Display mode (Doesn't show in master page preview)

13 May 2008

Financial Markets

Deposit and Investment Products Reflecting Change in View toward Interest Rates (Business Brief No.2163)

คะแนนเฉลี่ย
It is noted that the issuance of private debentures – among other deposit and investment products – have shown marked increases in value over the past few months. As a result, the total value of newly-issued debentures during the first five months of this year is expected to reach at least THB94 billion, rising considerably over the average of THB47 billion in the past three years. The pattern of yields offered has also seen some changes including the issuance of debentures, offering step-up rates that gradually increase over years of tenure, or those with floating rates which are in the pipeline. As for deposit products, Thai commercial banks have recently launched long-term fixed deposit products carrying ;semi-floating” rates linked to fixed deposit rates, as a baseline, plus a margin, as agreed.

The rising value of newly-issued debentures and the changing pattern of yields being offered implies a changing view among fund raisers and investors toward the domestic interest rate trend, which may soon shift to an upward cycle. Even so, inflation and economic growth are what should be closely monitored to see whether this perspective will last and if so, for how long.

View full article


Financial Markets