French debt is one of the most internationalized in the world

Posted on Feb 12, 2019 2021 at 7:59Updated Feb 12, 2019 2021 at 8:04

When investors hold debt securities of a country other than their own, it is most often American debt. What is less known is that the French debt is, behind that of the United States, the second most internationalized debt in the world. It represents a little more than 8% of the commitments listed in the external positions of the world, against 35% for the United States, reveals a study published in the bulletin of the Banque de France on Friday. Next, neck and neck come the United Kingdom (8%), then Germany (6%) and Japan (5%).

The weight of the various debts in the portfolios of international investors does not exactly correspond to the volumes issued on the markets. If the US debt dominates both in terms of volumes issued – it represented 39% of global debt in June 2019 – and presence in the assets of non-residents, on the other hand France is the fifth country issuing debt securities (5% of global debt).

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