Sukuk Five-Month Gain Will Spur Sales Recovery: Islamic Finance
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Islamic bonds gained for a fifth month, sending yields to the lowest levels since 2005, as faster growth in the Persian Gulf lured investors who expect new sales to recover after falling 27 percent this year.
The notes returned 0.7 percent in October while average yields dropped 19 basis points to 4.85 percent, above the Oct. 11 low of 4.62 percent, according to HSBC/NASDAQ Dubai US Dollar Sukuk Indexes. Issuance of sukuk, which pay asset returns to comply with the religion’s ban on interest, dropped to $13.5 billion, from $18.5 billion a year earlier, data compiled by Bloomberg show.