Brady bonds

Brady Bonds

Bonds that are issued by the governments of developing countries. Brady Bonds are some of the most liquid emerging market securities. They are named after former U.S. Treasury Secretary Nicholas Brady, who sponsored the effort to restructure emerging market debt instruments.

Notes:

The price movements of Brady Bonds provides an accurate indication of market sentiment toward developing nations. Most issuers are Latin American countries.

See also: Bond, Junk Bond

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Brady bonds

Bonds issued by emerging countries under a debt reduction plan.

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Brady bonds

Dollar-denominated bonds of developing countries backed by zero-coupon U.S. Treasury securities. Although no longer in use, Brady bonds were issued in exchange for defaulted commercial bank loans.