Sukuk and bond spreads

Sukuk are considered as an alternative instrument in Islamic finance. However, the structures and provisions make sukuk dissimilar to bonds. Literature is having difficulty comparison between performance/integration of bonds issued at same time. To fill existing literature gap on risk, we focus yield spread by comparing bond through their main determinants using data financial non-financial firms weekly level. We use 123 that both period for years 2013 2018. employ company market. Accordingly, able minimize factors raised from structure differences. Using panel generalized least squares estimations, find global factors, such US government significant impact sukuk-bond In particular, negative returns create more other hand, shocks markets, proxied DJ index, highly limited. By quantile analysis, effects higher or lower spreads do not change.