Thursday, August 16, 2007

Islamic securitizations, Islamic branding

Islamic finance is moving from asset-based sukuk where noteholders cannot claim underlying assets to asset-backed securitizations where they do. However, as Mahmoud El-Gamal notes, until there is a large sukuk default, we won't know how accurate ratings and sukuk pricing.

One lesson from the sub-prime meltdown: it is unrealistic to assume that pricing can be accurate where there is not a large secondary market actively trading asset being priced.

HSBC Amanah is waiting for a rule change allowing majority foreign ownership of Islamic banks before it enters Brunei's market.

Another article about Islamic branding

The Aga Khan is visiting Africa to check on his foundation's work, including the microbusiness program

1 comment:

russ said...

I would like to pose a question on what type of sukuk is suitable for financing urban redevelopment projects. Let's say the project area is not a greefield site and is inhabited and thus, the urban renewal agency has to acquire properties from the existing residents in order to assemble the project site. Can the acquisition costs for this site assembly (which could take around 2 years) be achieved through Sukuk, and if so, which type? Murabaha? Ijara?

Opinions on this will be most appreciated!