Thanks Sifu!
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Are sukuk closer to equity or to debt?
Sukuk can be structured in a variety of ways. In terms of risk/return profile,
asset-backed sukuk are arguably closer to an equity position because sukuk holders own the underlying asset and have no recourse to the originator in the event of a payment shortfall.
Asset-based sukuk are closer to debt because sukuk holders have recourse to the originator if there is a shortfall in payments.
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I did badly in my accounting unit in secondary school time. I am lost as the article above refers to the SAME thing (asset based sukuk) and said 2 different things.
If sukuk = shares (in some Islamic way), then I can see how it reduces the debt gearing. If it is a loan (like normal bond), then I need classes on arithmetic 001, 002, 003 --- 999.
Thanks.
Btw, even your Islamic FDs are NOT a deposit, it is an INVESTMENT, do u know that?