This article surveys the unique structural features of the sukuk market and assesses the potential of conflicts of interest that became apparent in the U.S. subprime mortgage crisis to contaminate the integrity of the securitization process if conducted in compliance with Shari’ah principles. This examination also considers recent regulatory changes to the definition of
This policy paper reviews the key developments in the sukuk market and informs a debate about challenges and opportunities going forward. The paper presents a qualitative analysis of economic, regulatory and legal issues that warrant consideration.
Islamic securitization based on the different structures of
After the collapse of the securities market and the ensuing market turbulence, cast serious doubts on this economic proposition of unbundling, transforming, and re-distributing credit risk via structured finance instruments. This article reviews conventional securities and makes a case for Islamic securities.
Corporates and public sector entities have caused a surge in Islamic capital market securities. The concept of asset-backing is inherent to Islamic finance, and can play a role in structuring financial/credit transactions which follow the precepts of Shariah. Development of Islamic securitization depends on economic, regulatory, and infrastructural conditions. As conventional securitization is not present in Islamic countries, Islamic securitization presents an untapped market for structural finance.
The purpose of this paper is to study the financial product innovativeness of Islamic financial institutions.
Islamic and conventional securities markets have two main differences: the Islamic market can have only equity-based and profit-and-loss sharing instruments; and these instruments cannot have a guaranteed and positive rate of return. An Islamic securities market would feature a better primary market, while in the Islamic secondary market open-ended and medium- and long-term instruments would be relatively more liquid than short-term instruments.
This paper sets out to review major debates in the field of geographies of emerging markets (EM). Observing lingering implicit assumptions about the undirectionality behind the emergence of EM discourses and practices, the paper argues that contemporary processes of South-South and South-North investment call for a ‘decentred’ view on EM integration. Such a decentred framework allows us to research whether geographical shifts in the world of global finance indeed imply a fundamental shift the nature of its practices.
This article discusses the case of securitization in Islamic finance to tease out what is universal and what is specific about this technique. To do this, the article frames the spatial dispersal of securitization as a form of 'organizational mimicry', which highlights that techniques always rely for their functioning on locally rooted 'cultures of practice', suggesting that successful transplantations require adaptation in both context and technique.