The international bond market issues bonds in a foreign country from where the investor comes. Such a market offers diversification opportunities and risks include currency and political instabilities.
• Euro-bonds: Euro-bond are bonds issued in some other currency rather than of the country issuing the bonds. For example, issuance of a bond in dollars by Japan is a Euro-bond.

• Foreign Bonds: These are domestic country currency bonds issued by a foreign entity. For example, one can include "Yankee bonds," which are the bonds that any foreign company issues in U.S. dollars, in U.S.