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24 Jun 2026

Financial Markets

Long-term bond issuance declined in 5M2026 amid investor concerns; full-year issuance value projected to remain near last year’s level (Current Issue No.3647 Full Ed.)

คะแนนเฉลี่ย

•    During 5M2026 (January-May), the value of Thailand’s long-term bond issuance fell by 3.7 percent YoY. This contraction was driven by investors placing greater emphasis on credit quality following recent signs of bond defaults. High bond yields have prompted businesses to raise funds more cautiously. However, KResearch expects the total bond issuance value for 2026 to reach approximately THB 850-890 billion. This is close to last year’s level and aligns with the THB 900 billion projection by the ThaiBMA.
•    The recent trend in bond offerings shows that investor concerns have not spread across the entire bond market but remain primarily confined to high-risk bonds. Investors are placing greater emphasis on the credit quality of issuers, causing fund-raising activities to remain concentrated among companies with strong financial positions. Meanwhile, high-risk issuers continue to face pressure from both high financial costs and market confidence that has yet to fully recover.
•    Although default issues in the bond market have not become widespread, high-risk bonds remain a segment that warrants close monitoring. Currently, bonds experiencing debt servicing issues account for approximately 2.0 percent of the total outstanding bond market value, most of which have already successfully undergone debt restructuring. However, the risk of these bonds returning to default has not been eliminated. Therefore, bonds that have previously undergone restructuring and are scheduled to mature in the upcoming period, along with other high-risk bonds that will gradually mature, remain a segment that should be closely monitored.

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Financial Markets