The internationalization of markets is an important trend. The U.S. no longer dominates the world stage.
International Bond Market
- Denominated in a foreign currency
- Targeted at a foreign market
- 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.