Portfolio investments november 2005

Reduction in investment in Swedish securities led to capital outflow Cross-border portfolio investment generated a net outflow of SEK 3.4 billion during November 2005. The outflow during this period was largely attributable to a decline in foreign holdings of Swedish securities. Trade in debt securities caused a net outflow of SEK 3.1 billion, while equity securities trading led to a marginal outflow. Foreign investment in Swedish debt securities generated a net outflow of SEK 3.1 billion in November. Holdings of securities denominated in foreign currency declined, while foreign investors’ holdings of SEK-denominated securities increased. New issues by Swedish banks and mortgage institutions abroad contributed to an increase in foreign investors’ holdings of SEK-denominated money market instruments of SEK 19.2 billion. At the same time, redemption of bonds denominated in foreign currency reaching maturity contributed to a net outflow of SEK 31.6 billion. With regard to foreign investment in Swedish SEK-denominated securities, the situation was reversed. Foreign investors’ purchases of SEK-denominated government bonds amounted to over SEK 26 billion, while sales of short-term government bonds amounted to almost SEK 17 billion. The repo statistics during the period indicate that at least bond purchases were largely financed on the repo market. Swedish investors’ purchase and sale of foreign debt securities generated a net outflow of SEK 0.1 billion. Holdings of SEK-denominated securities declined, while holdings in securities denominated in foreign currencies increased.