HSBC/NASDAQ Dubai US Dollar Sukuk Index

Dubai sukuk drops on risk aversion, falling oil prices

It seems that Dubai’s Islamic bonds are dropping not only the debt of energy-rich Abu Dhabi and Qatar, as investors avoid the region’s riskier assets after slowing global economic growth crimps oil demand.
HSBC/Nasdaq Dubai GCC US Dollar Sukuk Index and the HSBC/Nasdaq Dubai US Dollar Sukuk Index stated that the breach between Islamic bonds in the Gulf and those in emerging markets rose six basis points in the past month to 36 on September 9.

Sukuk Set to Rally in Fourth Quarter, Best Run Since 2007: Islamic Finance

Islamic bonds are poised to advance for a fourth straight quarter and post their longest stretch of gains since 2007 as increased confidence in Persian Gulf issuers’ ability to pay obligations helps lure funds.
Sukuk handed investors a 4.9 percent return in the third quarter, according to the HSBC/NASDAQ Dubai US Dollar Sukuk Index, extending a rally of 0.8 percent in the previous three months and a 5.1 percent gain in the first quarter. The last time Islamic bonds posted a yearlong winning streak was three years ago when issuance rose to a record.
Investors will prefer sovereign securities with “clearly defined cash flow” over corporate debt and equities because they are worried about weakness in the recovery of U.S. and European economies said Ahmed Talhaoui, the head of portfolio management at Royal Capital

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