American investors held a record $4.03 trillion in foreign debt securities at the end of 2025, highlighting the growing role of US capital in financing governments and businesses across international markets.
Data released by the US Department of the Treasury on October 30, 2026, showed that American holdings of foreign bonds and other debt instruments increased by nearly $300 billion from the previous year.
The investments cover debt securities issued by foreign governments and companies, which raise funds through international markets in exchange for agreed interest payments and repayment obligations.
Unlike direct government loans, these investments involve American investors purchasing bonds and other financial instruments issued by foreign borrowers.
Canada, UK and Cayman Islands Lead Foreign Debt Holdings
Canada accounted for the largest share of foreign debt securities held by American investors, with investments valued at $606 billion at the end of 2025.
The Cayman Islands followed with $566 billion, while the United Kingdom recorded $465 billion. France, Japan and Australia also featured among the major destinations for US debt investments.
The Cayman Islands’ substantial position reflects its importance as an international financial centre, where investment funds and companies register securities that may finance business activities across different countries.
The figures highlight the geographical reach of American capital and the importance of international bond markets in financing governments and businesses.
China Holds More US Debt Than Americans Hold in Chinese Bonds
China’s financial relationship with the United States reflects significant investment in both directions, although the value of the holdings differs considerably.
According to US Treasury records, China held approximately $684.4 billion in US government debt at the end of 2025, while American investors owned about $18 billion in Chinese debt securities.
The difference illustrates China’s much larger exposure to US government bonds compared with American investments in Chinese bonds.
However, when company shares are included, total American portfolio investments in mainland China reached $318 billion, indicating that US investment in the Chinese market extends beyond debt securities.
South Africa, Egypt and Nigeria Record $37.78bn in US Holdings
African economies also recorded substantial investments from American investors, with South Africa, Egypt and Nigeria accounting for a combined $37.78 billion in US-held debt securities at the end of 2025.
The figure represented an increase from $26.49 billion recorded in 2024, translating into a 42.6 per cent rise within one year.
South Africa accounted for the largest share, with $21.22 billion in debt securities held by American investors. This included $19.98 billion in long-term bonds and $1.24 billion in short-term instruments.
Egypt followed with $9.64 billion, comprising $7.91 billion in long-term debt and $1.73 billion in short-term securities.
Nigeria recorded $6.92 billion, including $4.73 billion in long-term debt securities and $2.19 billion in short-term instruments.
The combined increase of $11.29 billion across the three African economies highlights their growing presence in international debt investment markets.
Saudi Arabia, UAE and Israel Attract $50.66bn
American investors also held significant debt securities issued by countries in the Middle East, with Israel, the United Arab Emirates (UAE) and Saudi Arabia recording a combined $50.66 billion at the end of 2025.
Israel accounted for $18.24 billion, while the UAE recorded $16.94 billion, comprising $12.11 billion in long-term debt and $4.83 billion in short-term securities.
Saudi Arabia recorded $15.48 billion in American-held debt securities, including $14.30 billion in long-term bonds and $1.18 billion in short-term instruments.
The figures demonstrate the participation of Middle Eastern economies in international debt markets and their access to foreign investment capital.
US Overseas Portfolio Investments Reach $19.26tn
Beyond debt securities, the Treasury survey showed that total American overseas portfolio investments climbed to $19.26 trillion at the end of 2025, compared with $15.82 trillion in 2024.
Foreign company shares accounted for the largest portion, valued at $15.23 trillion, while bonds and other debt securities represented $4.03 trillion.
The survey was prepared jointly by the US Department of the Treasury, the Federal Reserve Bank of New York and the Federal Reserve Board.
The figures measure investments at market value, meaning changes in the reported totals may reflect fluctuations in security prices and exchange rates, as well as purchases and sales by investors.
The findings provide an overview of the scale of American investment in international financial markets and the role of foreign debt securities in financing economies across Africa, Europe, Asia and the Middle East.
Discover more from LN247
Subscribe to get the latest posts sent to your email.
