One of the key aspects of a secure investment is liquidity. The ability to turn your investment to cash is considered a key component of mature financial markets.

That’s why it is so important that sukuk, also known as Islamic bonds, lack liquidity, especially as compared to conventional bonds.

Investors holding sukuk that get into trouble–and a lot of sukuk have gotten into trouble over the past 4 years–will find that there is almost no secondary market for the instruments that the hold.

Who says?

Malaysian Securities Commission deputy┬áchief executive Datuk Dr Nik Ramlah Mahmood…



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