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Bonds traded on the international Bond Market, allowing emerging countries to transform nonperforming debt into Brady Bonds.
Brady Bonds come with a large amount of options complicating the analysis. Brady Bonds are being issued to replace existing government debt. The Bonds' par value is below that of the orginal government debt, however more attractive to investors due to the guarantees attached and the ability to trade the bond on international markets.
Guarantees
Guarantees attached: (not all bonds carry the same or all of those guarantees)
Principal collateral: (expl. to come)
Rolling interest guarantee: (expl. to come)
Value recovering rights: (expl. to come)
Types
Main types:
Par Bonds: (expl. to come)
Discount Bonds: (expl. to come)
Other types:
Front-loaded interest-reduction bonds: (expl. to come)
New-money bonds and debt-conversion bonds: (expl. to come)
Past-due interest bonds: (expl. to come)
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