What is Brady Bonds?

Legal Definition
Brady bonds are dollar-denominated bonds, issued mostly by Latin American countries in the late 1980s. The bonds were named after U.S. Treasury Secretary Nicholas Brady, who proposed a novel debt-reduction agreement for developing countries.
-- Wikipedia
Legal Definition
An emerging market BOND resulting from an exchange of rescheduled sovereign DEBT, named after former US Treasury Secretary Brady. Brady bonds, which were developed for a number of LESSER DEVELOPED COUNTRIES in the late 1980s and early 1990s, liquefied NONPERFORMING LOANS held by large BANKS, and have become actively traded in the SECONDARY MARKETS. Securities are collateralized by 30year ZERO COUPON TREASURY BONDS (guaranteeing PRINCIPAL repayment) and a rolling GUARANTEE from the INTERNATIONAL MONETARY FUND (covering interest COUPONS).
Legal Definition
U.S. dollar-denominated bond issued by an emerging market, particularly those in Latin America, and collateralized by U.S. Treasury zero-coupon bonds. Brady bonds arose from an effort in the 1980s to reduce the debt held by less-developed countries that were frequently defaulting on loans.