Portfolio investments, 3rd quarter 2009:

Banks continue borrowing abroad

Swedish portfolio investments created a net capital inflow of SEK 55.9 billion during the third quarter of the year. The inflow was mainly due to new issues of bonds and certificates abroad. In contrast, Swedish investments in foreign shares and securities brought about a capital outflow.

During the third quarter portfolio investments showed similarities to the first two quarters of the year. There were also some differences worth naming. Swedish banks continue to finance their activities by borrowing abroad in the third quarter. Bond issues in foreign currency gave the banks a net inflow totaling SEK 114.6 billion. These issues to a certain extent compensated for the decline in bank certificates. In contrast to the earlier quarters of the year, foreign holdings in bank certificates decreased. There was a total decline of SEK 58.3 billion in bank certificates held abroad.

The central government also increased borrowing abroad during the quarter. The Swedish National Debt Office issued EUR 3 billion in bonds during September. Swedish T-bills also generated significant foreign interest and were net purchased abroad for a total of SEK 35.8 billion during the quarter.

After the last autumn's spike in borrowing in the international currency markets, other sectors' borrowing started up in the early quarters of this year as well. Other sectors, consisting mainly of non-financial corporations, increased their borrowing in foreign securities by SEK 49.9 billion in the first and SEK 40.8 billion in the second quarters of the year. This trend declined in the third quarter, when trade in bonds denominated in other currencies produced a net inflow of SEK 8.1 billion.

Swedish investors continue to buy foreign shares

Trade in foreign shares continues to generate large outflows. In the third quarter of the year Swedish investors net purchased SEK 31.8 billion worth of foreign shares. This means that foreign shares were net purchased for a total of SEK 110.3 billion during 2009. Swedish investors net purchased shares from England and the USA for SEK 12.5 and SEK 4.1, respectively. English shares have proven popular throughout the year, which together with Norwegian shares were net purchased to the greatest extent.

Foreign interest in Swedish shares has increased distinctly in the third quarter compared to the earlier quarters of the year. Foreign investors net purchased SEK 6.4 billion worth of Swedish shares, which can be compared to SEK 2.8 billion in the first quarter and SEK 3.7 billion in the second quarter of the year. The quarter's most popular purchased shares were Nordea, MTG and SEB. Ericsson was sold more than any other.