Hybrid journal (It can contain Open Access articles) ISSN (Print) 1750-7219 - ISSN (Online) 1750-7227 Published by Oxford University Press[370 journals]
Authors:Gulati M. Pages: 123 - 124 Abstract: The Capital Markets Law Journal last year celebrated its 10th anniversary. Better still, it has been growing in readership, citations and the quality of submissions. In order to celebrate this anniversary the editors discussed the possibility of doing a special issue; specifically, an ‘all star’ issue with a combination of the most eminent and interesting voices from practice, policy land and academia. This issue is the outcome of those discussions; it takes as its focus sovereign debt, one of the fields in which CMLJ has been consistently on the cutting edge. PubDate: 2017-04-22 DOI: 10.1093/cmlj/kmx026 Issue No:Vol. 12, No. 2 (2017)
Authors:Manuelides Y. Pages: 125 - 140 Abstract: Key pointsThis article considers the major policy considerations for a GDP-linked bond and some of the challenges in designing an instrument which can address these considerations by focusing on the key provisions of the most recent version of the London Termsheet.The commentary in this article first summarizes some of the policy considerations. Then the payment flows and challenges of using GDP as a reference variable are considered.The article continues with a discussion of the key legal features which could set GDP-linked bonds as a different class to that of fixed-rate bonds and considers the implications. It ends by listing the current work streams. PubDate: 2017-04-21 DOI: 10.1093/cmlj/kmx024 Issue No:Vol. 12, No. 2 (2017)
Authors:Ahmed FZ; Alfaro L. Pages: 141 - 163 Abstract: Key pointsRecent rulings in the ongoing litigation over the pari passu clause in Argentinian sovereign debt instruments have generated considerable controversy. Some official sector participants and academic articles have suggested that the rulings will disrupt or impede future sovereign debt restructurings by encouraging holdout creditors to litigate for full payment instead of participating in negotiated exchange offers.This article critically examines this claim by evaluating market reactions to litigation using an event study methodology. It analyses the effect on sovereign bonds from litigation events, with particular emphasis on Argentina for the period, 1993–2014.The article finds evidence that the market reacts differently to Argentina than to other countries. PubDate: 2017-04-12 DOI: 10.1093/cmlj/kmx017 Issue No:Vol. 12, No. 2 (2017)
Authors:Zandstra D. Pages: 180 - 203 Abstract: Key pointsThe enhanced collective action clauses with an aggregation mechanism published in August 2014 by the International Capital Market Association (Aggregated CACs) together with a revised pari passu clause, for inclusion in English law-governed sovereign bonds, are the culmination of more than 20 years of work in the sovereign debt restructuring space, and represent the latest evolution to address the restructuring challenges faced by sovereigns and their creditors.Building on the existing collective action architecture, the Aggregated CACs equip sovereigns with powerful and flexible tools to tackle the issues that arise from sovereign debt restructurings, while nonetheless protecting creditors with robust safeguards.The enhanced clauses should both facilitate the resolution of sovereign debt crises in an orderly manner and diminish the international financial stability risks posed by large-scale debt crises capable of generating contagion.The clauses represent the culmination of an impressive collaboration between the full spectrum of stakeholders, including the official sector, private sector participants, industry bodies and legal practitioners. In addition to being endorsed by key participants from both the official and private sectors, the clauses have been adopted by sovereigns in the vast majority of new international bond issuances brought to market since their publication.While the Noteholders’ Committee provision also published in August 2014 by the International Capital Market Association has not gained the same traction to date, its publication has underpinned an important dialogue on creditor engagement between the official sector and private sector, which is ongoing. PubDate: 2017-06-30 DOI: 10.1093/cmlj/kmx025 Issue No:Vol. 12, No. 2 (2017)
Authors:Galvis SJ. Pages: 204 - 214 Abstract: Key PointsAs a result of the Argentine sovereign debt crisis and ensuing holdout litigation saga, the pari passu (or ranking) clause became a source of great consternation in the international sovereign bond market.Specifically, Judge Griesa’s holding that Argentina had violated the pari passu clause by refusing to pay creditors who had not participated in the nation’s earlier debt exchanges, and accompanying requirement that Argentina had to pay those holdout bondholders, led to uncertainty in the market regarding the leverage holdouts could exercise in sovereign debt restructurings going forward.Concern was expressed over the ability of sovereigns to succeed with voluntary exchange offers premised on the threat that the restructuring sovereign would default on payments due to non-participating bondholders.This article evaluates the impact of the court’s decision in the Argentine litigation to date and discusses the adoption of improved ranking clauses and collective action voting clauses in recent issuances of sovereign debt in the effort to bring greater certainty to market participants and facilitate efficient restructurings in the future without the need for extra-contractual restructuring mechanisms and remedies. PubDate: 2017-07-07 DOI: 10.1093/cmlj/kmx019 Issue No:Vol. 12, No. 2 (2017)
Authors:Mark WW; Weidemaier CC, Gauthier M. Pages: 215 - 223 Abstract: Key pointsVenezuela is in a severe economic crisis, prompting speculation about default by the government or beleaguered state-owned oil company Petróleos de Venezuela, S.A. (PDVSA).Because the country’s economy is heavily dependent on oil exports, some observers have speculated that it faces a unique risk of holdout litigation by creditors seeking to attach oil-related assets.This essay highlights barriers to such litigation, which will be familiar to corporate lawyers but are often overlooked in discussions of sovereign debt. These barriers derive from corporate law principles of limited liability.Using Venezuela as a case study, this essay explores how principles of limited liability shape the dynamic between a sovereign debtor and its creditors and highlights some unusual aspects of these principles as applied to entities owned or controlled by foreign governments. PubDate: 2017-03-29 DOI: 10.1093/cmlj/kmx020 Issue No:Vol. 12, No. 2 (2017)
Authors:Buchheit LC; Gulati G. Pages: 224 - 238 Abstract: Key pointsThe decade and a half of litigation that followed Argentina’s sovereign bond default in 2001 ended with a great disturbance in the Force. A new creditor weapon had been uncloaked: The prospect of a court injunction requiring the sovereign borrower to pay those creditors that decline to participate in a debt restructuring ratably with any payments made to those creditors that do provide the country with debt relief.For the first time, holdouts succeeded in fashioning a weapon that could be used to injure their erstwhile fellow bondholders, not just the sovereign issuer. Is the availability of this new weapon limited to the aggravated facts of the Argentine default or has it now moved permanently into the creditors’ arsenal' Only time (and future judicial decisions) will tell.In the meantime, however, sovereigns will occasionally find themselves in financial distress and their debts will occasionally need to be restructured. Venezuela already casts this chilly shadow over the sovereign debt market.If, in a galaxy not too far away, sovereign debt workouts are to have any chance of an orderly completion, a method must be found to neutralize this new weapon. Judging by the secondary market prices of different series of Venezuelan sovereign bonds, large amounts of money are being wagered that it cannot be done. PubDate: 2017-04-16 DOI: 10.1093/cmlj/kmx018 Issue No:Vol. 12, No. 2 (2017)
Authors:Stolper AE; Dougherty S. Pages: 239 - 252 Abstract: Key pointsThis article summarizes the current state of documentation for collective action clauses in sovereign debt documentation.In addition, the article summarizes various milestones in the development of collective action clauses beginning after the 2002 Argentina default and compares the collective action clauses of certain sovereigns and sub-sovereigns. PubDate: 2017-04-12 DOI: 10.1093/cmlj/kmx022 Issue No:Vol. 12, No. 2 (2017)
Authors:Grund S. Pages: 253 - 273 Abstract: Key pointsFive years after Greece implemented the biggest sovereign debt restructuring in history, its legal design has been vindicated by European courts and international tribunals. Bondholders have exhausted all potential legal avenues to challenge the debt workout, but Greece and its counsels ultimately held the upper hand.This article sheds light on the most seminal decisions, discussing their implications for possible future restructurings of local law bonds, which continue to be prevalent in Eurozone Member States. While the retroactive insertion of collective action clauses facilitated a relatively smooth Greek debt swap, governments ought to carefully study the recent jurisprudence of European courts, which set important limits to governmental interference with bondholder’s property rights.By mapping three potential future debt restructuring and redenomination scenarios with post-Greece case law, this article strives to provide further clarity to both governments and creditors as regards the legal design of Private Sector Involvement in Europe. PubDate: 2017-04-04 DOI: 10.1093/cmlj/kmx023 Issue No:Vol. 12, No. 2 (2017)
Hybrid journal (It can contain Open Access articles)
[370 journals]
