recovery rate volatility, as it relates to the propensity for recovery rates to affect tranche prices; and

The question of exchange rates and competitive devaluation by a number of countries at international level, resulting in massive currency fluctuations, is a major item on the international political agenda.

Thus far, the impact on exports is very small, not to say that it has not been felt until now, but as we have said on many occasions, especially recently when the exchange markets have been extremely volatile, we feel that the changes in and volatility of exchange rates as they affect us as Europeans are reaching limits that are causing us great concern, and we need to remind all the other players in the global economy that excessive volatility in the exchange markets is undesirable, because it has negative consequences in terms of growth and economic activity, for everyone.

For material exposures to interest‐rate risk in the major currencies and markets, the yield curve shall be divided into a minimum of six maturity segments, to capture the variations of volatility of rates along the yield curve.

Together with other problems in the macroeconomic policy mix (such as the high real wage growth and very high real interest rates) and the high volatility of the exchange rate, this has led to a general loss in financial markets' confidence and to a loss in overall competitiveness.

The risk control measures are based on interest rate volatility, the level of interest rates, an assumed liquidation horizon and the relevant maturity of the asset.