Description of table L.1 - Credit Market Debt Outstanding

This table shows credit market borrowing and lending for all sectors, including domestic financial and nonfinancial sectors, and rest-of-the-world borrowing and lending with these sectors. Credit market borrowing or lending is defined as the transfer of funds between sectors through the following financial instruments: open market paper, Treasury securities, agency- and GSE-backed securities, municipal securities, corporate and foreign bonds, depository institution loans not elsewhere classified, other loans and advances, mortgages, and consumer credit.

For the economy as a whole, total credit market borrowing and total credit market lending are equal to each other. This equilibrium is not the case, however, for individual sectors; in particular, financial institutions are the primary lenders of credit market funds, but they obtain a large portion of their own funding from non-credit-market sources, such as deposits. Domestic nonfinancial sectors, in contrast, are the primary borrowers of credit market funds. It is not possible to match borrowers and lenders for most credit market instruments--for instance, one cannot identify which sectors hold corporate bonds issued by other particular sectors.

Credit market lending or borrowing is different from net lending (+) or net borrowing (-) shown on individual sector tables and in the matrix, which is defined as net acquisition of financial assets less net increase in liabilities.

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