CIMB Asset Management Monthly Sukuk Newsletter

CIMB Asset Management has launched a monthly newsletter about the Sukuk market:

"Industry practitioners are positive that 2011 will favour the sukuk industry and various indicators show that a delayed resuscitation of the Islamic bond market is on track this year. As economies recover and high crude oil prices help to revive the market, sales of international sukuk are forecasted to grow over USD22 billion this year, which represents a 29 per cent increase from the previous year. The upswing in corporate spending, an increase in issuers seeking funding diversification and improving investor sentiment in the Gulf are also expected to fuel the sukuk market globally.

According to the HSBC/NASDAQ Dubai US Dollar Sukuk Index, the difference between average yields for emerging-market sukuk and the London interbank offered rate narrowed to 282.7 basis points on
6 January 2011 - the least since August 2008. Industry practitioners agree that the low sukuk yield spreads should entice sukuk issuers to tap the market.

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