The internationalization of markets is an important trend.  The U.S. no longer dominates the world stage.

International Bond Market

-Foreign Bonds:

• Denominated in a foreign currency
• Targeted at a foreign market

-Euro Bonds:

• Denominated in one currency, but sold in a different market
• now larger than U.S. corporate bond market)
• Over 80% of new bonds are Euro bonds.

-Euro currency Market:

• Foreign currency deposited outside of home country
• Eurodollars are U.S. dollars deposited, say, London.
• Gives U.S. borrows an alternative source for dollars.