Rising political risks positive for Thai bonds: Barclays

08 Jul 2012

If Thailand’s politics grow more turbulent the effect on the sovereign market will likely be positive due to a domestic investor flight to safety and the BoT increasing liquidity, says Barclays.

Increase in political unrest in Thailand could cause a sovereign bond rally as the Bank of Thailand (BoT) would likely cut rates to minimise the impact on the economy and domestic investors would flee to safe assets, according to Barclays.

The bank believes that Thai Government Bonds (ThaiGBs) are ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial