“…As pointed out in the above section, the company's default will be subjected to the external shocks and counterparty risk, therefore, inspired by Bai 23 and Leung and Kwork 24 , we will propose a new looping default intensity model with attenuation effects based on the external shocks and contagion effects. Meanwhile, inspired by E.Agliardi, R.Agliardi 19 and Wu, Zhuang 22 , we will introduce the fuzzy analysis into the credit derivatives pricing process, nevertheless, the literatures 19,22 both employed the triangular fuzzy numbers to describe the fuzzy phenomenon, since there is only one membership function, result in the fuzzy phenomenon can only be estimated in two kinds of state: the possible degree and impossible degree, and can not reflect the degree of hesitation in the fuzzy phenomenon, but hesitation in the pricing process or in the market is objective existence, becomes an another important influence factor in the pricing process of the credit derivatives, such as the application of hesitation in product design can be found in Dou, Zong and Li 25 . However, for the triangular intuitionistic fuzzy numbers, there are membership function and non-membership function to simultaneously describe the fuzzy phenomenon, enable the fuzzy phenomenon can be estimated in three kinds of state: the possible degree, impossible degree and hesitation degree, this characterization method can reflect the degree of hesitation in the fuzzy phenomenon, that is, the triangular intuitionistic fuzzy numbers can be a good solution to the problem of hesitation characterization.…”