Collective Action Clauses: Argentina, Ecuador, and their future

In a major enhancement of the sovereign debt restructuring process, the G20 and IMF in 2014 endorsed collective action clauses (CACs) developed by the International Capital Market Association, including a “single limb” clause which would potentially allow all creditors to be bound into a restructuring in a single vote. However, the “single limb” clause was not used in the Argentinian and Ecuadorian restructurings. Mark Sobel is joined by a panel of speakers to discuss why, and what this means for the future of the “single limb”.