The favourites for the first true securitization are Dubai, Indonesia and Malaysia. All are expected to produce Islamic securitization transactions next year.
Islamic finance is necessarily driven by asset-backed finance (it has to be for sharia compliance) and this lends itself well to securitization. But the first true securitizations have been frustrated by a combination of unique Islamic structuring concerns and the usual emerging markets considerations.
The Islamic challenges include finding a guaranteed minimum return for investors, limiting or capping risk, the provision of guarantees and hedging arrangements (where scholars are not all in agreement).
Access intelligence that drives action
To unlock this research, enter your email to log in or enquire about access
