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Leveraging Islamic Finance to Develop a Sustainable Capital Market

Characteristics of asset-based sukuk

Sukuk come in two forms, “asset-based” and “asset-backed”. Asset-based sukuk, despite having assets in their structure, are effectively a pass-through of the unsecured credit risk of the obligor. The obligor may be a corporate, bank, sovereign or an insurer. Asset-backed sukuk, on the other hand, are similar to securitisations.

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