Brady bonds

Brady bonds,

Definition of Brady bonds:

  1. Brady bonds are sovereign debt securities, denominated in U.S. dollars (USD), issued by developing countries and backed by U.S. Treasury bonds.

  2. Long-term bonds representing debt owed by developing countries to international banks. These dollar-denominated bonds are named after Nicholas Brady (born 1939), US Treasury secretary in the George Bush administration (1989-93), who promoted their use in debt restructuring.

  3. Brady bonds are some of the most liquid emerging market securities. The bonds are named after former U.S. Treasury Secretary Nicholas Brady, who sponsored the effort to restructure emerging market debt of, mainly, Latin American countries. The price movements of Brady bonds provide an accurate indication of market sentiment toward developing nations.

How to use Brady bonds in a sentence?

  1. Brady bonds encourage investments and assure bondholders of timely payments of interest and principal since they are backed by the purchase of U.S. Treasuries.
  2. Brady bonds were first announced in 1989 as part of the Brady plan, named for then U.S. Treasury Secretary Nicholas Brady, which was introduced to help restructure the debt of developing countries.
  3. Brady bonds are sovereign debt securities, denominated in U.S. dollars (USD), issued by developing countries and backed by U.S. Treasury bonds.

Meaning of Brady bonds & Brady bonds Definition