SCB first in Thailand to introduce THOR-linked structured notes, a new investment alternative paving the way for THOR-linked products catering to every investor segment
Siam Commercial Bank (SCB) is the first in Thailand to launch structured notes based on the Thai Overnight Repurchase Rate (THOR) in order to promote product diversity in the financial market. Amid current economic and financial conditions, THOR-linked structured notes offer a new investment alternative with reliable yields for every investor segment, including corporate clients like PTT Global Chemical PCL, institutional investors like SCB Asset Management (SCBAM), and retail investors in the SCB Wealth segment. SCB is ready to support the Bank of Thailand?s THOR development and to promote wide and effective adoption of THOR for financial transactions and product development.
SCB Senior Executive Vice President and Chief Wholesale Banking Officer Mr. Wasin Saiyawan said that Thailand?s financial markets have seen constant progress and development, exemplified by the Thai Overnight Repurchase Rate (THOR), developed by the Bank of Thailand (BOT) as a reliable and transparent reference rate better reflecting Thailand's financial market conditions. Following the BOT?s promoting the adoption of THOR, SCB was the first in Thailand to introduce THOR-linked transactions to corporate clients. To further promote wider adoption, SCB is now the first to introduce THOR-linked structured notes, developed as an investment alternative offering reliable yields. Particularly amid the high volatility of yields from international financial markets, THOR-linked structured notes reflect Thai baht liquidity and offer an interesting choice for investors amid the current financial situation. THOR-linked products will bolster the market?s product variety and promote the development of new financial products by market peers in the future.
PTT Global Chemical Vice President Treasury Mrs.Natchalee Phadungsidh said that the company is delighted to adopt THOR-linked structured notes and hopes that they will lead to a variety of THOR-linked products in line with the BOT policy. THOR is a very interesting product during a time of economic slowdown and a rather low interest rate environment. The company?s investment management continues through different scenarios and sees benefits from THOR-linked structured notes. PTT Global Chemical is glad that SCB is set to promote THOR adoption through investment products, thanks to the company?s confidence in SCB?s expertise in structured notes. PTT Global Chemical is eager to play a part in developing the market stability of THOR-linked products.
SCBAM Chief Investment Officer Ms. Nunmanus Piamthipmanus said that investors seeking financial products with good returns and low risks should find structured notes interesting during the current global economic slowdown. SCB?s THOR-linked structured notes can offer interesting returns with lower volatility, compared with those linked to international markets. Always looking for new investment opportunities and products, SCBAM sees an opportunity to invest in THOR-linked structured notes. The company aims to manage value returns for investors and risk diversification through a wide range of reliable assets, as well as to promote the wider adoption of THOR and boost market liquidity.
SCB Securities (SCBS) Managing Director and Chief Investment Officer Mr. Sornchai Suneta noted that Wealth segment investors are now more cautious about investing due to uncertainties and risk factors affecting the economy both at home and abroad. SCB therefore continually seeks new investment opportunities best suited to the demands of this group of investors. The current structured note market offers a wide range of product development and reference rates, with higher risks and higher returns than deposits and debt instruments in general. THOR-linked structured notes are thus a suitable investment choice for investors in the Wealth segment, including institutional and high net worth investors. As THOR is still new to the market, SCB will continue to promote knowledge and understanding of the new reference rate to build investor confidence and support their investing in THOR-linked products in the future.