And financing conditions have improved in capital markets too, which has been followed by a pick-up in corporate bond issuance. This credit reversal has in turn supported a second benign characteristic of the recovery: the fact that it has become increasingly driven by domestic sources of growth. Domestic demand has now replaced foreign demand as the main driver of growth.
Whereas I think it is legitimate to reflect on the pros and cons of possible regulation, I strongly believe that any regulatory response, if it proves necessary, should be taken in a coordinated manner at the international level (with particular attention to the transatlantic level), given the global nature of the hedge fund industry.