The repackaging and selling of debt isn't an issue in and of itself. During the housing crisis didn't start because the debt was being resold, that's actually a positive thing. It allows firms looking to invest to buy large blocks of an asset with a return from interest and a rating for risk.

The problem with the housing crisis was that the ratings agencies were committing fraud and so where the banks.

The ratings agencies were simply labeling too much risky debt as non risky.

While, the banks were committing their own fraud by taking less than triple AAA debt, packaging it together, and then saying that if you buy pools of B debts, because they are separate pools you are de-risking, so different B-rated debt pools should be rated as AAA because they are "de-risked".

So in this case as long as the ratings aren't fraudulent, the risk is properly stated and understood, then repackaging and selling is fine.

The second piece, which was really where the problem became "too big to fail" was that each one of these debt packages were doing resold through insurances 10 to 100x, so the total outstanding liability was not the original debt, but something like 100x the actual debt.

Again, if that isn't the case here, then any debt holders will just have to deal with whatever defaults occur, but if hey are PE and hedge fund firms that own half of that debt, this won't be felt across the broader economy.