Dynamic transmissions between Sukuk and bond markets

Aktham I. Maghyereh, Basel Awartani

    Research output: Contribution to journalArticlepeer-review

    48 Citations (Scopus)


    In this article we contribute to the recent debate on the difference between Islamic bonds (Sukuk) and conventional bonds by investigating returns and volatility spillovers of Sukuk and global bonds with equities. The dynamic spillover index methodology proposed by Diebold and Yilmaz (2012) indicates different transmission mechanisms of Sukuk compared to bonds. The main distinctive features of the Sukuk market are the higher transmission of information from equities, and the weaker transmission of information from the Sukuk market to other markets. Thus, this paper highlights the importance of Sukuk in the strategic asset allocation and hedging of international investors.

    Original languageEnglish
    Pages (from-to)246-261
    Number of pages16
    JournalResearch in International Business and Finance
    Publication statusPublished - Sept 1 2016


    • Diversification
    • Islamic finance
    • Sukuk
    • Variance decomposition
    • Volatility spillovers

    ASJC Scopus subject areas

    • Business, Management and Accounting (miscellaneous)
    • Finance


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