In a market galvanised by central bank action in the US and in Europe, strong appetite for emerging market bonds have eroded the pricing advantage enjoyed by sukuk over conventional paper say origination bankers, at a time when yield-starved Islamic investors have started to become more selective.
The shift might carry significant implications for the sukuk market, where issuers used to be able to save as much as 40bp by printing Sharia-compliant bonds as opposed to conventional notes.
Read more at Reuters…
http://in.reuters.com/article/2012/09/17/idINL5E8KHMON20120917
