Dopey, I believe that this way of melting away bad debt is an off shoot of covered bonds. This way there is no link or supposed exposure to the government.
It is a prime way to bury the Chinese debt problem while hiding it's total value.
I can find no link zero coupon bonds.
However Cbs have plenty of enlightened ways to make debt vanish and if there's a need they will invent the solutiuon. I don't put anything past them.
