US continues to pile up positive net investment income, despite a net -$7tn investment position. This positive income in light of a large negative NIIP position is a striking contrast to other countries, such as Germany or in Japan.



Indeed, income has continued to grow. One crucial reason has been the US still enjoys significantly higher direct investment returns overseas than do foreigners in the US, which has been a persistent feature in the data, says Bank of America.



Meanwhile, portfolio income has generally shown a more even performance. Still, the US has also benefited from net returns to equity markets given its riskier portfolio of assets, although the degree of riskiness has diminished a bit in more recent data.



There is much concern, however, about whether the peculiar nature of strong income and relatively high indebtedness will continue, but relatively robust returns and US outperformance has persisted over the years.