Thai Billionaire’s Debt Spree Evokes Asian Crisis Memory

Thai Billionaire’s Debt Spree Evokes Asian Crisis Memory – Bloomberg, December 12, 2014
…“One has to wonder whether the CP Group remembers the lessons of the Asian crisis,” said Gillem Tulloch, founder of Hong Kong-based GMT Research Ltd. Tulloch has worked in Asia as a financial analyst since 1995. “There seems to be a fondness for large debt-financed acquisitions outside of their core competency.”
…The cost to insure Thailand’s sovereign debt using five-year credit-default swaps has jumped 9 basis points to 89.5 this week, its biggest increase since September. That’s pared its decline this year to 39 basis points. As investors seek safe havens, the 10-year government bond yield has dropped to a near six-year low at 2.78 percent…