In hindsight, we can say that the financial sector had become too complex and non-transparent. Technological advances had created various new financial products and instruments whose risks were often unclear. This particularly held for products and instruments involving the packaging and repackaging of exposures, the sale of CDOs (Collateralized Debt Obligations) and CDO2s, and the use of SIVs (Structured Investment Vehicles).
This would further increase and add transparency to the loss-absorbing capacity of banks. 2  BIS central bankers’ speeches  Secondly, clear contractual terms of what would trigger the bail-in would facilitate the creation of a market for such instruments.