The phrase "issuer default" means that the company or entity that issued a financial product, like a bond or loan, has failed to fulfill its financial obligations and cannot make the required payments or repay the borrowed money. Full definition
The only exception to the guarantee is if the bond issuer defaults on the payment. (humblefi.com)
The previous post on credit card issuer default rates deliberately avoids the question of ethics in lending. (nostradoofus.com)
Bond funds contain interest rate risk (as interest rates rise bond prices usually fall); the risk of issuer default; issuer credit risk; liquidity risk; and inflation risk. (us.spdrs.com)