DebtTalks Episode 15. Lessons learned: a practitioner’s experience
9 snips
Jun 3, 2025 Join Thomas Lambert, Managing Director at Lazard's Sovereign Advisory Group, as he delves into the world of sovereign debt restructuring. Drawing from his extensive experience, Thomas shares key insights from notable cases like Zambia and Sri Lanka. He discusses the challenges of coordinating among creditors and the essential role of multilateral institutions. The conversation also highlights the complexities of investing in high-risk markets and the vital link between interest rates and economic growth, providing valuable lessons for policymakers in navigating financial distress.
AI Snips
Chapters
Books
Transcript
Episode notes
Defining Frontier Economies
- Frontier economies are market-defined, between the very poor and mature emerging countries.
- These countries face higher economic, political, and liquidity risks and likelihood of default.
Investor Challenges in Frontier Bonds
- Frontier economies' bond markets are very small but investors are very vocal and active.
- Many frontier investors express disappointment and doubt profitability over the investment cycle.
High Interest Rates Challenge Debt
- Interest rates affect sovereign borrowing costs significantly, creating a psychological barrier.
- Countries must grow nominally above their interest rate to keep debt sustainable, which is very challenging at high rates.
