Post by account_disabled on Dec 31, 2023 23:16:39 GMT -5
The bond market is another important fund-raising channel to drive the economy forward. And it is a market that is continuously expanding. In the past, the SEC has improved related regulations to strike a balance between "Not to be a burden on the business sector" and "Provide investor protection at an appropriate level" Recently, the SEC has once again opened to listen to opinions on improving the debt instrument regulations. To increase the efficiency of supervision to be more systematic and reduce the risk to investors. Because in the past period it was found that individual investors including the elderly Has invested in many debt instruments that are considered risky instruments And most of them are traded through a limited offering channel of no more than 10 sellers, which is not subject to very strict regulations. And are often attracted by high rates of return, averaging 7% per year, which is considered high when compared to general bank deposit interest rates at this time. The SEC has become concerned, which is why it has adjusted the criteria.
such But while the new regulations are still in the process of hearing opinions which Job Function Email Database will take some time, the SEC therefore asks investors who invest in debt instruments to be cautious. Especially those who invest in risky debt instruments. (This refers to instruments that are not rated or has a rating but is "below investment grade" called non-investment grade) and invest in channels that offer for sale no more than 10 companies mentioned above because there will not be much information about the issuer and the instrument. It is not like offering to sell to the public at large. This is said If looking at statistics during 2019 (Jan.-Aug.), it will be found that long-term, unrated or rated debt instruments were issued and offered for sale to the tune of 54,000 million baht, with the value of the issuance growing 92%. Compared to the same period last year And most of the issuing companies, nearly 70%, are non-stock companies. which has financial information only for the annual budget This makes investors even more limited. Because don't forget that the financial position of these companies may change a lot. But there will be no credit risk assessment throughout the life of the instrument from a credit rating agency. In addition, from monitoring the status of the issuer of the instrument. It was found that half of the companies issuing this group of instruments had a declining financial position. And more than half of the value is issued by real estate companies.
And in the case of guarantees Often it is a director or executive who acts as a guarantor. or has collateral in the form of land and buildings, which are illiquid assets and have limitations in valuation. Therefore, if the issuer defaults on debt repayment Getting your money back may depend on the guarantor's ability to repay. or the enforcement of such illiquid collateral. The SEC aims to promote and develop the bond market. Because it is the main pillar of the country's economic system. The concept of adjusting the criteria mentioned above therefore needs to be adjusted to create a balance. Taking into account all-round impacts on both fundraisers and investors. All stakeholders can join in giving opinions to the SEC, but at this point, the SEC asks investors in debt instruments to study the information to understand the risks and returns. Use caution in making decisions. And most importantly, don't forget to allocate your investments appropriately to the risks that each person can acceptl About preecha binmanoch Templatesyard is a blogger resources site is a provider of high quality blogger template with premium looking layout and robust design.
such But while the new regulations are still in the process of hearing opinions which Job Function Email Database will take some time, the SEC therefore asks investors who invest in debt instruments to be cautious. Especially those who invest in risky debt instruments. (This refers to instruments that are not rated or has a rating but is "below investment grade" called non-investment grade) and invest in channels that offer for sale no more than 10 companies mentioned above because there will not be much information about the issuer and the instrument. It is not like offering to sell to the public at large. This is said If looking at statistics during 2019 (Jan.-Aug.), it will be found that long-term, unrated or rated debt instruments were issued and offered for sale to the tune of 54,000 million baht, with the value of the issuance growing 92%. Compared to the same period last year And most of the issuing companies, nearly 70%, are non-stock companies. which has financial information only for the annual budget This makes investors even more limited. Because don't forget that the financial position of these companies may change a lot. But there will be no credit risk assessment throughout the life of the instrument from a credit rating agency. In addition, from monitoring the status of the issuer of the instrument. It was found that half of the companies issuing this group of instruments had a declining financial position. And more than half of the value is issued by real estate companies.
And in the case of guarantees Often it is a director or executive who acts as a guarantor. or has collateral in the form of land and buildings, which are illiquid assets and have limitations in valuation. Therefore, if the issuer defaults on debt repayment Getting your money back may depend on the guarantor's ability to repay. or the enforcement of such illiquid collateral. The SEC aims to promote and develop the bond market. Because it is the main pillar of the country's economic system. The concept of adjusting the criteria mentioned above therefore needs to be adjusted to create a balance. Taking into account all-round impacts on both fundraisers and investors. All stakeholders can join in giving opinions to the SEC, but at this point, the SEC asks investors in debt instruments to study the information to understand the risks and returns. Use caution in making decisions. And most importantly, don't forget to allocate your investments appropriately to the risks that each person can acceptl About preecha binmanoch Templatesyard is a blogger resources site is a provider of high quality blogger template with premium looking layout and robust design.