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Having a voluntary deal is important because imposing losses on banks can trigger massive bond insurance payments that risk creating huge turmoil on global financial markets.
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One of this biggest missteps in all of the bailouts and resulting watered down "regulation" to come about in the wake of the financial crisis is the fact that credit default swaps and other derivatives were never reigned in, limited, or regulated in any meaningful way. They were one of the prime enablers of the crisis and why that's never been addressed is beyond me.
A credit default swap is intended to mitigate credit risk on an underlying asset. If a credit event is triggered, and the insurance is forced to pay, this is the product working
exactly as it is designed to do. If the product working exactly as it's intended to would cause financial turmoil, there's a problem with the product.