Tag Archives: CACs

Round 2 — Do the Euro CACs Have to be Used if There is a Need to Restructure a Euro Area Sovereign's Debt?

The intriguing question raised by Mark Weidemaier’s superb new paper posted a few weeks ago (here) was whether, if a Euro area country hits a debt crisis, it would be mandatory for it to use the Euro CACs that are … Continue reading

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Euro Area Sovereign Bonds: CACs or no-CACs?

Mitu Gulati and Mark Weidemaier Beginning January 1, 2013, Euro Area authorities required member countries to include “collective action clauses,” or “CACs,” in sovereign bonds with a maturity over one year. CACs are a voting mechanism by which a bondholder … Continue reading

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