SOVEREIGN DEBT
CAC
A bond provision allowing a specified majority of holders to agree to restructuring terms binding on all covered holders.
What does it stand for?
Collective Action Clause
What it means
A bond provision allowing a specified majority of holders to agree to restructuring terms binding on all covered holders.
How to interpret it
This concept should be read together with its market convention, measurement horizon and underlying instrument. BondStats presents it as an analytical reference rather than investment advice; instrument documentation and primary market rules remain authoritative.
Related Acronyms
BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.