JPMorgan Chase, Deutsche Bank and Credit Suisse are developing a template for credit default swaps on covered bonds. Antoine Cornut of Deutsche Bank explained that the dealers wanted to develop a standardized form of contract to bolster liquidity. "We didn't want to draw up a bespoke agreement each time. With changing regulation, it seems like a natural progression," Cornut said. The CDS are intended for investors who want to hedge spread volatility in the market.