Islamic bond yields at four-year lows are failing to deter investors amid a flagging global recovery and dwindling new issuance of sukuk. The average yield on dollar-denominated notes that comply with religious principles from Dubai to Malaysia fell 25 basis points, so far this week to 5.22 percent, the lowest level since November 2005, according to the HSBC/NASDAQ Dubai US Dollar Sukuk Index. The yield has dropped 204 basis points this year. Investors will flock to the bond market until they are more convinced about the strength of the world economy, according to Malaysiaâs CIMB-Principal Islamic Asset Management Bhd and OSK- UOB Unit Trust Management Bhd. Demand for sukuk in the Persian Gulf is starting to pick up as the credit crisis eases and companies restructure debt, improving the outlook for future issues, according to Dubai-based Duet Mena Ltd. omar1.1 iimm.bnm.gov.my
|
