• เสี่ยงสูงเข้าข่ายเบี้ยวหนี้

High risk of debt delinquency

SCB points out that it is best to avoid investing in Chinese bonds for 1-2 years.
Mr. Sornchai Suneta CFA SCB Wealth Chief Investment Officer (SCB CIO) Assistant General Manager Siam Commercial Bank Public Company Limited revealed that the high-yield bond market in Asia, excluding Japan, There is a relatively large proportion of Chinese corporate bonds. According to data from the Bloomberg Asia Ex-Japan USD Credit HY index, there are approximately 20% of Chinese company bonds and approximately 20% of real estate bonds. This includes the Country Garden Company bonds that are in the news. in the present This year, 850 million US dollars or 29,750 million baht is due for redemption, even though principal and interest have already been paid. But there is still a lot left to pay in the next year. Especially in the period 2024-2026, there will be a total of 11,152 million US dollars or 390,320 million baht in maturing bonds.
 
This is due to the sluggish pace of the Chinese economy. This makes China’s real estate sector quite weak. from the decreased demand for housing As for interest rates in the world market, they are still high. As a result, Chinese bond issuers have a reduced ability to repay their bonds. Especially those in US dollars. In such a situation, SCB CIO recommends avoiding investing in Chinese High Yield bonds for now. From now until the next 1-2 years or until the housing demand situation in China improves. and interest rates began to decrease
 
“China’s high yield bonds still have considerable challenges. In the period 2024-2025, the number of bonds due for redemption is as high as 37,808 million US dollars or 1.32 trillion baht, accounting for approximately half of the bonds that have already been issued. Payment will be due from 2023-2043.”
 
For the Thai private sector bond market It has a value of approximately 4.4 trillion baht, most of which are good quality instruments or Investment Grade (IG) bonds, approximately 95%, still not a concern. This is because bond issuers are still able to repay principal and interest regularly. For high yield bonds, some companies have more problems. Therefore, we recommend investors If you want to invest in Thai bonds Be careful with investing. Due to the increasingly expensive interest rate situation Resulting in increasing the cost burden for the company.

As for investment grade bonds in Thailand, you can still invest. Even though the interest rate is more expensive Entrepreneurs can also be seconded. Because it has a strong balance sheet and resistant to the economic slowdown More than bonds in the High Yield group

Mr. Sornchai further said that for investors with investment experience and can accept exchange rate risk. It is recommended to invest in US dollar debt instruments, such as investing through Capped Floored Floater Notes or bonds with embedded derivatives, allowing investors to receive returns based on the underlying assets. Issued by a financial institution in US dollars. These are embedded derivative bonds that refer to an interest rate that determines the minimum and high returns that will be received. This gives a return of approximately 4.6% per year.

You can also choose to invest in Callable Notes, which are debt instruments that can be redeemed by the issuer before maturity. in US dollars The investment period is approximately 1 year, with a chance of receiving a return of approximately 5.25% per year.

We are financial advisors, providing advice on risk management, wealth management, life insurance, life insurance, investing in mutual funds, stocks. Debt instruments both domestic and foreign around the world Tax planning, insurance with a team of highly experienced professionals who will lead you to success.
 
🏆Interested in working with us to prepare to become a professional financial advisor immediately?💰:
E: moneyandwealthplus@gmail.com
T: 063-282-3651
 
📺Including our communication channels📣