Back in 2009, the market for Shariah bonds (sukuk) nearly collapsed under the weight of a series of defaults.
In more recent years, Sukuk have become the favored instrument of choice by the Shariah finance industry.
With the collapse in the price of oil, don’t be surprised to see the return of defaults though. Here’s how defaults of Sukuk work according to Shariah…
http://www.sukuk.com/index.php/education/defaulting-sukuk-penalties-restructuring-3534/
