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Islamic Finance Briefing - Categorized | Bonds (Sukuk), Capital Market (Equity, Mutual Funds) more

Sukuk pricing distorted by thin secondary market

Posted on 05 March 2009

From Thepeninsulaqatar.com: Corporate issuers are eager to return to the Islamic bond market but a lack of secondary trading could distort the pricing of an estimated $45bn worth of sukuk in the pipeline and deter future issuance.

The credit crunch and growing prospects of a global recession have virtually frozen sukuk markets worldwide, and the issue of distorted pricing could exacerbate issuers’ reluctance to return to the markets, threatening a crucial source of funding for companies and governments….. Full Article: Source
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