Despite Thailand’s economy showing signs of resilience and opportunity, liquidity and the corporate bond market remain under pressure. The Thai Bond Market Association (ThaiBMA) reported a total outstanding corporate bonds of THB 4,665 billion as of June 2024, which is a 0.7% decrease from the data as of December 2023, and includes the combination of an 8.0% decrease in commercial paper and a 0.2% decrease in long-term corporate bonds.
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Despite Thailand’s economy showing signs of resilience and opportunity, liquidity and the corporate bond market remain under pressure. The Thai Bond Market Association (ThaiBMA) reported a total outstanding corporate bonds of THB 4,665 billion as of June 2024, which is a 0.7% decrease from the data as of December 2023, and includes the combination of an 8.0% decrease in commercial paper and a 0.2% decrease in long-term corporate bonds. The decline in the corporate bond market value is likely due to the current stagnation, where investors in the high-yield bond market (rated BB+ and below) have lost confidence in several companies over the past year. This has created a ripple effect for companies with low or negative cash flow seeking to refinance or rollover their bonds. Investors are increasingly skeptical of these companies’ revenue-generating capabilities and profitability. To…