Haugaard: Lack of Democratic Feedback Mechanisms Gradually Builds Sovereign Credit Risk
Thomas Haugaard · Thomas Haugaard - Hard Currency Emerging Markets Debt at JHI (EP.356) · Dec 14, 2023 · at 28:36
Thomas Haugaard of Janus Henderson Investors explains the long-term credit risks associated with autocratic governance models in emerging markets debt.
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“You do see that time corrupts, and a lot of the feedback mechanisms that you have in democracies, they disappear. They don't exist in the long term, and I think that's the biggest challenge. It's not you want to Two-year sovereign credit risk assessment that we are taking, but it's more the long-term implications of those systems that gradually build up sovereign credit risk.”
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