ISDA Credit Event definitions state that CDS can be triggered in an event of Obligation Acceleration. What does that mean? If for example, a country pays a bond 1 year prior to maturity are CDS triggered?
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There is an example of its use at definedterm.com from a Cemex 2006 Note saying
"Obligation Acceleration" means one or more Obligations in an aggregate amount of not less that the Default Requirement have become due and payable before they would otherwise have been due and payable as a result of, or on the basis of, the occurrence of a default, event of default or other similar condition or event (however described), other than a failure to make any required payment, in respect of a Reference Entity under one or more Obligations.
What this seems to mean (IANAL so this is not legal advice) is that a default or similar event (perhaps of a coupon) may lead to some or all of the amount borrowed becoming repayable earlier than originally planned, i.e. accelerating the obligation
