Definitions for "Brady Bonds"
Public-issue, US dollar denominated bonds of developing countries.
Named for former U.S. Treasury Secretary Nicholas Brady, Brady bonds were created to alleviate Latin America`s debt crisis in the 1980s. Under the Brady plan, creditor banks exchanged existing bonds for new bonds with lower face value but with principal backed by U.S. Treasury bonds.
Securities issued by foreign governments as part of a debt-restructuring program initiated by former U.S. Treasury Secretary Nicholas Brady.