abstract:In economics, foreign portfolio investment is the entry of funds into a country where foreigners make purchases in the country’s stock and bond markets, sometimes for speculation.
It's something that permeates the portfolio and, I think, provides really interesting investment opportunities because a lot of the foreign markets are less efficiently priced than those that you find in the U.S.
Companies flooded the big emerging markets with foreign direct investment and portfolio managers bought higher yielding bonds in all four of the BRICs.