11-27-2021, 01:54 PM
How does a sukuk share risk that bond doesn't? Don't both share risk of default?
<!-- SC_OFF --><div class="md"><p>Hi</p> <p>I am new to Islamic finance and trying to learn here. I have been told Islamic banks tend to be more risk averse than conventional banks because of the ownership of the underlying asset. I imagine this is true for bond holders as well.</p> <p>My question is: don't bondholders also share risk? Specifically the risk of default? Or is that a different risk than the risk that sukuk holders share? I don't fully get that.</p> <p>Thanks!</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/HealthMotor8651"> /u/HealthMotor8651 </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/r3a68i/how_does_a_sukuk_share_risk_that_bond_doesnt_dont/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/r3a68i/how_does_a_sukuk_share_risk_that_bond_doesnt_dont/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>Hi</p> <p>I am new to Islamic finance and trying to learn here. I have been told Islamic banks tend to be more risk averse than conventional banks because of the ownership of the underlying asset. I imagine this is true for bond holders as well.</p> <p>My question is: don't bondholders also share risk? Specifically the risk of default? Or is that a different risk than the risk that sukuk holders share? I don't fully get that.</p> <p>Thanks!</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/HealthMotor8651"> /u/HealthMotor8651 </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/r3a68i/how_does_a_sukuk_share_risk_that_bond_doesnt_dont/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/r3a68i/how_does_a_sukuk_share_risk_that_bond_doesnt_dont/">[comments]</a></span>Kind Regards R