Although sukuk prices have rallied and spreads have compressed over the past few years, sukuk markets continue to offer value and remain under-allocated in Shariah-compliant portfolios. The demand-supply imbalance will therefore continue to favor investors in sukuk.
In summary, our longer-term view about the opportunity set for fixed income investors in the current global environment of low growth and low interest rates remains little changed. We believe that opportunities offered by corporate and emerging market sukuk continue to be attractive, while the relative valuations of perceived safe-haven bonds still appear to us to over-estimate the possibility of more extreme scenarios for the global economy………………………………………..Full Article: Source