Islamic securitization increasing

"Securitisation As Source of Funding Gains Appeal", BERNAMA, September 25, 2006

The growth of Islamic securitization in Malaysia is a growing quickly mode of finance. Islamic securitization, which involves sharing profit and loss between investors and managers. The only restriction placed upon Islamic securitizations is that the underlying contract must be Shari'ah-compliant. "Securitisation allows businesses to go directly to the capital markets for funding without having to go through the traditional banking channels," says Malaysian Ratings Corporation Bhd (MARC) specialist in securitization and credit derivatives.