Islamic bond yields drop as supply falls short
Although sales have doubled this year, it seems that global Islamic bonds are approaching record lows. Yields dropped for a fifth month to an average 3.66 per cent on July 29.
PT Danareksa Investment Management and Franklin Templeton Investment Management Ltd stated that Asia and the Middle East will keep attracting foreign investment as economic growth outpaces that in developed markets this year. As oil prices are being kept above the five-year average, demand for sukuk in the Gulf Cooperation Council (GCC) nations after Dubai World and Nakheel PJSC restructured debt is more an more.