Business and Personal Finance Dictionary

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• NAKED DOG BASKET
  
  The "Basket" is a portfolio of Brady Bonds that someone issued in exchange for rescheduled debt of certain developing countries. One might suppose that some people consider such a bond to be a "Dog". The "Dog Basket" is "Naked", because the terms of the contract call for stripping the yield on U.S. long bond from the gross return on the portfolio. So the coupon on the "dogs" depends on the "stripped spread" between the long bond rate the the Brady Bond yield. (Described in the Financial Times, 11/16/94, p. V.)
  
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