According to latest Oxford Business Group report, financial markets in Thailand are experiencing rising levels of capital inflow, drawn by the economy’s solid performance and sustained political stability. However, there are concerns this flood of funding could cause overheating and create bubbles in some segments, including the stock and property markets.
Instead of traditional bank borrowing, companies tapping retail, institutional investors by issuing bonds. In Thailand, companies have so far raised $2 billion through bonds this year. New corporate bond issuances rose nearly seven-fold from January to mid-March. These companies have been raising funds at home, taking advantage of Asia’s excess savings and an appetite for higher yield, less risky investments.