Improving Market Standards in the Sterling and Euro Fixed Income Credit Markets - ACT Response

Group of 26 Investors' Consultation(6 October 2003)

A working group of major bond-market investors has launched an initiative to standardise bond market documentation and to improve understanding between issuers and investors.

Major issues they raise are:

• Minimum covenants for corporate issuers
• Issuer call options
• More rigorous documentation standards
• Improved disclosure
• More widespread use of ratings
• A focus on secondary markets

The working group asked that the Association of Corporate Treasurers and the Euro-Associations of Corporate Treasurers (through their member organizations) co-ordinate responses of their members to the working group’s proposals.

The ACT established a working group to consider the investors' consultation paper. Based on input from this group and from the ACT's Technical Committee a response was made to the proposals.