Do Sukuk provide diversification benefits to conventional bond investors? Evidence from Turkey

Pirgaip, Burak; Arslan‐Ayaydin, Özgür; Karan, Mehmet Baha

doi:10.1016/j.gfj.2020.100533

Cited by 18 publications

(14 citation statements)

References 66 publications

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“…However, they find that Sukuk investors are not sufficiently compensated for the higher risk. Furthermore, Pirgaip et al (2020) unveil the diversification behavior of bond portfolios (conventional and Sukuk) in Turkey, and their result confirms the presence of these benefits in times of economic downfalls. They also construct different riskreturn pattern individually or mixed, where risk substantially differs based on the direction of the risk-return profile.…”

Section: Literature Reviewsupporting

confidence: 52%

Quantifying the connectedness and portfolio implications between Islamic and conventional bonds: Evidence from global and GCC regions

Amin

Hakim²,

Rashid

et al. 2022

JEA

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We explore the connectedness and portfolio implications between Islamic and conventional bonds of global and GCC regions. We also compare which bonds are performing better during our sample period. Unlike previous studies, we focus on Islamic bond markets compared to their conventional counterparts and highlight the GCC bonds (Islamic and conventional) in respect of global bonds. We apply DCC-GJR-GARCH (1,1) method, Sharp ratio and portfolio implications strategy over the period from 01 September 2013 to 23 February 2022. Our time-varying results suggest that the relationship among all the variables varies over time, but most of them are positive, suggesting that there is a less diversification opportunity between Islamic and conventional bonds. Hedging and diversification benefits are found only in the limited period among these variables, especially between GCC bond and global bond, and global Sukuk and GCC Sukuk. The findings of risk-adjusted returns reveal that Islamic bonds outperform compared to conventional counterparts. Moreover, mixed results are found in the case of hedging cost, and majority of fund, based on the optimal weights, should be invested in Islamic bonds. Our study endows investors and regulators in the global, and GCC markets with new insights on how to shield their investments and the financial system from financial crisis through a hedging strategy with Islamic finance.

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Section: Literature Reviewsupporting

confidence: 52%

Quantifying the connectedness and portfolio implications between Islamic and conventional bonds: Evidence from global and GCC regions

Amin

Hakim²,

Rashid

et al. 2022

JEA

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“…Their results indicate that Sukuk may differ from traditional bonds due to contractual arrangements. Recently, Pirgaip et al (2020) studied the diversification behavior of bond portfolios (both traditional and Sukuk) in Turkey. In a similar vein, Ali et al (2021) perform a wavelet analysis of portfolio diversification benefits of Islamic and responsible finance.…”

Section: Literature Reviewmentioning

confidence: 99%

How resilient are Islamic financial markets during the COVID-19 pandemic?

Hasan

Rashid²,

Shafiullah³

et al. 2022

Pacific-Basin Finance Journal

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“…As a result, when compared to bonds, the sukuk structure has demonstrated greater resilience to economic shocks (Bhuiyan et al, 2018). According to Pirgaip et al (2020), including the design of sukuk in the investment portfolio allows for greater portfolio efficiency.…”

Section: Definition Of Sukuk and Its Featuresmentioning

confidence: 99%

Attributes for humanitarian sukuk: Evidence from ASEAN Countries

Muhamat

Bahrin²,

Jaafar³

et al. 2023

E-BPJ

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Humanitarianism was never entirely resolved, and it continues to pose a severe threat to people's well-being, particularly the economy and standard of living. Providing continuous access to humanitarian aid during the conflict or in the aftermath of the crisis poses a significant challenge to the stakeholders. This study acts as a preliminary investigation to explore the precursors of humanitarian sukuk in the region, through qualitative approach. Findings indicate that Indonesia should explore using sukuk to achieve its humanitarian commitments. While for Malaysia, being at the forefront of the industry, is expected to continue innovating the Islamic capital market landscape with sophisticated instruments and robust regulations. Keywords: humanitarianism; sukuk; Indonesia; Malaysia eISSN: 2398-4287 © 2023. The Authors. Published for AMER ABRA cE-Bs by e-International Publishing House, Ltd., UK. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer–review under responsibility of AMER (Association of Malaysian Environment-Behaviour Researchers), ABRA (Association of Behavioural Researchers on Asians/Africans/Arabians) and cE-Bs (Centre for Environment-Behaviour Studies), Faculty of Architecture, Planning & Surveying, Universiti Teknologi. DOI: https://doi.org/10.21834/ebpj.v8i23.4468

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Do Sukuk provide diversification benefits to conventional bond investors? Evidence from Turkey

Cited by 18 publications

References 66 publications

Quantifying the connectedness and portfolio implications between Islamic and conventional bonds: Evidence from global and GCC regions

Quantifying the connectedness and portfolio implications between Islamic and conventional bonds: Evidence from global and GCC regions

How resilient are Islamic financial markets during the COVID-19 pandemic?

Attributes for humanitarian sukuk: Evidence from ASEAN Countries

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