JPMorgan Index Move Puts $370 Billion Islamic Debt on Radar
- Aberdeen Islamic says it’s already receiving client queries
- Gauge inclusion to encourage more sukuk trading: Sedco Capital
JPMorgan Index Move Puts Sukuk on Radar
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JPMorgan Chase & Co.’s decision to include Islamic bonds in its indexes will draw more global investors to the $370 billion sukuk market and boost trading of the debt.
Shariah-compliant notes will be eligible for inclusion in five JPMorgan gauges from Oct. 31 and will account for between 0.35 percent to 0.99 percent of total assets on the benchmarks, according to an Aug. 18 statement by the bank. Sukuk will be assessed on the same criteria as non-Islamic bonds, the index compiler said.