Soon thereafter, the bond offering was withdrawn from the market making it the first such foreign bond offering ever derailed on the U.S. market for primarily national security reasons.
Beijing also has opened the door wider for foreign investors to access the domestic bond market, though Chinese banks and mutual funds still make up the biggest chunk of buyers.
They were among the first to spot a magical opportunity when in 1963 new taxes in the United States led to a collapse in foreign interest in the American international bond market.
That there is so little foreign money in Japan's government-bond market merely reduces the likelihood of panicky sell-offs.
Foreign investment flows into emerging market stocks and bond funds slowed in the week to March 7, according to EPFR Global, a fund tracking service in Cambridge, Mass.
With a compliant Fed and willing foreign bond buyers (largely in Asia), he might be able to stave off the bond market vigilantes throughout his second term, if he is lucky.
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Dusan Mikezic, the state secretary of Serbia's finance ministry, says the government has actively sought out foreign investors through roadshows and visits since opening the bond market to them in 2010.
The only spreads that this foreign exchange market seems comfortable in touting are the periphery bond spreads.
Easier access to the Russian local bond market is expected to result in a gradual increase of foreign investor inflows this year thanks to yield hungry money managers.
So, you may be thinking, you could hedge your U.S. bond portfolio by making a side bet against the dollar in the foreign exchange market.
While it is true that U.S. investment banks and other institutions could make their case on Capitol Hill concerning lost profits if a foreign enterprise's access to, for example, the U.S. bond market was restricted due to proliferation concerns, it is unlikely that there would be a great outpouring of political sympathy for generally well-healed Wall Street players.
Even if its net debt were zero, a government could still foster a liquid bond market by continuing to issue bonds and investing the proceeds in domestic or foreign private-sector assets.
Recent changes to SEC procedures regarding the amount of documentation required from foreign borrowers might also have delayed the process of issuing a bond into the U.S. market, a situation China wanted to avoid.
Firms are being forced to turn to the bond market and thanks to this year's financial deregulation compete with foreign firms to attract capital.
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