01761cas a2200253 a 4500 AALejournalIMF020756 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513526843 1018-5941 BD-DhAAL BD-DhAAL Chung, Kay. Do Enhanced Collective Action Clauses Affect Sovereign Borrowing Costs? / Kay Chung, Michael Papaioannou. Washington, D.C. : International Monetary Fund, 2020. 1 online resource (44 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper analyzes the effects of including collective action clauses (CACs) and enhanced CACs in international (nondomestic law-governed) sovereign bonds on sovereigns' borrowing costs, using secondary-market bond yield spreads. Our findings indicate that inclusion of enhanced CACs, introduced in August 2014, is associated with lower borrowing costs for both noninvestment-grade and investment-grade issuers. These results suggest that market participants do not associate the use of CACs and enhanced CACs with borrowers' moral hazard, but instead consider their implied benefits of an orderly and efficient debt resolution process in case of restructuring. Mode of access: Internet Papaioannou, Michael. IMF Working Papers; Working Paper ; No. 2020/162 Full text available on IMF http://elibrary.imf.org/view/journals/001/2020/162/001.2020.issue-162-en.xml IMF e-Library