Brady Bonds
Bonds which originated as syndicated bank credits to developing countries, denominated in major European currencies. During the recession of the early 1980s many developing countries ran out of foreign currency to meet their payments on these loans. To restore confidence in the borrowers, much of this debt was converted at a discount into negotiable bonds backed by the U.S. Treasury under a scheme introduced in 1989 by the then U.S. Treasury Secretary Nicholas Brady.