Thailand's corporate bond market contracted during the first five months of 2026 as investors became increasingly selective amid concerns over credit quality, higher funding costs and a fragile economic outlook.According to Kasikorn Research Center (K-Research), the value of long-term corporate bond issuance totalled 337 billion baht between January and May 2026, down 3.7% year-on-year.
The decline reflects growing investor caution following several high-profile bond defaults in recent years, as well as continued uncertainty surrounding geopolitical developments, Thailand's subdued economic growth, and elevated bond market yields, said the think tank.
The slowdown has prompted companies to adopt a more conservative approach to fundraising. New issuance has been concentrated in investment-grade bonds, defined as securities rated BBB- or higher, which accounted for roughly 95% of total issuance or 321 billion baht.
Despite the weak start, K-Research expects Thailand's corporate bond issuance in 2026 to reach 850-890 billion baht, on par with last year and close to the forecast of 900 billion by the Thai Bond Market Association.
"Corporate borrowers are expected to remain active in refinancing maturing debt and securing working capital, although volatility in bond yields will continue to influence issuance decisions," noted K-Research.
