Credit rally erodes sukuk advantage
The market in the US and Europe is galvanized by central bank operations. Meanwhile, yield-starved Islamic investors grow more and more selective. High interest for emerging market bonds resulted in erosion of the advantage in price that sukuk enjoyed until recently. It is possible that issuers will not be able to save as much as 40bp with suku any longer. At the same time, according to S&P, borrowers have raised USD19.2bn so far in 2012.
More on: http://in.reuters.com/article/2012/09/17/idINL5E8KHMON20120917
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