US relies more on foreign stock than debt flows, a dollar risk, Deutsche Bank warns

Deutsche Bank warns the U.S. is increasingly funding itself through international equity inflows into companies’ shares rather than via debt investment. The note suggests this shift could make the U.S. dollar “riskier,” implying elevated FX downside risk if flows reverse. While not a policy change, the argument is directionally negative for USD sentiment.

Analysis

Deutsche Bank warns the U.S. is increasingly funding itself through international equity inflows into companies’ shares rather than via debt investment. The note suggests this shift could make the U.S. dollar “riskier,” implying elevated FX downside risk if flows reverse. While not a policy change, the argument is directionally negative for USD sentiment.