Although some of the instability may have been transitory, the analysis suggests that this market should be closely monitored and that authorities may need to rethink the role of CoCos, should they prove unable to provide for a smooth bank recapitalization. This brings me to my final remark.
Indeed, the current recovery is showing considerable resilience, which to a large extent reflects the fact that domestic demand is the primary driver of growth. At the same time, there are encouraging signs that both global growth prospects and world trade are strengthening and may well act as tailwinds to further support the recovery.