15-44 Some LDCs have begun to sell sovereign bonds for the purpose of repurchasing their own Brady bonds because they benefit from not having to pledge U.S.Treasury bonds as collateral.

Question

Quizplus · Accepted Answer

LDCs selling sovereign bonds to repurchase their own Brady bonds is a real phenomenon, and one reason why they benefit from this strategy is they don't have to pledge US Treasury bonds as collateral for their new bonds.

15-44 Some LDCs Have Begun to Sell Sovereign Bonds for the Purpose