international financial instruments

Tremendous growth has occurred in international financial instruments in recent years. for the most part, the financial instruments traded in international markets function like the instruments issued in the U.S. the only difference is that the unit of account for these instruments is the local currency of the country in which they are issued. for instance, bonds issued in Britain are denominated in British pounds, while bonds issued in Germany are issued in German marks. Both are foreign bonds to U.S. residents.Eurobonds are an important exception. Eurobonds are bonds denominated in a currency other than that of the country of origin. for example, a bond issued in Germany but denominated (paying interest and its face value) in U.S. dollars is a Eurobond.
The recent surge in activity in world stock and bond markets has broadened the possibilities for investors and borrowers alike. A borrower no longer has to obtain funds from financial intermediaries in his or her own country;similarly, a lender need not to borrowers in its own country.
Because of time differences across the globe (when it is 4 A.M. in New York,it is 9 A.m. in London) international markets allow borrowers and lender to make financial transactions at virtually any time of day. This fact has greatly enhanced the liquidity of financial assets that trade on exchanges around the world.