Despite rising interest rates, the Bank of Thailand has expressed confidence in the limited risk of corporate bond rollover this year, stating that it should not pose a significant threat to systemic risk. The local bond market has remained functional, with private businesses continuing to secure new funds.
Sakkapop Panyanukul, the senior director for financial markets at the central bank, acknowledged the presence of rollover risks. However, he attributed these to specific internal factors unique to each company. He pointed out that corporate bonds have exhibited positive growth over the past three years, demonstrating the capacity of local businesses to secure new funding.
In anticipation of increased financial costs from interest rate hikes, numerous private businesses have preemptively secured low costs through bond offerings. The Bank of Thailand’s data indicates a 9%…
