Net foreign purchases of U.S. securities soared to nearly $70 billion last October, a record monthly pace, according to Joseph Quinlan, senior international economist at Morgan Stanley. The net foreign purchases consisted of $7.2 billion in equities, $20.3 billion in corporate bonds, $15 billion in Treasuries and $27.3 billion in government agency securities.
"All totaled, net U.S. portfolio inflows in October were the highest on record in our 24-year monthly series, representing a powerful, near-term vote of confidence for the U.S. among foreign investors,” he wrote. Even in September, net foreign purchases totaled $5.3 billion.
"Rather than cripple net inflows, Sept. 11 — and more importantly the events that have transpired in its aftermath — have galvanized foreign investors’ confidence in the U.S.,” Mr. Quinlan wrote in his January report to clients. "Globally, in other words, the U.S. remains the best play around.”
