Business World

Wednesday 17 September 2014

Islamic bonds dip amid fears of US Fed scaling back

Published 27/06/2013 | 05:00

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INVESTORS in Islamic bonds are losing money for the first time in more than three years amid concerns the US Federal Reserve will scale back its bond-buying programme.

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Sukuk – funds that are compliant with Sharia law – have experienced their first decline since 2009. Sukuk investors had been benefiting from a boom in Islamic finance, with Ernst & Young forecasting a surge to $1.8trn this year from $1.3bn in 2011.

"We went from a world where there was abundant liquidity to all liquidity evaporating," said investment banker Gus Chehayeb.

Irish Independent

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