Jul 5, 2026
In this episode of Perspectives, Escala Chief Investment Officer, Tracey McNaughton, explores the question: who will pay for the building of strategic capability? From sovereign balance sheets and bond markets to private capital and Australia's superannuation system, she examines how the "Price of Sovereignty" could reshape investing for years to come.
(0:44) Can governments actually afford another nation-building cycle?
(3:30) Does that mean bond markets become a much bigger part of this story?
(5:13) So, the price of sovereignty isn't just the cost of building new infrastructure. It's also the cost of financing it.
(6:13) Who are the alternatives? You may have just given us a hint in your last answer.
(6:57) On the surface, it looks like another trade dispute. Do you think it's actually something much bigger?
(8:47) So, if governments are constrained and taxation becomes politically difficult, that inevitably pushes more of the burden onto private sector capital.
(9:33) Why is that such an important distinction for investors?
(10:34) We’re already starting to see governments actively encourage private companies to become partners in rebuilding strategic capability. South Korea is probably the best example this week.
(12:05) How do governments ensure the benefits are shared broadly across society, rather than simply accruing to a handful of companies and shareholders?
(14:33) Maybe one way of getting that alignment is by having each of us invest in it via our superannuation fund. Do you think this debate eventually arrives here?