We show that international home bias in debt and equity holdings has declined during the late 1990s at the same time as international risk sharing has increased. Using panel data estimations, we demonstrate that less home bias is associated with more international risk sharing. Alternatively, we show that the higher the level of foreign assets to Gross Domestic Product, the more risk sharing is obtained. This indicates that lack of risk sharing and international financial integration are closely related empirical phenomena.JEL Classification: F36