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What is Sukuk

An asset based Islamic bond. Similar to an asset backed bond, Sukuk is a form of commercial paper that provides an investor with ownership in an underlying asset and a return based on this ownership.

The issuing entity needs to identify existing assets to sell to the Sukuk investors, via transference to a special purpose vehicle (SPV). The Sukuk investors then have a proportionate beneficial ownership in these assets.

Investors typically take on the credit risk of the issuer rather than real asset risk on the assets owned by the SPV. They can be listed and rated, though this is not necessary, depending on the target investor market.

Sukuks are typically issued by corporate issuers, some financial institutions and by Governments. See Islamic Finance.

GlobEx Markets Publications

GlobEx Markets has an extensive listing of global finance terms and phrases. The terms that we have collected and compiled range from securities, derivatives and commodities to foreign products and Islamic finance.

Since the universe of financial terms is large, GlobEx Markets has created 3 electronic publications of terminology and phrases for 3 specific areas of finance. The primary publication, "The Language of Global Finance: Stocks, Bonds and Investments", is 191 pages and focuses upon global terms and phrases for stocks, bonds and investments.

A supplementary publication, "The Language of Global Finance: Options, Futures and Commodities", is 144 pages and focuses upon global terms and phrases for options, futures and commodities. The third publication of the series, "The Language of Global Finance: Islamic Finance", focuses on the specialized field of Islamic Finance.

Our publications are available for purchase through Amazon and directly from GlobEx Markets. To learn more, please visit the publication page listed above.

Knowledge is the Key

The most successful investors and risk managers use every tool at their disposal, which includes the understanding and the use of global finance terms and phrases. GlobEx Markets publications will improve your knowledge and understanding of global finance.

  • Wall Street Journal
  • Financial Times
  • Bloomberg
  • Nikkei Asian Review
  • Reuters