Markets
Visualizing Who Holds U.S. Debt Internationally
Visualizing Who Holds U.S. Debt Internationally
We recommend viewing the full-size version of today’s infographic by clicking here.
Everyone knows that the U.S. Federal Government has roughly $20 trillion of debt. A question we often get, however, is who exactly owns all these treasuries? And if it’s held abroad by countries like China, what portion do they hold?
Today’s infographic comes from TitleMax, and it looks at who owns U.S. debt internationally, as well as the debt from other countries that is held by the U.S.
Who Holds U.S. Debt?
Federal government debt in the United States can be broadly placed in two categories: “Debt held by the public” and “Intragovernmental debt”. The former category includes securities held by individual investors, corporations, local and state governments, the Federal Reserve, and foreign governments.
Meanwhile, intragovernmental debt includes securities held in accounts administered by other federal authorities. This category, for example, would include treasuries owed to the Social Security Trust Fund.
Here’s the tallies of these two categories as of December 2016:
Federal U.S. Debt (Billions) | |
---|---|
Debt held by the public | $14,202.1 |
Intragovernmental debt | $5,395.7 |
Total debt | $19,597.8 |
Debt Held By the Public
“Debt held by the public” is the most interesting of these, and it can be further broken down:
Entity | U.S. Debt Held (Billions) |
---|---|
Foreign/International | $6,154.9 |
Federal Reserve* | $2,490.6 |
Mutual Funds | $1,524.8 |
State and Local Gov'ts (incl. pensions) | $899.4 |
Banks | $620.3 |
Private pension funds | $549.1 |
Insurance Companies | $344.8 |
U.S. Savings Bonds | $165.8 |
Other | $1,449.1 |
*Note: Data for Fed is for marketable securities only. All data in this table from September 2016.
About 43% of all debt held by the public is actually owned by foreign governments, corporations, and individuals.
U.S. Debt Held Internationally
Here’s how that breaks down by country:
Country | U.S. Debt Held (Billions) |
---|---|
Japan | $1,090.8 |
China | $1,058.4 |
Ireland | $288.2 |
Cayman Islands | $263.5 |
Brazil | $259.2 |
Switzerland | $229.9 |
Luxembourg | $223.4 |
United Kingdom | $217.1 |
Hong Kong | $191.4 |
Taiwan | $189.3 |
India | $118.2 |
Saudi Arabia | $102.8 |
Others | $1,771.7 |
Note: This data is from December 2016
Markets
The European Stock Market: Attractive Valuations Offer Opportunities
On average, the European stock market has valuations that are nearly 50% lower than U.S. valuations. But how can you access the market?
European Stock Market: Attractive Valuations Offer Opportunities
Europe is known for some established brands, from L’Oréal to Louis Vuitton. However, the European stock market offers additional opportunities that may be lesser known.
The above infographic, sponsored by STOXX, outlines why investors may want to consider European stocks.
Attractive Valuations
Compared to most North American and Asian markets, European stocks offer lower or comparable valuations.
Index | Price-to-Earnings Ratio | Price-to-Book Ratio |
---|---|---|
EURO STOXX 50 | 14.9 | 2.2 |
STOXX Europe 600 | 14.4 | 2 |
U.S. | 25.9 | 4.7 |
Canada | 16.1 | 1.8 |
Japan | 15.4 | 1.6 |
Asia Pacific ex. China | 17.1 | 1.8 |
Data as of February 29, 2024. See graphic for full index names. Ratios based on trailing 12 month financials. The price to earnings ratio excludes companies with negative earnings.
On average, European valuations are nearly 50% lower than U.S. valuations, potentially offering an affordable entry point for investors.
Research also shows that lower price ratios have historically led to higher long-term returns.
Market Movements Not Closely Connected
Over the last decade, the European stock market had low-to-moderate correlation with North American and Asian equities.
The below chart shows correlations from February 2014 to February 2024. A value closer to zero indicates low correlation, while a value of one would indicate that two regions are moving in perfect unison.
EURO STOXX 50 | STOXX EUROPE 600 | U.S. | Canada | Japan | Asia Pacific ex. China |
|
---|---|---|---|---|---|---|
EURO STOXX 50 | 1.00 | 0.97 | 0.55 | 0.67 | 0.24 | 0.43 |
STOXX EUROPE 600 | 1.00 | 0.56 | 0.71 | 0.28 | 0.48 | |
U.S. | 1.00 | 0.73 | 0.12 | 0.25 | ||
Canada | 1.00 | 0.22 | 0.40 | |||
Japan | 1.00 | 0.88 | ||||
Asia Pacific ex. China | 1.00 |
Data is based on daily USD returns.
European equities had relatively independent market movements from North American and Asian markets. One contributing factor could be the differing sector weights in each market. For instance, technology makes up a quarter of the U.S. market, but health care and industrials dominate the broader European market.
Ultimately, European equities can enhance portfolio diversification and have the potential to mitigate risk for investors.
Tracking the Market
For investors interested in European equities, STOXX offers a variety of flagship indices:
Index | Description | Market Cap |
---|---|---|
STOXX Europe 600 | Pan-regional, broad market | €10.5T |
STOXX Developed Europe | Pan-regional, broad-market | €9.9T |
STOXX Europe 600 ESG-X | Pan-regional, broad market, sustainability focus | €9.7T |
STOXX Europe 50 | Pan-regional, blue-chip | €5.1T |
EURO STOXX 50 | Eurozone, blue-chip | €3.5T |
Data is as of February 29, 2024. Market cap is free float, which represents the shares that are readily available for public trading on stock exchanges.
The EURO STOXX 50 tracks the Eurozone’s biggest and most traded companies. It also underlies one of the world’s largest ranges of ETFs and mutual funds. As of November 2023, there were €27.3 billion in ETFs and €23.5B in mutual fund assets under management tracking the index.
“For the past 25 years, the EURO STOXX 50 has served as an accurate, reliable and tradable representation of the Eurozone equity market.”
— Axel Lomholt, General Manager at STOXX
Partnering with STOXX to Track the European Stock Market
Are you interested in European equities? STOXX can be a valuable partner:
- Comprehensive, liquid and investable ecosystem
- European heritage, global reach
- Highly sophisticated customization capabilities
- Open architecture approach to using data
- Close partnerships with clients
- Part of ISS STOXX and Deutsche Börse Group
With a full suite of indices, STOXX can help you benchmark against the European stock market.
Learn how STOXX’s European indices offer liquid and effective market access.
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