HSBC Postpones its First Islamic Bond Fund
On September 10, 2009 · In Debt Bonds, Economic Crisis, HSBC, Islamic Bonds, Islamic Finance, Shariah Bonds, SUKUK
HSBC said on Wednesday it has postponed the launch of its first fund investing in sukuk, or Islamic bonds, after investors were put off by a four-year lock-up period.
Investors worldwide were caught out by lengthy or sudden lock-ups imposed by investment managers during the credit crisis, which limited access to much-needed cash.
The sukuk market boomed in 2007, reaching $33.1 billion, but slowed down in 2008, hit by the financial crisis.
Meanwhile, Kuwaiti firm Investment Dar in May defaulted on a $100 million Islamic debt issue, the first such default for a major, public Islamic instrument in the region.
These facts and events demonstrate unequivocally that Islamic finance has NOT escaped the impact of the global economic slowdown…
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