Who owns America’s debt? refers to the various entities that hold United States Treasury securities, which represent the national debt. These entities include:
- Foreign governments and central banks: They hold the largest share of U.S. debt, accounting for about 30% of the total.
- Mutual funds and ETFs: These investment vehicles hold U.S. Treasury securities on behalf of their investors.
- Pension funds: They invest in U.S. debt to provide retirement benefits for their members.
- Insurance companies: They hold U.S. debt as part of their investment portfolios.
- Banks and other financial institutions: They hold U.S. debt for various purposes, such as liquidity management and regulatory compliance.
- U.S. citizens and residents: They hold U.S. debt directly or indirectly through mutual funds, ETFs, and other investments.
The composition of America’s debt holders has changed over time, with foreign governments and central banks becoming more significant holders in recent years. The U.S. government’s ability to borrow at low interest rates is influenced by the demand for its debt from these entities.