Greater integration of capital markets and the shift from syndicated bank loans to traded securities have had a profound impact on the way that emerging market sovereigns finance themselves. Sovereigns increasingly issue debt in a range of legal jurisdictions, using a variety of different instruments, to a diverse and diffuse group of creditors. Creditors often have different time horizons for their investments and will respond differently should the sovereign encounter a shock to its debt servicing capacity. This is a positive development: it expands sources of sovereign financing and diversifies risk.