Sukuk and Bond
Two interesting yet somehow related news: 1. Innovative sukuk offering - The global offering - the first to be structured on wakala principles - has set many milestones 2. Greek bailout Mark II - it's a default It's about the whole "Euro-PIIGS" crisis (that's Portugal, Ireland, Italy, Greece and Spain, for those you who were on vacation for the past 18-months or so), and note the difference in "interest rate" for the "borrowings" below: On one hand, The sukuk, which was assigned a credit rating of A- by Standard & Poor’s and A3 by Moody’s, was offered in two tranches with the five-year US$1.2bil (RM3.6bil) paper priced at 2.991%, and the 10-year US$0.8bil (RM2.5bil) at 4.646%. On the other hand, The situation in Italy is serious. At US$262bil, total sovereign claims by international banks on Italy exceeded their combined sovereign exposures to Greece, Ireland, Portugal and Spain, which totalled US$226bil...the yield o...