|Nothing on the
model bond covenant menu is appealing to
Market practitioners have reacted with scepticism to a set
of model investment-grade bond covenants proposed on June 21 by
a consortium of industry bodies.
The Bond Covenant Group has proposed a framework for the
language of certain bond covenants, designed to eliminate
uncertainty from provisions such as the negative pledge, change
of control and information dissemination clauses.
But issuers and capital markets lawyers insisted that the
necessary information and transparency was already available,
and that investors should perform more thorough due diligence
on contracts before buying the bonds.