B-Strips were first created in 1993 to transform illiquid emerging market loans into transparent tradable securities. In 1996, the B-Strips concept was expanded to encompass complex sovereign bonds, namely, the $165 billion universe of Brady bonds. Approximately $1.3 billion of B-Strips, in relation to underlying loans and bonds, have been issued since 1993, with a current outstanding of close to $1 billion. B-Strips have significantly improved the liquidity of underlying assets and similarly have standardized various complex techniques for stripping Brady bonds into a straightforward process. Depositary receipts are issued for the relevant interest and principal payments underlying the assets. This allows both investors and dealers to tailor cashflows from a variety of issuers to meet their specific investment objectives or hedging requirements. B-Strips are non-proprietary to maximize liquidity and eliminate market fragmentation.

Current B-Strips programs include:

CBN (Central Bank of Nigeria) U.S. Dollar Note Depositary Receipts

Brady Bond strips for:
Brazil Discount
Brazil Par
Brazil Global ‘27
Bulgaria Discount
Mexico ‘16
Mexico ‘26
Nigeria Par
Venezuela Global ‘27

For more information on the current depositary receipt programs, or to inquire about the creation of other programs, please contact IAT.

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