TY - JOUR T1 - An Overview of Islamic Sukuk Bonds JF - The Journal of Structured Finance SP - 58 LP - 67 DO - 10.3905/JSF.2009.14.4.058 VL - 14 IS - 4 AU - Vishwanath, S.R AU - Azmi, Sabahuddin Y1 - 2009/01/31 UR - http://jsf.pm-research.com/content/14/4/58.abstract N2 - Sukuk (plural) are unique fixed-income vehicles structured as asset-, project- or service-backed entities. They provide proportionate ownership in a designated asset or pool of assets. This enables investors (sukuk holders) to have an undivided, beneficial ownership in the underlying assets, entitling them to a share of the revenues and proceeds upon disposition. A saak (singular) offers the diversification of fixed income, paying an income stream (similar to rental income), while remaining Shari’ah compliant. Since interest- bearing instruments are not permissible under Islamic Investment Principles, the investment concept called sukuk was created as an alternative to traditional bonds. Sukuk are asset-based securities whereas bonds are debt-based. Sukuk are not subject to interest-rate movements. This article provides an overview of the market for sukuk.TOPICS: Developed, fixed income and structured finance ER -