Saturday, February 16, 2008

Sharia bonds

Buy, Pepe, buy! Sharia-compliant bonds were designed to get round the ban on paying interest – "riba" in Islamic law. The Koran says it is sinful to make money from money. Unlike a conventional bond which is debt-based, a "sukuk" is asset-based. Instead of receiving interest, bond holders receive "rent" on the asset, thereby complying with sharia law. Perfect for you.

1 comment:

Arelcao Akleos said...

How long before we see a Wahab funded Institute for Mathematical Sharia Financing at ye not so olde Harvard Business School?