Difference between revisions of "Islamic bonds"

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(Also see: [[Islamic finance]])
(Also see: [[Islamic finance]])
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[[Bankers]] sell Islamic bonds by using property and other assets to generate income equivalent to interest they would pay on conventional [[debt]]. The money can't be used to finance gambling, guns or alcohol.  
[[Bankers]] sell Islamic bonds by using property and other assets to generate income equivalent to interest they would pay on conventional [[debt]]. The money can't be used to finance gambling, guns or alcohol.  


The world's top five [[banks]] -- [[UBS AG]], [[HSBC]], [[Barclays Plc]], [[BNP Paribas]] SA and [[Citigroup]] -- have Islamic units.  
The world's top five [[banks]] -- [[UBS AG]], [[HSBC]], [[Barclays Plc]], [[BNP Paribas]] SA and [[Citigroup]] -- have Islamic investment units.  


Sales of sukuk grew nine times faster than international corporate bonds last year. According to the Islamic Financial Services Board, an association of central banks based in Kuala Lumpur, the assets managed under Islamic rules will almost triple by 2015 to $2.8 trillion.<ref>{{cite web|url=http://www.bloomberg.com/apps/news?pid=20601109&sid=a.DsH16oTM6U&refer=home|name=Islamic Bond Fatwas Surge on Million-Dollar Scholars|org=Bloomberg|date=December 30, 2008}}</ref>
Sales of sukuk grew nine times faster than international corporate bonds last year. According to the Islamic Financial Services Board, an association of central banks based in Kuala Lumpur, the assets managed under Islamic rules will almost triple by 2015 to $2.8 trillion.<ref>{{cite web|url=http://www.bloomberg.com/apps/news?pid=20601109&sid=a.DsH16oTM6U&refer=home|name=Islamic Bond Fatwas Surge on Million-Dollar Scholars|org=Bloomberg|date=December 30, 2008}}</ref>
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== References ==
== References ==
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<references />


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Latest revision as of 11:44, 13 May 2013


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(Also see: Islamic finance)

Islamic bonds, or sukuk, conform to Shariah law, which requires that investors profit only from transactions based on the exchange of assets, not money alone; therefore, interest is banned.

Bankers sell Islamic bonds by using property and other assets to generate income equivalent to interest they would pay on conventional debt. The money can't be used to finance gambling, guns or alcohol.

The world's top five banks -- UBS AG, HSBC, Barclays Plc, BNP Paribas SA and Citigroup -- have Islamic investment units.

Sales of sukuk grew nine times faster than international corporate bonds last year. According to the Islamic Financial Services Board, an association of central banks based in Kuala Lumpur, the assets managed under Islamic rules will almost triple by 2015 to $2.8 trillion.[1]

References[edit]