An Assortment of Brady Flavors

Article Index

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 An Assortment of Brady Flavors

Par Bonds

  • Registered 30 year bullet amortization issued at par (or at the original face value of the sovereign loan)

  • Fixed rate semi-annual below market coupon (relative to interest rate environment at time of issuance)

  • Rolling interest guarantees from 12 to 18 months (2 to 3 coupon payments) until maturity

  • Generally principal is collateralized by U.S. Treasury zero-coupon bonds

Discount Bonds

  • Registered 30 year bullet amortization issued at discount (or at discount to original face value of sovereign loan)

  • Floating rate semi-annual LIBOR market coupon

  • Rolling interest guarantees from 12 to 18 months ( 2 to 3 coupon payments) until maturity

  • Generally principal is collateralized by U.S. Treasury zero-coupon bonds