In the 2008 Lehman crisis, the reason why AIG, an American insurance company, collapsed was that it had issued too many CDSs, and the US Department of the Treasury and the Fed had to bail it out. Consequently, on the financial market, people may turn pale at the mention of the CDS. Will issuing too many CDSs lead to new crisis?
In terms of this instrument we introduced, companies issuing CDSs are fairly reliable. At the same time, the design of the entire support instrument is completely market-oriented, and companies would issue the CDSs and create the instrument jointly with lead underwriters including commercial banks and securities companies. Bond buyers can choose whether to buy the CDSs at their own discretion.