The Most Controversial Credit Event That May Be Included in a Credit

The most controversial credit event that may be included in a credit derivative product is restructuring of an obligation. A restructuring occurs when the terms of the obligation are altered so as to make the new terms less attractive to the debt holder than the original terms. Term that can be changed are a ________.

A) reduction in the interest rate and a reduction in the principal.
B) rescheduling of the principal repayment schedule and a reduction in the principal.
C) change in the level of seniority of the obligation in the reference entity's debt structure and a reduction in the interest rate.
D) All of these