NFA is the value of the assets that a nation owns abroad minus the value of domestic assets owned by foreigners. “The higher the NFA-GDP ratio, the less vulnerable a nation is when global funds move out,” First Securities Investment fixed-income assistant manager Cash Huang (黃子祐) told a media conference in Taipei. The IMF has assigned great importance to NFA positions when assessing a nation’s wealth, Huang said. Based on the criteria, oil-rich Kuwait outperforms other economies with an NFA-GDP ratio of 549 percent, followed by Hong Kong (357 percent) and the United Arab Emirates (270 percent), he said. Huang compared bond purchases to lending, saying that credit profiles should sit atop an investor’s list of concerns.

Source: Taipei Times November 04, 2019 15:58 UTC