NEW YORK-Devaluation insurance seems to be the buzz word these days - at least it was early last week at Fitch's Latin America conference. The modish new phrase has market participants grappling for a definition and an answer to what it means for the future of the market.

Overseas Private Investment Corp. (OPIC) presented this in the recently hyped-up AES Tiete transaction (ASR 4/23/01 p.13) - what one source termed as "the deal of the year." While many are still trying to figure out what devaluation insurance is, others are saying it is as noteworthy as the debut of the political risk insurance (PRI) provided by the Multilateral Investment Guarantee Agency (MIGA) in last year's MSF Funding LLC transaction (ASRI 8/14/00 p. 1).

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