CACs can solve the collective action problem for those bonds to which they apply, but the mere fact that a bond contains a CAC does not necessarily mean that a majority of bondholders will vote to offer sufficient debt relief to ensure that the debtor can return to debt sustainability.
Axel A Weber: The global economic crisis and the challenges it poses Introductory remarks by Professor Axel A Weber, President of the Deutsche Bundesbank, at the Morning Plenary Session "The Global Economic Crisis" of the Israeli Presidential Conference 2009, Jerusalem, 22 October 2009.