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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: gpowell who wrote (54097)	2/17/2006 8:23:20 PM
From: shades	Respond to of 110194

Foreigners Not Showing Preference For GSEs -CEA Official . WASHINGTON (Dow Jones)--There's little evidence to suggest foreign investors are showing a preference for debt issued by government-sponsored enterprises over U.S. Treasury securities, a White House economic official said Thursday. "GSEs are one of the assets that foreign private investors and public investors have been purchasing but .. when we look at the range of assets that the rest of the world is purchasing from the United States, it's a pretty broad portfolio," Matthew Slaughter, a member of the Council of Economic Advisers, told the Joint Economic Committee. Slaughter said the range of assets purchased by foreigners is "pretty evenly" distributed across a number of asset classes, including Treasurys, GSE securities, corporate bonds, equity, and bank loans. Slaughter and his colleague Katherine Baicker were testifying in support of the annual Economic Report of the President, which was released Monday. Rep. Carolyn Maloney, D-N.Y., one of just two lawmakers to question Slaughter and Baicker, expressed concern that foreign purchases of GSE debt could signal a reluctance to continue buying government bonds. Sen. Robert Bennett, R-Utah, asked whether overseas investors were seeking to diversify their purchases, rather than target GSEs as a preference. "I think that's right," Slaughter responded. Earlier Thursday, the Senate Banking Committee approved, by unanimous vote, the nomination of Edward Lazear to join Slaughter and Baicker on the CEA. Lazear will be chairman of the group. -By Henry J. Pulizzi, Dow Jones Newswires; 202-862-9256; henry.pulizzi@dowjones.com (END) Dow Jones Newswires February 16, 2006 13:00 ET (18:00 GMT) Copyright (c) 2006 Dow Jones & Company, Inc.- - 01 00 PM EST 02-16-06