Laying down the law

The debate surrounding the publication of market reform proposals by a group of leading bondholders – the so-called Group of 26 – is hotting up. Issuers have reacted negatively to what has in effect amounted to a series of ultimatums. Laurence Neville reports

The comfortable world of the sterling and euro market has been stirred up followingthe publication last October of reform proposals by 26 leading bondholders, dubbedthe Group of 26. Privately, some issuers and investment banks are seething, andwarn of the dire consequences of the proposals. Publicly, even some investorsare questioning whether they have any chance of success.

The debate erupted most pertinently at the Houses of Parliament in London, where JPMorgan held an event at the end of