what is pari passu 
pari passu is a latin phrase meaning equal footing that describes situations where two or more assets securities creditors or obligations are equally managed without preference an example of pari passu occurs during bankruptcy proceedings when the court reaches a verdict the court regards all creditors equally and the trustee will repay them the same fractional amount as other creditors and at the same time pari passu may describe certain clauses within a variety of financial vehicles such as loans and bonds which are debt instruments issued by companies to raise cash often these clauses are in place to ensure the associated financial product functions as equal to all similar others investopedia nono flores