International debt markets have gone through major changes during the past 20 years. Reduction in capital controls and privatization of the manufacturing and banking sectors created a higher demand for international debt, which is debt denominated in nondomestic currencies, from the private sector. This major change had important consequences. While international debt crises used to be attributed to state mismanagement of borrowed funds, such crises are now largely due to poor performance in the private sector. Yet, corporate debts have several advantages compared with sovereign debts. The chapter begins by discussing new developments and describing the impact on country risk and cost of capital. Next, the chapter explains how these developments affect the international financial architecture by describing the differences between corporate and sovereign debt. International bond issuance and the latest developments are then discussed to explain the impact of these main changes.