Put structures will provide investors with some protection in the event that interest rates rise sharply but not if the issuer has an unexpected credit event

Is this statement true?

yes… if investor defaults, you try to put the bond, guess what? investor doesn’t have money to buy the bonds.

No. The unexpected credit event does not necessarily mean default and so a put structure still provides some protection.

If the bond issuer defaulted or went bankrupt…then of course a put would be worthless.