Asymmetric relationship between green bonds and Sukuk markets: The role of global risk factors

This study investigates the asymmetric connectedness and spillover effects between two ethical fixed-income assets (Sukuk green bonds) with regard to global risk factors using a sample of 15 Sukuk markets bond indices. complex network allows us examine extreme interlinkages across bonds under different market conditions, captures sudden upward changes in total net indices hence, serves as an alerting system for any impending crisis relation factors. Empirical results indicate persistency feature Hong Kong Malaysian, UK Nigerian conditions. More importantly, are not largely affected by middle, upper lower quantiles. Findings from portfolio analysis show that is effective hedging risks These potential diversification characteristics reduction benefits robust hold during Covid-19 pandemic period. Finally, our findings paramount importance investors who interested investments well policymakers order maintain stable sound financial system.