Sir has taught (& also mentioned in schweser notes) that credit event is when entity defaults on any issue that is ranked pari passu (same rank) or higher rank .
But in institute MCQ number 3 of UNAB corporation (new pg 42 of ssei text book) answer is given that default on any obligation (i.e, even lower ranking debt) is considered as credit event.
Can somebody please throw some light on this inconsistency.🙏🏻
In a later class, sir had corrected it saying that a failure to pay in any bond- senior, junior, or pari-passu, will be considered a credit event.
You can refer back to the cross-default provision taught in CFA Level 1, which stated that default for any bond will automatically be considered a default for all the bonds.
Hope this helps!