The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.

Stony silence in Mexican Brady market

On a late-January afternoon, a group of settlements clerks, Brady bond traders, inter-dealer brokers, and other footsoldiers of the emerging-markets universe straggled into a small conference room on the 28th floor of JP Morgan Chase in Manhattan.

Michael Chamberlin

They were invited there by the Emerging Markets Traders Association (EMTA) to discuss the trading of Mexican Value Recovery Rights (VRRs). What wasn't said, what didn't need to be said, was that nearly everybody in the room expected the Brady market to be hit by utter chaos in a matter of days.

VRRs are warrants embedded in Mexican Brady bonds which pay out once the price of oil reaches a certain level. Mexico's Brady bonds - like all Bradys - are restructured bank loans, which involved commercial banks granting significant debt relief.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to and analysis and receive expertly-curated updates direct to your inbox.


Already a user?

Login now


We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree