What is the current situation regarding the use of CACs?

Since 1 January 2013, bonds issued by euro area governments must include CACs. However, these are currently “double-limb CACs”, which require two separate majorities to approve a change in bond terms: one at the level of each “series” and one at the level of all “series” combined. This means that it is currently easier for holdout investors to block a restructuring by concentrating their investment in a single “series”, compared to a single-limb CAC, where this strategy is not sufficient, as described above.