From Reuters: A master agreement for asset-backed Islamic bonds will help spur demand for securitised paper in the fast-growing industry, bankers and lawyers said. Islamic finance industry body IIFM is looking to develop a template in 12 to 18 months that will help mitigate some of the legal and operational complexities surrounding asset-backed Islamic bonds, or sukuk, said its chief executive Ijlal Alvi.
At present, issuers offer instruments that provide no recourse in the event of a default, bankers and lawyers said……………………………………….Full Article: Source