Pushing boundaries

Sharia-compliant CDOs

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The double-digit growth in the Islamic finance market over the past year has aroused the interest of investment banks' structuring teams. The Islamic bond market grew by more than 300% last year to $6.7 billion, and with $1.08 billion issued in the first quarter of 2005, dealers reckon that the Islamic bond, or sukuk, market will reach new highs this year.

But despite the strong growth, it hasn't been enough to soak up the vast amount of liquidity in the Islamic banking world, particul