International portfolio flows in the post-global financial crisis period

抄録

This paper focuses on gross international capital flows and analyzes how their scale and structure changed before and after the global financial crisis. Evidence clearly shows that inflows and outflows of international capital rapidly increased before the financial crisis, expanding both foreign assets and liabilities, but after the financial crisis each experienced a dramatic decline. Our analysis of the Coordinated Portfolio Investment Survey leads to three key observations: (1) global securities investors generally turn risk averse in the wake of financial crises and reduce allocations to stocks but increase investments in long-term bonds; (2) European investors have tried to repatriate capital from overseas investment destinations, but US foreign securities investments have not recovered to the pre-crisis levels until recently; and (3) the resulting vacuum this has created offers an opportunity for Japanese investors to join the European and US investors as global suppliers of risk capital.