Tapping surplus liquidity

Tapping surplus liquidityIslamic financial institutions are flush with cash, and banks are increasingly looking at sharia-compliant investments to park their money. It's sparked a flood of Islamic asset-backed securities issuance this year, with both Muslim and so-called conventional issuers keen to tap the market. By Alice Hales

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Strange as it may sound, high oil prices could turn out to be the biggest stimulant the Islamic securitisation market has ever had. With oil hovering around $60 a barrel, there is a huge amount of liquidity in the Middle East, North Africa and parts of Asia. According to the General Council for Islamic Banks and Financial Institutions, pure Islamic-owned financial institutions have around $260 billion of assets under management. That doesn't include the estimated $200 billion–300

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