Thailand – Default risk?

This news article was emailed around by brokers yesterday that Thailand’s risk of default has increased, ok let’s sit back and take this all with a grain of salt, Thailand is a long way away from being a default risk, ample reserves are being held by the BOT, debt-to-GDP levels are still more than manageable, what this article pointed out more than anything else is the fact that international investors have sold out of Thailand the moment Bernanke uttered the news that QE would be over and nothing more than that.

The risk of Thailand defaulting on its debt rose to the highest since June 2012 as anti-government protests prompt money managers to sell the nation’s assets.

The cost of protecting the country’s debt soared after investors including Wells Fargo Inc. pulled more than $4 billion from Thai stocks and bonds since Oct. 31, as rallies clogged up Bangkokroads and clashes left nine dead with about 550 injured. Pacific Investment Management Co., Goldman Sachs Group Inc. and Kokusai Asset Management Co. reduced holdings before protests erupted in late October, regulatory filings show.

Source: Bloomberg

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