Spain’s Allure Unsullied by Bond Writedown Clauses: Euro Credit

Spain’s introduction of clauses that make debt restructuring easier is doing little to temper a rally that has pushed borrowing costs to an almost 10-month low.

That’s good news for Prime Minister Mariano Rajoy, who can still afford bond-market funding after last month reasserting his intention to avoid a European Central Bank bailout. Auctions tomorrow, Spain’s first of the year, include a new 2015 note with so-called collective-action clauses, which limit investors’ rights to oppose writedowns.