SUKUK - Asian Dollar Sukuk Relative Yield Slumps on U.S. Slowdown: Islamic Finance

Yields on Asia’s dollar Islamic bonds have slumped to the lowest levels in three months relative to local-currency debt on evidence that the U.S. economic recovery is flagging as growth accelerates across the region. 

The difference between the yield on the Malaysian government’s 3.928 percent five-year dollar sukuk and the similar-maturity 3.86 percent ringgit Islamic note widened five basis points this month to 67, prices from Bursa Malaysia and Royal Bank of Scotland Group Plc show. The gap grew 52 basis points in July and reached 76 on Aug. 19, the most since the dollar bonds were sold in May. 

SUKUK - Sukuk Four-Year Low Yields Fail to Deter Funds: Islamic Finance

Aug. 20 (Bloomberg) -- Islamic bond yields at four-year lows are failing to deter investors amid a flagging global recovery and dwindling new issuance of sukuk.

The average yield on dollar-denominated notes that comply with religious principles from Dubai to Malaysia fell 25 basis points, or 0.25 percentage point, so far this week to 5.22 percent, the lowest level since November 2005, according to the HSBC/NASDAQ Dubai US Dollar Sukuk Index. The yield has dropped 204 basis points this year.