Monetary Policy and Risk-Taking: Evidence from Thai Corporate Bond Markets
Focusing on Thailand’s corporate bond market from 2001–2020, the study reveals how low rates encourage firms—especially in the property sector—to issue riskier, longer-term bonds, often snapped up not by big institutions but by individual investors chasing higher yields.
This paper doesn’t just crunch numbers; it sheds light on subtle shifts in risk-taking behavior and offers a cautionary tale for policymakers and investors alike, making it a must-read for anyone interested in the ripple effects of monetary policy.