hello, guysI find that the implied rate from THB Offshore Cross Currency Swap vs THB Offshore Interest Rate Swap are quite different?Anyone can help advise on the reason behind?Appreciate your help

The difference represents the Cross-currency basis - which arises due to the funding of the THB principal vs the USD principal every 3m in the offshore FX Forward market. Alternatively you can think of it as due to the credit-premia between holding a THB denominated floating rate note and a USD denominated floating rate note.

thanks...

For offshore swap market like THB, both NDIRS and NDCCS are traded. For both case, should we use an identical fx fwd to convert THB flows? If so, how we should work out this fx fwd properly? And shall we use same $ discount curves for both case? If so, suppose NDIRS market most liquid instrument is vs 3m LIBOR and NDCCS is vs 6m LIBOR, what $ discount curve we should choose in this case?Many thanks

I think NDCCS will give you the implied FX rate as you know the non-delivery currency's cashflow is known, and you already have the USD libor index projection and risk free discount curve. Thus you can solve the implied FX rate. For NDIRS, because it is a different market than onshore IRS, thus you cannot use the onshore IRS curve to project the reference rate levels. Put in another way, there is no risk free arbitrage between onshore IRS and NDIRS markets, even though they are the same reference rate. And thus they will have different projections. So you cannot solve the implied FX rate from NDIRS directly. You have to use either the FX forward rates, or the implied FX rate from NDCCS to help you to solve the expected reference rate in the non-delivery market.