Both the securities markets and the institutions that operate in them have increased in importance. They are developing new instruments such as the note issuance facility which blend some of the features of bank loans and bonds and which increase the marketability of international assets and therefore their liquidity. At the same time banks are re-appraising their relationship with developing countries. Banks that wish to continue significant international lending are tending to focus their operations on these innovations, which reduce some of the risks associated with more traditional lending. These changes may indicate a trend toward the securitization of international lending, which could have significant implications for the future nature of private lending to developing countries.