Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/340329 
Year of Publication: 
2022
Citation: 
[Journal:] Borsa İstanbul Review [ISSN:] 2214-8469 [Volume:] 22 [Issue:] 5 [Year:] 2022 [Pages:] 1033-1038
Publisher: 
Elsevier, Amsterdam
Abstract: 
We use a propensity score matching procedure to compare the returns of sukuk and conventional bond issuances in the primary market in the period 2000-2021. The results of our analysis show that sukuk are issued at lower overall coupon levels than conventional bonds. We find that the difference is between -11 and -28 basis points, depending on the matching technique used. Our analysis also shows that the difference is larger in corporate issuances than noncorporate issuances. We believe that these findings can be explained by the higher demand for sukuk issuances due to the limited investment universe available to Islamic investors.
Subjects: 
Conventional bonds
Islamic debt
Primary market
Propensity score
Return spreads
Sukuk
JEL: 
E43
G12
G21
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article
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