Bangkok--19 Dec--Standard & Poor's Foreign purchases of long-term U.S. securities rebounded sharply for the second consecutive month to $118.0 billion, propelled primarily by substantial growth in private investors' demand (net purchases of $96.2 billion in October), according to a report published today by Standard & Poor's. The report, titled "U.S. Credit Comment: Rebound In Foreign Inflows May Be Fleeting (Premium)," says that net official purchases of U.S. long-term securities, however, edged down to $21.8 billion from $25.8 in September. "The prevalence of credit market disruption in November and early December has probably reduced the flow of capital into the corporate bond market, as foreigners move to the safety of Treasuries or diversify away from U.S. markets," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. "A continued trend in dollar depreciation will affect the fixed-income market by slowing the influx of foreign capital, because foreign investors will be weary of currency-related losses. However, if the dollar appears to bottom out, foreigners may find U.S. assets a bargain. We expect plenty of volatility in capital movements over the next few quarters, but foreign demand for 2008 should be fairly in line with the expected decrease in the current account deficit." The report is available to RatingsDirect subscribers who have upgraded their package to include the Global Fixed Income Research add-on. RatingsDirect is the real-time Web-based source for Standard & Poor's credit ratings, research, and risk analysis, at www.ratingsdirect.com. If you are not a RatingsDirect subscriber with the Global Fixed Income Research add-on, please contact your local Standard & Poor's representative or [email protected] for further information. Ratings information can also be found on Standard & Poor's public Web site at www.standardandpoors.com; under Credit Ratings in the left navigation bar, select Find a Rating, then Credit Ratings Search. Members of the media may request a copy of this report by contacting the media representative provided.