CDS market is a credit default swap market. CDS is a kind of contract, the full name is credit default swap, which means credit default contract. CDS is a fairly common financial derivative in the United States, which was first created in 1995. CDS is equivalent to a kind of insurance of creditor's rights: company a borrows money from bank b, and b earns interest from it; But if A goes bankrupt, B may not even be able to protect the principal. So the financial company C provides insurance for B, and B pays the premium to C every year. If A goes bankrupt, Company C guarantees the principal of Bank B; If A pays back on time, B's premium becomes C's profit. But there is a hidden concern about the big problem. The main reason is that this kind of transaction is not regulated by any stock exchange, and it is directly traded between counterparties, which is called OTC. That is to say, at the initial transaction of CDS, there is no mechanism check to ensure that C has sufficient reserve. This method has gradually become popular among brokers, insurance companies, social security funds and hedge funds. In recent years, the reference of this derivative tool has been extended to interest rate, stock index, weather, oil price and so on. , gave birth to the interest rate swap (IRS) market and the equity default swap (EDS) market. At the same time, the original purpose of risk diversification has been replaced by high-risk gambling.

MBS is the earliest asset securitization product. It was first produced in the United States in the 1960s. It is an asset securitization commodity, which is mainly issued by American professional housing banks and savings institutions with their mortgage loans. Its basic structure is to pool the loans that meet certain conditions in mortgage loans to form a mortgage pool, and use the regular cash flow of principal and interest in the loan pool to issue securities, which are guaranteed by government agencies or financial institutions with government background. Therefore, America's MBS is actually a kind of securitized goods, with a strong color of public finance policy.

There is no direct relationship between them, but they are the main financial derivatives that caused the 2008 financial crisis. Bear Si Tong and Lehman Brothers went bankrupt because of ABS and MBS, and AIG was acquired by the government because of the huge CDS of the above companies. The year before last and the year before last, MBS and CDS were introduced in China respectively. The sustained development of these derivatives should attract investors' attention.