Brady Bonds

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DEFINITION of '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.

INVESTOPEDIA EXPLAINS 'Brady Bonds'

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

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