put structures will provide investors with some protection in the event that interest rate rise sharply but not if the issuer has an unexpected credit event…
i am not sure about this statement and i found the following:
https://www.analystforum.com/forums/cfa-forums/cfa-level-iii-forum/91332900
i think the last comments from TimeTravel make sense, he posted:"
All credit events are defaults but NOT all defaults are bankruptcy.
A credit event could be something as simple as missing out on a key ratio on the bond indenture while the issuer can still meet its interest and principal pmt obligaton. This would trigger a technical default. A put structure written on this technicality would offer some protection."
what do you guys think?