Islamic bonds trailed emerging-market debt for a second year as foreign funds chased higher yields, a trend that Union Investment Privatfonds says is likely to continue in 2013. Global Shariah-compliant notes gained 9.6 percent in 2012, according to the HSBC/Nasdaq Dubai US Dollar Sukuk Index, compared with 18.5 percent for developing-nation securities, JPMorgan Chase & Co.’s EMBI Global Composite Index shows.
The average yield on dollar sukuk dropped 1.18 percentage points to 2.81 percent, while that for emerging-market paper fell 1.58 percentage points to 4.50 percent, according to the two gauges………………………………………..Full Article: Source