 billion at the end of the first quarter compared with $20,890.0 billion at the end of the fourth quarter. The $293.6 billion increase reflected a $153.1 billion increase resulting from financial transactions and a $140.5 billion increase resulting from other changes in position. /2/ Other changes in position were mostly attributable to an increase in foreign stock and bond prices that raised the value of U.S. portfolio investment assets, and to an increase in the market price of gold that raised the value of U.S. reserve assets. U.S. liabilities were $29,140.8 billion at the end of the first quarter compared with $29,092.8 billion at the end of the fourth quarter. The $48.0 billion increase reflected a $444.6 billion increase in the value of liabilities excluding financial derivatives that was partly offset by a $396.6 billion decrease in the value of financial derivatives. U.S liabilities excluding financial derivatives were $26,791.1 billion at the end of the first quarter compared with $26,346.6 billion at the end of the fourth quarter. The $444.6 billion increase reflected a $231.0 billion increase resulting from financial transactions and a $213.6 billion increase resulting from other changes in position. Other changes in position were mostly attributable to increases in U.S. stock and bond prices that raised the value of foreign portfolio investment in the United States. Year 2013 The U.S. net international investment position was -$5,383.0 billion (revised) at the end of 2013 compared with -$4,578.2 billion (revised) at the end of 2012. The $804.8 billion decrease in the net position reflected a $1,994.2 billion increase in the value of U.S. liabilities that exceeded a $1,189.5 billion increase in the value of U.S assets (table 2). The U.S. net international investment position decreased 17.6 percent from the end 2012 to the end of 2013, compared with a 2.8 percent decrease from yearend 2011 to yearend 2012. Highlights for 2013: * Net U.S. incurrence of liabilities (financial inflows) exceeded net U.S. acquisition of assets (financial outflows) by $370.7 billion. * Net U.S. incurrence of portfolio investment liabilities was about half of all financial inflows. Net incurrence of direct investment and other investment liabilities were also significant. * Net U.S. acquisition of portfolio and direct investment assets were partly offset by net U.S. sales of other investment assets. * The price appreciation of U.S. liabilities exceeded the price appreciation of U.S. assets by $182.7 billion, partly due to the price depreciation of U.S. monetary gold. * The appreciation of foreign stock prices raised the value of U.S. equity assets in direct investment and portfolio investment, more than accounting for the total price appreciation of U.S. assets. Price appreciation of equity was partly offset by price depreciation of debt securities. * The appreciation of U.S. stock prices raised the value of U.S. equity liabilities in direct investment and portfolio investment, more than accounting for the total price appreciation of U.S. liabilities. Price appreciation of equity was partly offset by price depreciation of debt securities. * The depreciation of major foreign currencies against the U.S. dollar reduced the value of U.S. assets and contributed to the decrease in the U.S. net international investment position. * Other changes in volume and valuation not included elsewhere mostly reflected the incorporation of newly available and revised source data. * The U.S. net international investment position was equal to 2.8 percent of the value of all U.S. financial assets at the end of 2013, up from 2.6 percent at the end of 2012. Financial-account transactions Net financial-account transactions of -$370.7 billion in 2013 resulted from net U.S. acquisitions of assets, excluding financial derivatives, of $644.8 billion, less net U.S. incurrence of liabilities, excluding financial derivatives, of $1,017.7 billion, plus net financial transactions from financial derivatives of $2.2 billion. Net U.S. acquisition of assets excluding financial derivatives was $644.8 billion, up from $171.4 billion in 2012. In 2013, financial outflows for portfolio and direct investment assets were partly offset by net U.S. sales of other investment and reserve assets. Net U.S. incurrence of liabilities excluding financial derivatives was $1,017.7 billion, up from $602.0 billion in 2012. In 2013, financial inflows for direct investment and other investment, and net foreign purchases of U.S. debt securities were partly offset by net foreign sales of U.S. equity and investment funds shares. Price, exchange-rate, and changes in volume and valuation not included elsewhere (n.i.e.) Other changes in the U.S. net international investment position for 2013 included -$231.3 billion in exchange-rate changes, -$182.7 billion in price changes, and -$33.6 billion in changes in volume and valuation n.i.e. Price changes led to a decrease of $182.7 billion in the U.S. net international investment position, reflecting price appreciation of U.S. liabilities that exceeded price appreciation of U.S. assets, which was partly reduced by price depreciation of U.S. monetary gold. Exchange-rate changes led to a decrease of $231.3 billion in the U.S. net international investment position, as reflected in the 3.9 percent depreciation of a trade-weighted index of major foreign currencies. /3/ Exchange-rate changes lowered the dollar value of U.S. assets more than they lowered the dollar value of U.S. liabilities denominated in foreign currencies. Changes in volume and valuation n.i.e. led to a decrease of $33.6 billion in the U.S. net international investment position. These changes reflected the incorporation of newly available source data on aggregate holdings of long-term securities by U.S. and foreign residents from the Treasury International Capital reporting system (TIC), more complete TIC reporting of the nonbanking and banking data, capital gains and losses from the sale of direct investment assets, and other adjustments to source data. (See the Annual Revisions section for more information on the TIC source data.) Investment positions at the end of 2013 U.S. assets were $23,709.8 billion at the end of 2013 compared with $22,520.3 billion at the end of 2012. The $1,189.5 billion increase reflected a $1,989.4 billion increase in the value of assets excluding financial derivatives that was partly offset by a $799.9 billion decrease in the value of financial derivatives. U.S. assets excluding financial derivatives were $20,890.0 billion at the end of 2013 compared with $18,900.6 billion at the end of 2012. The $1,989.4 billion increase reflected financial outflows of $644.8 billion and other changes in position of $1,344.7 billion. Other changes in position were attributable to a $1,616.5 billion increase in price changes from rising foreign equity prices that was partly offset by a $260.5 billion decrease in exchange- rate changes from the depreciation of major foreign currencies against the dollar, and an $11.4 billion decrease in changes in volume and valuation n.i.e. Direct investment assets at market value were $7,080.1 billion at the end of 2013 compared with $5,938.3 billion at the end of 2012. The $1,141.7 billion increase reflected financial outflows of $408.2 billion, mostly from net equity investment that was primarily attributable to reinvestment of earnings, and price changes of $775.0 billion. These increases were partly offset by a $15.8 billion decrease in exchange-rate changes and a $25.7 billion decrease in changes in volume and valuation n.i.e. Portfolio investment assets were $9,183.1 billion at the end of 2013 compared with $7,967.0 billion at the end of 2012. The $1,216.0 billion increase reflected financial outflows of $489.9 billion, a $960.1 billion increase in price changes, and a $3.7 billion increase in changes in volume and valuation n.i.e. These increases were partly offset by a $237.6 billion decrease in exchange-rate changes. Financial derivatives other than reserves held as assets (gross positive fair value) were $2,819.8 billion at the end of 2013 compared with $3,619.8 billion at the end of 2012. /4/ The $799.9 billion decrease was mostly attributable to decreases in the value of single-currency interest rate contracts, in part, reflecting declining market volatility. /5/ Other investment assets (currency and deposits, loans, insurance technical reserves, and trade credit and advances) were $4,178.6 billion at the end of 2013 compared with $4,422.9 billion at the end of 2012. The $244.3 billion decrease was more than accounted for by net sales of $250.3 billion in assets. Reserve assets were $448.3 billion at the end of 2013 compared with $572.4 billion at the end of 2012. The $124.0 decrease was mostly attributable to the $118.5 billion decrease in the market price of gold. U.S. liabilities were $29,092.8 billion at the end of 2013 compared with $27,098.6 billion at the end of 2012. The $1,994.2 billion increase reflected a $2,809.9 billion increase in the value of liabilities excluding financial derivatives that was partly offset by a $815.7 billion decrease in the value of financial derivatives. U.S. liabilities excluding financial derivatives were $26,346.6 billion at the end of 2013 compared with $23,536.6 billion at the end of 2012. The $2,809.9 billion increase reflected financial inflows of $1,017.7 billion, a $1,799.3 billion increase in price changes, and a $22.2 billion in changes in volume and valuation n.i.e. These increases were partly offset by a $29.2 billion decrease in exchange-rate changes. Direct investment liabilities at market value were $5,790.6 billion at the end of 2013 compared with $4,670.9 billion at the end of 2012. The $1,119.6 billion increase reflected financial inflows of $295.0 billion, mostly from net equity investment, and an $871.1 billion increase in price changes. These increases were partly offset by a $46.5 billion decrease in changes in volume and valuation n.i.e. Portfolio investment liabilities were $15,503.2 billion at the end of 2013 compared with $13,978.9 billion at the end of 2012. The $1,524.3 billion increase reflected 1) financial inflows of $490.9 billion resulting from net foreign purchases of U.S. debt securities that were partly offset by net foreign sales of U.S. stocks, 2) a $928.2 billion increase in price changes resulting from the appreciation of U.S stock prices that was partly offset by the depreciation of U.S. bond prices, and 3) a $131.5 billion increase from changes in volume and valuation n.i.e. These increases were partly offset by a $26.3 billion decrease in exchange- rate changes of U.S. debt securities denominated in foreign currencies. Financial derivatives other than reserves held as liabilities (gross negative fair value) were $2,746.3 billion at the end of 2013 compared with $3,562.0 billion at the end of 2012. The $815.7 billion decrease was mostly attributable to decreases in the value of single- currency interest rate contracts, in part, reflecting declining market volatility. Other investment liabilities (currency and deposits, loans, insurance technical reserves, and trade credit and advances) were $5,052.8 billion at the end of 2013 compared with $4,886.8 billion at the end of 2012. The $166.0 billion increase was more than accounted for by financial inflows of $231.8 billion that was partly offset by a $62.9 billion decrease in other changes and a $2.9 billion decrease in exchange-rate changes. Annual Revisions The U.S. international investment position (IIP) statistics released today have been revised from the fourth quarter of 2009 to the fourth quarter of 2013 to reflect newly available and revised data from BEA’s surveys of direct investment and data from three Treasury International Capital (TIC) surveys conducted by the Federal Reserve Board and the U.S. Department of the Treasury: Aggregate Holdings of Long-Term Securities by U.S. and Foreign Residents (SLT), the Annual Survey of U.S. Ownership of Foreign Securities (SHCA) at end- December 2012, and the Annual Survey of Foreign Portfolio Holdings of U.S. Securities (SHLA) at end-June 2013. These annual revisions also reflect changes in definitions and classifications and improved estimation methodology for the quarterly IIP statistics from the fourth quarter of 2005 to the fourth quarter of 2013 and for the annual statistics from yearend 1976 to yearend 2013. In addition, new presentations of the IIP statistics reflecting a comprehensive restructuring of the IIP accounts are available on the BEA Web site. The previous table presentations are also available with statistics through the first quarter of 2014. This is the final quarter for which presentations based on previous format will be provided. Revisions to the quarterly U.S. net international investment position are negligible for 2009, 2010, and 2012, and average less than 1 percent for 2011 and 2013. On a yearend basis, the U.S. net international investment position is revised upward by $0.1 billion for 2009, $1.1 billion for 2010, $60.8 billion for 2011, and $12.2 billion for 2013. It is revised downward by $3.2 billion for 2012. * The upward revisions to the net investment position for 2009 and 2010 reflect downward revisions to other investment liabilities incurred by the U.S. government; no other accounts were revised for these years. * U.S. assets are revised downward by $42.6 billion for 2011, $82.7 billion for 2012, and $49.9 billion for 2013. U.S. liabilities are revised downward by $103.4 billion for 2011, $79.5 billion for 2012, and $62.1 billion for 2013. These revisions are mostly attributable to the incorporation of additional data from BEA’s annual surveys of inward and outward direct investment. The July SURVEY OF CURRENT BUSINESS will contain an article with a more detailed discussion of the international investment position statistics for the first quarter of 2014, annual statistics for 2013, and revised historical data. That issue will also contain an article about direct investment positions valued at historical-cost and revised historical data on direct investment with detail by country and industry. Changes in presentation, definition, and classification * The presentation of the international investment position accounts is significantly restructured. The two major categories of holdings are renamed. U.S. assets replaces U.S.-owned assets abroad, and U.S. liabilities replaces foreign-owned assets in the United States. * U.S. assets and liabilities are classified into five functional categories: direct investment, portfolio investment, other investment, reserve assets (assets only), and financial derivatives other than reserves. o Direct investment on a market value basis is now the featured measure in the U.S. international investment position statistics. The market value basis values owners’ equity at current-period price using indexes of stock market prices. In the previous presentation, direct investment was presented on a current cost basis that values the U.S. and foreign parent shares of their affiliates’ investment in (1) plant and equipment using the current cost of capital equipment, (2) land using general price indexes, and (3) inventories using estimates of their replacement cost. /6/ In addition, direct investment is now presented on a gross basis according to whether the investment reflects an asset or a liability. In the previous presentation, direct investment was classified on a directional basis by whether the investment was outward or inward, that is, whether the direct investor was a domestic or foreign resident. The directional basis will continue to be used to compute direct investment statistics by country and area. o Portfolio and other investment assets each include positions from the previous categories of U.S. government assets other than official reserve assets and U.S. private assets. * Portfolio investment assets include equity and short- and long-term debt securities issued by foreign residents. In the previous presentation, foreign stocks and long-term debt were presented under foreign securities and short-term debt securities were commingled under U.S. banks’ and nonbanks’ claims. * Other investment assets include currency and deposits, loans, insurance technical reserves, and trade credit and advances that are debts of foreign residents to U.S. residents. In the previous presentation, these assets were categorized among banks’ and nonbanks’ claims and U.S. government assets other than reserve assets. o Portfolio and other investment liabilities each include positions from the old categories of foreign official assets in the United States and other foreign assets in the United States. * Portfolio investment liabilities include equity and short- and long-term debt securities issued by U.S. residents. In the previous presentation, these liabilities were categorized between foreign official holdings and foreign private holdings of Treasuries securities, U.S. stocks, and U.S. long-term corporate and agency debt securities. Foreign holdings of U.S. short-term debt securities were commingled under U.S. banks’ and nonbanks’ liabilities. * Other investment liabilities include currency and deposits, loans, insurance technical reserves, and trade credit and advances that are debts of U.S. residents to foreign residents. In the previous presentation, these liabilities were categorized between banks’ and nonbanks’ liabilities to foreign official and private residents. * U.S. portfolio and other investment liabilities to foreign official agencies (foreign official assets in the United States) will continue to be presented in a supplemental table [http://www.bea.gov/iTable/iTableHtml.cfm?reqid=62&step=6&isuri=1&6210=2&6200=150]. * Investment assets and liabilities are also classified by instrument (e.g., equity and investment fund shares, short- and long-term debt securities, currency and deposits, loans, insurance technical reserves, and trade credit and advances) within each functional category in the new presentation. ______________________________________________________________________________________________ The Featured Measure of Direct Investment Positions Direct investment at market value is now the featured measure of direct investment in the U.S. international investment position statistics (IIP). The market value basis values owners' equity at current-period prices using indexes of stock market prices. /1/ In addition, direct investment is now presented on an asset/liability basis. /2/ In the previous presentation of the IIP, the featured measure of direct investment was at current cost and on a directional basis. /3/ (Current-cost and historical-cost positions will continue to be available on BEA's Web site. /4/) Market-value positions are on a directional basis from 1976 to 1981 and on an asset/liability basis starting in 1982 when source data became available. The shift to an asset/liability basis in 1982 increases direct investment assets and liabilities but has no effect on the net direct investment position. The change to feature direct investment positions at market value affects the IIP statistics beginning in 1976; direct investment positions for 2009-2013 are shown in table A. Table A. Direct Investment Positions at Yearend, 2009-2013 (Millions of dollars) Type of investment 2009 2010 2011 2012 2013 Net direct investment position: Net direct investment position at market value, asset/liability basis... 1,326,662 1,387,294 1,015,601 1,267,385 1,289,507 Previously-featured net direct investment position at current cost, directional basis..................... 1,679,161 1,649,913 1,800,817 1,978,584 2,107,169 Amount of change...................... -352,499 -262,619 -785,216 -711,199 -817,662 Direct investment assets: Direct investment at market value, asset/liability basis (table 2.1, line 1)................... 4,945,292 5,486,391 5,214,826 5,938,327 7,080,058 Previously-featured direct investment at current cost, directional basis (table 2.1, line 39).................. 4,077,369 4,273,559 4,599,498 4,972,925 5,284,046 Amount of change...................... 867,923 1,212,832 615,328 965,402 1,796,012 Direct investment liabilities: Direct investment at market value, asset/liability basis (table 2.1, line 18).................. 3,618,630 4,099,097 4,199,225 4,670,942 5,790,551 Previously-featured direct investment at current cost, directional basis (table 2.1, line 44).................. 2,398,208 2,623,646 2,798,681 2,994,341 3,176,877 Amount of change...................... 1,220,422 1,475,451 1,400,544 1,676,601 2,613,674 1 For additional information on the market-value and current-cost methods, see J. Steven Landefeld and Ann M. Lawson, "Valuation of the U.S. Net International Investment Position," Survey of Current Business 71 (May 1991): 40-49. 2 Positions on an asset/liability basis are organized according to whether the positions are assets or liabilities. Assets include U.S. parent and U.S. affiliate claims, and liabilities include U.S. affiliate and U.S. parent liabilities. 3 Positions on a directional basis are organized according to whether the positions are for outward investment (U.S. direct investment abroad) or inward investment (foreign direct investment in the United States). The outward direct investment position includes U.S. parent claims less U.S. parent liabilities. The inward direct investment position includes U.S. affiliate liabilities less U.S. affiliate claims. 4 BEA publishes direct investment positions at historical cost with owners' equity at the book value reported on BEA's surveys. Historical-cost positions are on a directional basis. Country and industry detail for direct investment are available only on a historical-cost basis (see http://www.bea.gov/iTable/index_MNC.cfm). _______________________________________________________________________________________________ * * * 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 of BEA releases and announcements. _______________________________________________________________________________________________ NOTE: This news release is available on BEA's Web site along with Quarterly Highlights (http://www.bea.gov/newsreleases/international/intinv/2014/pdf/intinv114_fax.pdf) and Annual Highlights (http://www.bea.gov/newsreleases/international/intinv/2014/pdf/intinv114annual_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 first-quarter statistics for 2014 in this release are preliminary and will be revised on September 25, 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, First Quarter 2014, Z.1. Statistical Release (Washington, DC: FRS, June 5, 2014): 11. According to the June release, at the end of the first quarter, the value of all U.S. financial assets was $197,226.3 billion. The value of U.S. assets abroad was $23,601.5 billion, or 12.0 percent of all U.S. assets, down from 12.1 percent at the end of the fourth quarter and down from the 13.9 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. 3 Federal Reserve Board (FRB), Foreign Exchange Rates—H10 (weekly release of daily data), Nominal Major Currencies Index at www.federalreserve.gov. The major currencies index is the weighted average of the foreign exchange value of the U.S. dollar against a subset of the broad index currencies that circulate widely outside the country of issue. 4 A derivatives contract with a positive fair value represents the amount that a foreign resident would have to pay to a U.S. counterparty if the contract were terminated or settled. A contract with a negative fair value represents the amount that a U.S. resident would have to pay to a foreign counterparty if the contract were terminated or settled. The gross positive (negative) fair value is the sum of all contracts with positive (negative) fair values. Fair values differ from notional values, which are the underlying amounts used to calculate payments on contracts. 5 The Chicago Board of Exchange Volatility Index (VIX) fell 24 percent from the end of 2012 to the end of 2013 (http://www.cboe.com/micro/vix/historical.aspx). 6 BEA will continue to report direct investment on a current cost basis as supplemental data [http://www.bea.gov/iTable/iTableHtml.cfm?reqid=62&step=6&isuri=1&6210=2&6200=148]. Table 1. U.S. Net International Investment Position at the End of the Period [Millions of dollars, not seasonally adjusted] Change: Change: Line Type of investment 2012 2013 2014 2013:IV to 2012:IV to IV r I r II r III r IV r I p 2014:I 2013:IV 1 U.S. net international investment position (line 4 less line 35)................................... -4,578,245 -5,110,866 -5,523,614 -4,994,895 -5,382,996 -5,539,346 -156,349 -804,751 2 Net international investment position excluding financial derivatives (line 5 less line 36).... -4,636,021 -5,150,891 -5,582,966 -5,042,858 -5,456,542 -5,607,486 -150,943 -820,521 3 Financial derivatives other than reserves, net (line 6 less line 37)........................... 57,776 40,025 59,352 47,963 73,546 68,140 -5,406 15,770 4 U.S. assets...................................................................................... 22,520,346 22,650,385 21,904,000 22,954,418 23,709,843 23,601,503 -108,340 1,189,497 5 Assets excluding financial derivatives (sum of lines 7, 10, 21, and 26)...................... 18,900,585 19,402,008 19,078,933 20,193,002 20,890,008 21,183,627 293,619 1,989,423 6 Financial derivatives other than reserves, gross positive fair value (line 15)............... 3,619,761 3,248,377 2,825,067 2,761,416 2,819,835 2,417,876 -401,959 -799,926   By functional category: 7 Direct investment at market value............................................................ 5,938,327 6,185,179 6,146,656 6,690,152 7,080,058 7,142,876 62,818 1,141,731 8 Equity..................................................................................... 4,980,979 5,237,927 5,162,185 5,699,007 6,070,002 6,134,572 64,570 1,089,023 9 Debt instruments........................................................................... 957,348 947,252 984,471 991,145 1,010,056 1,008,304 -1,752 52,708 10 Portfolio investment......................................................................... 7,967,014 8,230,586 8,146,302 8,721,240 9,183,060 9,380,382 197,323 1,216,046 11 Equity and investment fund shares.......................................................... 5,311,509 5,524,329 5,508,752 6,037,266 6,444,232 6,595,284 151,052 1,132,723 12 Debt securities............................................................................ 2,655,505 2,706,257 2,637,550 2,683,974 2,738,828 2,785,098 46,271 83,323 13 Short term............................................................................... 414,909 431,424 451,835 458,953 446,710 432,690 -14,019 31,801 14 Long term................................................................................ 2,240,596 2,274,833 2,185,715 2,225,021 2,292,118 2,352,408 60,290 51,522 15 Financial derivatives other than reserves, gross positive fair value......................... 3,619,761 3,248,377 2,825,067 2,761,416 2,819,835 2,417,876 -401,959 -799,926 16 Over-the-counter contracts................................................................. 3,585,781 3,212,569 2,778,730 2,718,224 2,783,047 2,382,072 -400,975 -802,734 17 Single-currency interest rate contracts.................................................. 2,973,245 2,616,516 2,205,507 2,171,063 2,207,692 1,861,636 -346,056 -765,553 18 Foreign exchange contracts............................................................... 280,217 276,419 268,643 258,064 291,934 248,719 -43,215 11,717 19 Other contracts.......................................................................... 332,319 319,634 304,580 289,097 283,421 271,717 -11,704 -48,898 20 Exchange-traded contracts.................................................................. 33,980 35,808 46,337 43,192 36,788 35,804 -984 2,808 21 Other investment............................................................................. 4,422,876 4,433,184 4,339,768 4,298,183 4,178,557 4,189,485 10,927 -244,319 22 Currency and deposits...................................................................... 2,052,987 2,056,381 2,021,105 1,977,487 1,972,149 1,840,196 -131,953 -80,838 23 Loans...................................................................................... 2,314,165 2,321,889 2,259,549 2,276,647 2,161,123 2,312,756 151,633 -153,042 24 Insurance technical reserves............................................................... n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 25 Trade credit and advances.................................................................. 55,724 54,915 59,115 44,049 45,286 36,533 -8,753 -10,438 26 Reserve assets............................................................................... 572,368 553,058 446,207 483,426 448,333 470,884 22,551 -124,035 27 Monetary gold.............................................................................. 433,434 417,941 311,707 346,878 314,975 337,791 22,816 -118,459 28 Special drawing rights..................................................................... 55,050 53,704 53,881 54,966 55,184 55,394 210 134 29 Reserve position in the International Monetary Fund........................................ 34,161 34,039 33,860 33,462 30,750 29,820 -930 -3,411 30 Other reserve assets....................................................................... 49,723 47,374 46,759 48,120 47,424 47,879 455 -2,299 31 Currency and deposits.................................................................... 24,934 23,039 21,351 21,575 20,889 20,930 41 -4,045 32 Securities............................................................................... 23,471 22,152 21,570 22,078 21,436 21,727 291 -2,035 33 Financial derivatives.................................................................... 0 0 0 0 0 0 0 0 34 Other claims............................................................................. 1,318 2,183 3,838 4,467 5,099 5,222 123 3,781 35 U.S. liabilities................................................................................. 27,098,591 27,761,250 27,427,614 27,949,313 29,092,840 29,140,849 48,009 1,994,249 36 Liabilities excluding financial derivatives (sum of lines 38, 41, and 56).................... 23,536,606 24,552,898 24,661,899 25,235,860 26,346,551 26,791,113 444,562 2,809,945 37 Financial derivatives other than reserves, gross negative fair value (line 50)............... 3,561,985 3,208,352 2,765,715 2,713,453 2,746,289 2,349,736 -396,553 -815,696   By functional category: 38 Direct investment at market value............................................................ 4,670,942 5,018,930 5,131,714 5,342,443 5,790,551 5,697,603 -92,948 1,119,609 39 Equity..................................................................................... 3,409,913 3,753,276 3,845,433 4,041,326 4,461,978 4,392,752 -69,226 1,052,065 40 Debt instruments........................................................................... 1,261,029 1,265,654 1,286,281 1,301,117 1,328,573 1,304,851 -23,722 67,544 41 Portfolio investment......................................................................... 13,978,875 14,569,596 14,432,860 14,882,136 15,503,192 15,902,746 399,554 1,524,317 42 Equity and investment fund shares.......................................................... 4,545,371 5,000,428 5,076,621 5,376,543 5,821,487 5,993,658 172,171 1,276,116 43 Debt securities............................................................................ 9,433,504 9,569,168 9,356,239 9,505,593 9,681,705 9,909,088 227,383 248,201 44 Short term............................................................................... 844,743 914,503 882,452 829,577 892,655 903,512 10,857 47,912 45 Treasury bills and certificates........................................................ 661,654 720,235 675,367 645,114 686,036 688,859 2,823 24,382 46 Other short-term securities............................................................ 183,089 194,268 207,085 184,463 206,619 214,653 8,034 23,530 47 Long term................................................................................ 8,588,761 8,654,665 8,473,787 8,676,016 8,789,050 9,005,576 216,526 200,289 48 Treasury bonds and notes............................................................... 4,909,828 5,001,076 4,919,659 5,009,541 5,108,856 5,262,440 153,584 199,028 49 Other long-term securities............................................................. 3,678,933 3,653,589 3,554,128 3,666,475 3,680,194 3,743,136 62,942 1,261 50 Financial derivatives other than reserves, gross negative fair value......................... 3,561,985 3,208,352 2,765,715 2,713,453 2,746,289 2,349,736 -396,553 -815,696 51 Over-the-counter contracts................................................................. 3,527,668 3,173,044 2,717,685 2,667,187 2,709,746 2,316,554 -393,192 -817,922 52 Single-currency interest rate contracts.................................................. 2,912,113 2,563,709 2,152,279 2,114,023 2,142,859 1,802,315 -340,544 -769,254 53 Foreign exchange contracts............................................................... 295,181 300,138 272,150 270,744 290,790 248,263 -42,527 -4,391 54 Other contracts.......................................................................... 320,374 309,197 293,256 282,420 276,097 265,976 -10,121 -44,277 55 Exchange-traded contracts.................................................................. 34,317 35,308 48,030 46,266 36,543 33,182 -3,361 2,226 56 Other investment............................................................................. 4,886,789 4,964,372 5,097,325 5,011,281 5,052,808 5,190,764 137,956 166,019 57 Currency and deposits...................................................................... 2,601,672 2,598,915 2,702,344 2,677,595 2,758,129 2,656,656 -101,473 156,457 58 Loans...................................................................................... 2,090,350 2,168,736 2,193,088 2,138,770 2,095,860 2,319,725 223,865 5,510 59 Insurance technical reserves............................................................... n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 60 Trade credit and advances.................................................................. 140,490 143,776 148,780 140,739 144,433 159,798 15,365 3,943 61 Special drawing rights allocations......................................................... 54,277 52,945 53,113 54,177 54,386 54,585 199 109 p Preliminary r Revised n.a. Not available Note: Details may not add to totals because of rounding. Source: U. S. Bureau of Economic Analysis Table 2. Change in the Yearend U.S. Net International Investment Position [Millions of dollars] Change in position in 2013 Attributable to: Yearend Other changes in position Yearend Line Type of investment position Total Changes in position, 2012 Financial- Exchange- volume and 2013 account Price rate valuation transactions Total changes changes n.i.e./2/ 1 U.S. net international investment position (line 4 less line 35)................................... -4,578,245 -804,751 -370,658 -434,093 (/4/) (/4/) (/4/) -5,382,996 2 Net international investment position excluding financial derivatives (line 5 less line 36).... -4,636,021 -820,521 -372,906 -447,615 -182,734 -231,287 -33,596 -5,456,542 3 Financial derivatives other than reserves, net (line 6 less line 37)/3/........................ 57,776 15,770 2,248 13,522 (/4/) (/4/) (/4/) 73,546 4 U.S. assets...................................................................................... 22,520,346 1,189,497 (/3/) (/3/) (/3/) (/3/) (/3/) 23,709,843 5 Assets excluding financial derivatives (sum of lines 7, 10, 21, and 26)...................... 18,900,585 1,989,423 644,763 1,344,660 1,616,523 -260,451 -11,412 20,890,008 6 Financial derivatives other than reserves, gross positive fair value (line 15)............... 3,619,761 -799,926 (/3/) (/3/) (/3/) (/3/) (/3/) 2,819,835   By functional category: 7 Direct investment at market value............................................................ 5,938,327 1,141,731 408,243 733,488 775,024 -15,791 -25,745 7,080,058 8 Equity..................................................................................... 4,980,979 1,089,023 352,106 736,917 775,024 -15,791 -22,316 6,070,002 9 Debt instruments........................................................................... 957,348 52,708 56,137 -3,429 ..... ..... -3,429 1,010,056 10 Portfolio investment......................................................................... 7,967,014 1,216,046 489,877 726,169 960,123 -237,606 3,652 9,183,060 11 Equity and investment fund shares.......................................................... 5,311,509 1,132,723 275,244 857,479 1,054,948 -209,309 11,840 6,444,232 12 Debt securities............................................................................ 2,655,505 83,323 214,633 -131,310 -94,825 -28,297 -8,188 2,738,828 13 Short term............................................................................... 414,909 31,801 45,373 -13,572 ..... -1,705 -11,866 446,710 14 Long term................................................................................ 2,240,596 51,522 169,260 -117,738 -94,825 -26,591 3,678 2,292,118 15 Financial derivatives other than reserves, gross positive fair value......................... 3,619,761 -799,926 (/3/) (/3/) (/3/) (/3/) (/3/) 2,819,835 16 Over-the-counter contracts................................................................. 3,585,781 -802,734 (/3/) (/3/) (/3/) (/3/) (/3/) 2,783,047 17 Single-currency interest rate contracts.................................................. 2,973,245 -765,553 (/3/) (/3/) (/3/) (/3/) (/3/) 2,207,692 18 Foreign exchange contracts............................................................... 280,217 11,717 (/3/) (/3/) (/3/) (/3/) (/3/) 291,934 19 Other contracts.......................................................................... 332,319 -48,898 (/3/) (/3/) (/3/) (/3/) (/3/) 283,421 20 Exchange-traded contracts.................................................................. 33,980 2,808 (/3/) (/3/) (/3/) (/3/) (/3/) 36,788 21 Other investment............................................................................. 4,422,876 -244,319 -250,260 5,941 ..... -4,740 10,682 4,178,557 22 Currency and deposits...................................................................... 2,052,987 -80,838 -115,641 34,803 ..... 798 34,005 1,972,149 23 Loans...................................................................................... 2,314,165 -153,042 -137,978 -15,064 ..... -5,422 -9,642 2,161,123 24 Insurance technical reserves............................................................... n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 25 Trade credit and advances.................................................................. 55,724 -10,438 3,359 -13,797 ..... -116 -13,681 45,286 26 Reserve assets............................................................................... 572,368 -124,035 -3,097 -120,938 -118,624 -2,314 0 448,333 27 Monetary gold.............................................................................. 433,434 -118,459 0 -118,459 -118,459 ..... 0 314,975 28 Special drawing rights..................................................................... 55,050 134 22 112 ..... 112 0 55,184 29 Reserve position in the International Monetary Fund........................................ 34,161 -3,411 -3,438 27 ..... 27 0 30,750 30 Other reserve assets....................................................................... 49,723 -2,299 319 -2,618 -165 -2,453 0 47,424 31 Currency and deposits.................................................................... 24,933 -4,044 3 -4,047 ..... -567 -3,480 20,889 32 Securities............................................................................... 23,471 -2,035 315 -2,350 -165 -2,079 -106 21,436 33 Financial derivatives.................................................................... ..... ..... ..... ..... ..... ..... ..... ..... 34 Other claims............................................................................. 1,319 3,780 1 3,779 ..... 193 3,586 5,099 35 U.S. liabilities................................................................................. 27,098,591 1,994,249 (/3/) (/3/) (/3/) (/3/) (/3/) 29,092,840 36 Liabilities excluding financial derivatives (sum of lines 38, 41, and 56).................... 23,536,606 2,809,945 1,017,669 1,792,276 1,799,257 -29,164 22,184 26,346,551 37 Financial derivatives other than reserves, gross negative fair value (line 50)............... 3,561,985 -815,696 (/3/) (/3/) (/3/) (/3/) (/3/) 2,746,289   By functional category: 38 Direct investment at market value............................................................ 4,670,942 1,119,609 294,972 824,637 871,100 ..... -46,463 5,790,551 39 Equity..................................................................................... 3,409,913 1,052,065 226,834 825,231 871,100 ..... -45,869 4,461,978 40 Debt instruments........................................................................... 1,261,029 67,544 68,138 -594 ..... ..... -594 1,328,573 41 Portfolio investment......................................................................... 13,978,875 1,524,317 490,943 1,033,374 928,157 -26,306 131,523 15,503,192 42 Equity and investment fund shares.......................................................... 4,545,371 1,276,116 -85,407 1,361,523 1,285,442 0 76,081 5,821,487 43 Debt securities............................................................................ 9,433,504 248,201 576,351 -328,150 -357,28 -26,306 55,441 9,681,705 44 Short term............................................................................... 844,743 47,912 46,718 1,194 ..... 9 1,185 892,655 45 Treasury bills and certificates........................................................ 661,654 24,382 24,382 0 ..... ..... 0 686,036 46 Other short-term securities............................................................ 183,089 23,530 22,336 1,194 ..... 9 1,185 206,619 47 Long term................................................................................ 8,588,761 200,289 529,632 -329,343 -357,285 -26,315 54,257 8,789,050 48 Treasury bonds and notes............................................................... 4,909,828 199,028 406,876 -207,848 -221,130 ..... 13,282 5,108,856 49 Other long-term securities............................................................. 3,678,933 1,261 122,756 -121,495 -136,155 -26,315 40,975 3,680,194 50 Financial derivatives other than reserves, gross negative fair value......................... 3,561,985 -815,696 (/3/) (/3/) (/3/) (/3/) (/3/) 2,746,289 51 Over-the-counter contracts................................................................. 3,527,668 -817,922 (/3/) (/3/) (/3/) (/3/) (/3/) 2,709,746 52 Single-currency interest rate contracts.................................................. 2,912,113 -769,254 (/3/) (/3/) (/3/) (/3/) (/3/) 2,142,859 53 Foreign exchange contracts............................................................... 295,181 -4,391 (/3/) (/3/) (/3/) (/3/) (/3/) 290,790 54 Other contracts.......................................................................... 320,374 -44,277 (/3/) (/3/) (/3/) (/3/) (/3/) 276,097 55 Exchange-traded contracts.................................................................. 34,317 2,226 (/3/) (/3/) (/3/) (/3/) (/3/) 36,543 56 Other investment............................................................................. 4,886,789 166,019 231,753 -65,734 ..... -2,859 -62,875 5,052,808 57 Currency and deposits...................................................................... 2,601,672 156,457 172,286 -15,829 ..... -1,418 -14,412 2,758,129 58 Loans...................................................................................... 2,090,350 5,510 47,606 -42,096 ..... -1,550 -40,546 2,095,860 59 Insurance technical reserves............................................................... n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 60 Trade credit and advances.................................................................. 140,490 3,943 11,861 -7,918 ..... 0 -7,918 144,433 61 Special drawing rights allocations......................................................... 54,277 109 0 109 ..... 109 0 54,386 r Revised n.a. Not available ..... Not applicable 1. Represents gains or losses on foreign-currency-denominated assets and liabilities due to their revaluation at current exchange rates. 2. Includes changes due to year-to-year shifts in the composition of reporting panels and to the incorporation of more comprehensive survey results. Also includes capital gains and losses of direct investment affiliates and changes in positions that cannot be allocated to financial transactions, price changes, or exchange-rate changes. 3. Financial transactions and other changes in financial derivatives positions are available only on a net basis, which is shown on line 3; they are not separately available for gross positive fair values and gross negative fair values of financial derivatives. 4. Data are not separately available for price changes, exchange-rate changes, and changes in volume and valuation not included elsewhere. Note: Details may not add to totals because of rounding. Source: U. S. Bureau of Economic Analysis