The world economic downturn has passed its low point, with financial markets rebounding, Morgan Stanley CEO John Mack said on Friday.

We have seen a very robust market in the last five months, he told Reuters Television.

Mack said the capital markets were open and all asset classes now had liquid markets except for securities backed by commercial real estate assets and residential mortgage-backed securities.

Mack was asked if efforts to reform the financial system in the wake of the credit crisis were at risk because of Washington's current focus on healthcare reforms.

Clearly the momentum has slowed down, he said, but he also said he believed financial reform was not doomed.