Argentina's creditors count on CACs for protection

Argentina's creditors count on CACs for protection

Bonds Debt Capital Markets Corporate & Sovereign Strategy Economy & Policy Fixed Income Argentina US

If creditors are nervous about another default in Argentina, they can take some comfort in the so-called collective action clauses, or CACs, that theoretically give them more protection than in 2005, when the government agreed to pay only a portion of its offshore bonds, an analyst told LatinFinance. "Creditor power is stronger now than 15 years ago, when the Kirchner administration presented a 'take it or leave it' haircut offer and then we saw the US lawsuits follow," said Stuart Culverhouse,

Already have an account?

Free trial

Take a free two-week trial now for the latest news, data and market analysis.

Free Trial