If there is one thing that emerging-market investors hate as much as SDRM, it is exit consents.
One of the biggest selling points for CACs is that they obviate the need for exit consents, which are pretty much the only way of restructuring bonds now.
Agustín Carstens, Mexico’s undersecretary of finance, says that “we basically have given up the possibility of doing a rescheduling through exit consents”. This is a view shared by the lead managers of Mexico’s new bond, as well as by the country’s lawyers.
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