Rising Yield on US Treasuries Hamper Global Sukuk Market in 2021: Al Rayan Investment (Qatar)

In the week to the 26th of February 2021, the United States (US) treasury yields climbed significantly as inflation bets picked up, resulting in a global sell-off on fixed income investments. As a result, fund managers pulled back on market exposures, whilst analysts on Wall Street scaled back bullish strategies. As the US Treasury yields rise, fixed income markets around the world remain cautious.

Why it matters?

Sovereign and corporate Sukuk issuances globally have come in at their lowest levels to date (26th of February 2021) for 2021 at around USD 2 billion, compared to the same period since 2015, according to data from Bloomberg. Akber Khan, Senior Director of Asset Management at Al Rayan Investment in Doha, stated that subdued Sukuk issuances h...