PT  - JOURNAL ARTICLE
AU  - S.R Vishwanath
AU  - Sabahuddin Azmi
TI  - An Overview of Islamic Sukuk Bonds
AID  - 10.3905/JSF.2009.14.4.058
DP  - 2009 Jan 31
TA  - The Journal of Structured Finance
PG  - 58--67
VI  - 14
IP  - 4
4099  - https://pm-research.com/content/14/4/58.short
4100  - https://pm-research.com/content/14/4/58.full
AB  - Sukuk (plural) are unique fixed-income vehicles structured as asset-, project- or service-backed entities. They provide proportionate ownership in a designated asset or pool of assets. This enables investors (sukuk holders) to have an undivided, beneficial ownership in the underlying assets, entitling them to a share of the revenues and proceeds upon disposition. A saak (singular) offers the diversification of fixed income, paying an income stream (similar to rental income), while remaining Shari’ah compliant. Since interest- bearing instruments are not permissible under Islamic Investment Principles, the investment concept called sukuk was created as an alternative to traditional bonds. Sukuk are asset-based securities whereas bonds are debt-based. Sukuk are not subject to interest-rate movements. This article provides an overview of the market for sukuk.TOPICS: Developed, fixed income and structured finance