The standardization of Islamic financial products is currently evolving, both for Islamic derivatives standardization and financial engineering)2. Sukuk (Islamic bonds, current trends and issues in the market, standardization etc.)3. Islamic funds (incl. specific hedge-fund practices, Islamic REITs, Islamic PrivateEquity funds, brief overview on market indices)4. Islamic structured products (all currently existing types of Shariah-compliant structuring principles, example products, etc.)C. Islamic risk management 1. Risk management issues in Islamic contracts (overview, main types of risk, differences to risk management in conventional finance, etc.) 2. Basel II for Islamic financial instruments (brief overview on IFSB rules, etc.)3. Risk management of basic financing modes (analysing all basic Islamic financing modes, e.g. Murabaha, PLS modes, with regards to their intrinsic risk and their management, as well as their Basel II risk weights etc.)4. Risk management of Islamic funds (market risk, credit risk, ) 5. Risk management of Sukuk (market risk, credit risk, operational risks, ) 6. Risk management of Islamic structured productsD. OutlookE. Annex1. Bibliography2. Index
Book Details:
- Author: Kabir Hassan
- ISBN: 9780470689578
- Year Published: 2009
- Pages: 480
- BISAC: BUS112000, BUSINESS & ECONOMICS/Islamic Banking and Finance
About the Book and Topic:
The standardization of Islamic financial products is currently evolving, both for Islamic derivatives standardization and financial engineering)2. Sukuk (Islamic bonds, current trends and issues in the market, standardization etc.)3. Islamic funds (incl. specific hedge-fund practices, Islamic REITs, Islamic PrivateEquity funds, brief overview on market indices)4. Islamic structured products (all currently existing types of Shariah-compliant structuring principles, example products, etc.)C. Islamic risk management 1. Risk management issues in Islamic contracts (overview, main types of risk, differences to risk management in conventional finance, etc.) 2. Basel II for Islamic financial instruments (brief overview on IFSB rules, etc.)3. Risk management of basic financing modes (analysing all basic Islamic financing modes, e.g. Murabaha, PLS modes, with regards to their intrinsic risk and their management, as well as their Basel II risk weights etc.)4. Risk management of Islamic funds (market risk, credit risk, ) 5. Risk management of Sukuk (market risk, credit risk, operational risks, ) 6. Risk management of Islamic structured productsD. OutlookE. Annex1. Bibliography2. Index
Islamic Finance has been expanding at breakneck speed globally during the past few years and shows significant product innovation and sophistication. This includes a broad range of investment products, which are not limited to the complete replication of conventional (i.e. non-Islamic) fixed-income instruments, derivatives and fund structures. Shariah-compliant products have proven to be attractive also to Non-Muslim investors and offer many opportunities even for non-Islamic institutions. This is due to the fact that up to 50 percent of the total savings of the Muslim population worldwide are projected to be invested in a Shariah-compliant way within the next five years, making it an extremely fast growing business worldwide. In addition the current supply of attractive Islamic products is still far smaller than the existing demand by Islamic banks, insurances (“Takaful”) and other Islamic institutions, which further fuels its global market growth. Islamic instruments are also highly useful alternative investments for the diversification of portfolios, as they have low correlation to other market segments, allow the selective underweighting of particular sectors and seem to be relatively independent even from market turbulences like the Subprime crisis. As a consequence, the increasing standardization for derivatives and Sukuk (Islamic bonds), as well as the growing liquidity and organization of the Islamic capital market offer many opportunities to innovative investors. Given a total population of more than a billion Muslims worldwide and an estimated industry size of USD 250 billion, Islamic finance is a serious business for Muslims and non-Muslims alike.
HOT TOPIC: Huge global interest in Islamic finance. The subprime crisis did not affect Islamic finance as strongly as other segments of global financial markets and Islamic indices have outperformed conventional indices in the past 12 months by 10%. PRACTITIONER APPROACH only book to be written on financial engineering in islamic finance by a practitioner. AUTHOR REPUTATION: Author writes widely on Islamic finance in the key Islamic press and on the web.
About the Author
Michael Mahlkneckt, Vienna, Austria is Director of Consulting for Deltahedge. He has published numerous books and articles on Islamic finance including Islamic capital market instruments and risk management issues Wiley VCH, Islamic structured products on the rise, Islamic shorting: Trend or hype and Islamic Capital Markets: A growing area for investments. He has a Degree in Economics from the University of Innsbruck; worked for the Austrian Financial Market Authority (FMA) in the International Relations & Risk Management policy unit (Basel II), as a Senior Analyst for risk management & data management software provider AIM Software, and as a freelance risk manager for the State-owned Austrian AWS bank, modelling credit risks and risks related to Private Equity funds.