Sukuk Trails Emerging Debt as Falling Issuance Saps Trade
Islamic bonds rose this week extending two quarters of underperformance relative to emerging-market securities, on concern slumping sales will reduce trading.
Sales of Islamic bonds dropped this year as defaults, debt restructuring and falling property prices in the Middle East hurt investor confidence. Issuance from Malaysia, the world’s biggest sukuk market, fell 31 percent as companies cut infrastructure spending following last year’s recession.
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