Governments are facing difficulty raising tax revenue as the population ages, likely resulting in defaults on sovereign debt, said Arnaud Mares, an executive director at Morgan Stanley. "Governments will impose a loss on some of their stakeholders," Mares wrote in a research report. "The question is not whether they will renege on their promises, but rather upon which of their promises they will renege, and what form this default will take." He added that the sovereign-debt crisis, which he considers global, is not over.

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