The Thai bond market will remain robust with favourable returns this year thanks to sustained high interest rates, with new issuances estimated at 1 trillion baht, according to financial advisor SCB Wealth.
Sornchai Suneta, executive vice-president of SCB Wealth’s Investment Office and Product Function, said the bond market is expected to continue to yield favourable returns, attributed to elevated interest rates that should decline in the future.
“Historically as bond interest rates decrease, bond prices tend to rise, leading to additional returns for investors in the form of capital gains, alongside coupon returns,” said Mr Sornchai.
A notable increase in high-yield supply to the market is anticipated during 2024-2025. Numerous companies have expressed an intention to issue high-yield bonds to refinance existing debt, though there are challenges…
