Why sukuk may prove a haven amid sell-off | GulfNews.com:
"Investors seeking a refuge amid the emerging-market rout could do worse than consider Middle East Islamic bonds.
The average yield on Middle Eastern Sharia-compliant bonds, which pay a return on assets to adhere to Islam’s ban on interest, was 4.56 per cent on Wednesday, compared with 6.66 per cent for emerging-market debt. That’s near the widest such spread since March and 13 basis points from the widest since 2004.
“Sukuk are held in more stable hands and they’re not as panicky as the rest of emerging markets,” Robert Hahm, an investment manager at Mashreq Capital DIFC Ltd. in Dubai, which runs the Middle East and Africa’s best-performing Sharia- compliant fixed-income fund this year, said by phone on Aug. 25. “The investor base is more long-term oriented, more dedicated.”"
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