In fact, it is also a myth that securitization through CDOs was an originate-to-distribute model; rather, really speaking, it was an originate-to-distribute-back-to-originators model! This is because almost all CDOs originated came back to sit on the SIVs/conduits sponsored by originating banks themselves !
Besides, for all the overdone fears about systemic risks from the so called unregulated OTC CDSs markets, remarkably orderly and non-disruptive auction-based settlement of CDSs claims in respect of CDSs written on Lehman Bros., Icelandic banks, Fannie Mae and Freddie Mac incontrovertibly attested to the resilience of CDSs markets!