The problem that will come back to bite us big time, is that the SBD are not being printed because the debt ratio has recovered, but because HF20 allows printing them until the haircut at 10% debt.

Oh ... SBDs are being printed all the way until the haircut limit? That may be a major issue ... a disaster waiting to happen! At the other hand, that would also encourage people to convert or sell SBDs long time before haircut is reached. And, when there is a major push on selling SBDs, arbitrage traders will buy them and convert them.