The kind of debt that many of these funds hold, known as Brady bonds, fell to the lowest level in three years.

The Brady bonds, however, are more complicated and harder to trade.

Ecuador, in 1999, became the first country to default on its Brady bonds.

Now any political decision you take has an impact on financial instruments, including the value of Brady bonds.

They had to negotiate debt reductions incorporated in the Brady bonds.

Brady bonds rose by 44 percent in 1993.

Investors paid for most of the issue by swapping Brady bonds.

Ecuador has a month to make interest payments before its Brady bonds are technically in default.

Its foreign debt exceeds $13 billion, of which about $6 billion is in Brady bonds.

The Brady bonds accepted in the swap were due in 2001 and 2006.