Debt key threat to bond markets

Debt key threat to bond markets

Local REITs touted as resilient alternative

Global bond markets may plunge into a financial crisis if private bad debt and public debt mount, while global stock markets could fall sharply if the Federal Reserve (Fed) pulls back on its quantitative easing (QE) after the central bank signalled a tapering in its latest statement.

Investing in Thai real estate investment trust (REITs) may prove an alternative to these markets as it is more resilient to these external factors, says Win Promphaet, chief investment officer at Principal Asset Management.

Mr Win said the US and global stock markets have been bullish recently, mainly due to the Fed’s continued QE practices by purchasing bonds to add liquidity to the economy and financial system. But if the Fed slows or stops QE, it could…