Foreign Corporation Bonds
Bonds of business corporations of foreign countries. Various securities dealers in New York City specialize in these issues, maintaining or quoting markets for them in U.S. funds. As the result of post-World War II economic revival in various countries and easing of foreign exchange restrictions, a markedly increased interest in such issues has developed, with advances in market levels. Foreign corporate dollar bonds have been included in debt adjustment plans of various countries effected with U.S. bondholders, including high cash settlements in various cases, thus reestablishing credit standing in conjunction with economic revival and contributing to the increased interest in such extended issues as well as internal corporate bonds.
Flow of funds data of the Board of Governors of the Federal Reserve System indicate that net domestic purchases of foreign bonds were (in billions of dollars) 4.0 in 1978, 3.7 in 1979, 1.2 in 1980, 5.5 in 1981, 6.6 in 1982, 3.1 in 1983, 3.8 in 1984, 3.8 in 1985, 2.6 in 1986, and 6.3 in 1987.
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM. Flow of Funds Accounts, Annual Revisions.