Global funds are ditching Thailand’s bonds due to political risks before the May 14 general election, but history suggests they may soon come rushing back.
Overseas investors have offloaded a net US$750 million of Thai debt this month, the biggest selloff in emerging Asia based on divergence from the 12-month average. Funds also sold the nation’s bonds prior to the previous elections in 2014 and 2019, but inflows then surged after the votes took place.
