Short-term securities holders therefore have no strong need for international diversification.
Corporate bond issues are sold on a European scale and government bonds are becoming more easy accessible throughout Europe as a result of integrated trading platforms.21 However, the boom in diversification is limited to large-volume issues of big internationally known companies in the private bond market and to the liquid benchmark bonds in the government bond market.22 Although alliances and mergers are under way equity markets are not fully integrated to date.