Cross-default
A clause under which a breach by the issuer on one debt automatically counts as a breach on this issue too.
How to read the number
It ties all of an issuer's debts into a single knot: the holder of one bond has to watch what happens to somebody else's loans to the same borrower.
When the metric lies
Wordings differ from issue to issue in thresholds and in the list of obligations covered. The clause has to be read in the documentation of the specific series, not taken as a general rule.
Also known as: cross default clause