Thai Farmers Asset Management, the asset management arm of domestic banking giant Thai Farmers Bank with assets of over THB130 billion (USD3.04 billion), is getting ready to purchase equity-linked and credit-linked notes the first time. "We think that with interest rates so low and with equity prices having more upside potential, it's a good opportunity to use leveraged products," said Yingyong Nilasena, first senior v.p. of fixed income in Bangkok. The fund has looked at using structured notes since last year (DW, 8/25) but has been held up by documentation and pricing issues, on which Nilasena declined to elaborate.
"It's been a gradual process," said Nilasena. He noted that the firm is looking at buying both credit and equity-linked notes on domestic names and expects to pull the trigger within three months. Thai Farmers Asset Management will likely start investing USD10 million or so at first to test the waters, he added.
Nilasena continued that if the structured note investments prove successful, the asset manager will consider launching a new fund that invests a large proportion of its assets in such products by year-end.
