Globally Placed Islamic Bonds: An Overview

Abstract

The author presents an overview of the Islamic bonds known as sukuk, which have become available to international investors in recent years, and discusses market opportunities and related investment issues. An examination of their basic features depicts a picture that is very similar to the one of internationally issued conventional bonds. A review of empirical research suggests that the international financial markets are also viewing and pricing the sukuk in a manner similar to that for conventional bonds, treating them as another type of fixed-rate security.