Search: CAC

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1–6 of 6 collapsed search results for CAC

RBA Glossary definition for CAC

CAC – Collective Action Clause. A clause in bond contracts that includes provisions allowing a qualified majority of lenders to amend key financial terms of the debt contract and bind a minority to accept these new terms.

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Conclusion

31 Dec 2003 RDP 2003-02
Mark Gugiatti and Anthony Richards
believe that the existence or absence of CACs was relevant to the pricing of bonds. ... US investors have come to realise that the use of well-designed CACs is not inconsistent with protection of creditor rights.
https://www.rba.gov.au/publications/rdp/2003/2003-02/conclusion.html

Introduction

31 Dec 2003 RDP 2003-02
Mark Gugiatti and Anthony Richards
This paper adds to the literature on the pricing of CACs in two regards. ... First, it provides an additional test as to the historical pricing of CACs.
https://www.rba.gov.au/publications/rdp/2003/2003-02/introduction.html

Background on Collective Action Clauses

31 Dec 2003 RDP 2003-02
Mark Gugiatti and Anthony Richards
January 1991–January 2003 – US$ billion. Country. CAC governing law. Non-CAC governing law. ... to this (sometimes using CACs), and was viewed as representing a sovereign credit.
https://www.rba.gov.au/publications/rdp/2003/2003-02/background-on-collective-action-clauses.html

Were Collective Action Clauses Priced in Early 2003?

31 Dec 2003 RDP 2003-02
Mark Gugiatti and Anthony Richards
We then included a dummy variable (CAC. i. ) taking the value of unity if the bond includes CACs (based on English governing law). ... We then test whether the impact of CACs might be somewhat dependent upon credit quality by including a term that
https://www.rba.gov.au/publications/rdp/2003/2003-02/were-collective-action-clauses-priced-in-early.html

Did Decisions on Collective Action Clauses on New Issues Affect Secondary Market Spreads?

31 Dec 2003 RDP 2003-02
Mark Gugiatti and Anthony Richards
inclusion of CACs will signal a reduced likelihood of full repayment to bondholders. ... the opponents of CACs – signal a decline (improvement) in the creditworthiness of the borrower.
https://www.rba.gov.au/publications/rdp/2003/2003-02/did-decisions-on-collective-action-clauses-on-new-issues-affect-secondary-market-spreads.html

Do Collective Action Clauses Influence Bond Yields? New Evidence from Emerging Markets

1 Mar 2003 RDP 2003-02
Mark Gugiatti and Anthony Richards
Research Discussion Papers contain the results of economic research within the Reserve Bank
https://www.rba.gov.au/publications/rdp/2003/2003-02.html