Exclusive: Lessons from the Experian experience

Corporate treasurers can no longer ignore credit default swap buyers because the credit market is increasingly integrated, writes Louise Bowman.

Last night’s decision by noteholders in UK credit reference checking firm Experian’s 2013 bonds to incorporate a change of control coupon step-up clause into the documentation is being hailed in the market as a triumph for CDS investors – and even a shift in the balance of power from bondholders to CDS holders in corporate restructurings. This is the tail wagging the dog, recognition of the increasing importance of the credit derivatives market to corporate fundraising.