islamic fixed income brochure jun2013

ISLAMIC FINANCE GATEWAY

ISLAMIC FIXED INCOME SECURITIES – SUKUKTHOMSON REUTERS EIKON – ISLAMIC FINANCE


ISLAMIC FIXED INCOME SECURITIES – SUKUK THOMSON REUTERS EIKON – ISLAMIC FINANCE 3

A COMPREHENSIVE GUIDE TO ISLAMIC FIXED INCOME SECURITIES – SUKUKThe methods of assessing the quality of a Sukuk are almost exactly the same as for conventional bonds. But Shariah sensitive investors and even regular bond investors require a wider set of data points to be assured of Shariah-compliance and understand the particular risks associated with this instrument.

Thomson Reuters Eikon offers comprehensive information coverage for the Islamic securities universe, while providing a detailed overview of the broader asset classes and indices related to Shariah-compliant investment and trading. Users get a macro overview of the performance, risk and returns associated with Sukuk in conjunction with global equity and fixed income benchmarks. The unique benefits of Thomson Reuters Eikon:

• Unique Search filtering criteria – Search the whole universe of Sukuk with criteria for specific characteristics including AAOIFI Compliance, Country of Risk, Structure type and many more.

• Assess Sukuk against benchmark indices – Thomson Reuters offers a vast range of Islamic Indices including a set of Islamic Fixed Income indices unique to the market, including the Thomson Reuters Global Sukuk Index covering a universe of international USD Sukuk and the Thomson Reuters Bond Pricing Agency Malaysia (BPAM) Sukuk and Fixed Income Index series covering the Malaysian fixed income markets with 108 indices.

• Sukuk specific content – Unique to Thomson Reuters, access deep content on an instrument level in one ‘Sukuk Specific’ view with no need to consult other sources (i.e. prospectus). The set of content contains Risk, Shariah and Sukuk specific information.

• Indigenous benchmark for pricing Islamic instruments including Sukuk – Since no indigenous pricing of Islamic instruments was previously available, Thomson Reuters worked in conjunction with the industry to develop the Islamic Interbank Benchmark Rate, positioned as a key benchmark rate for the Sukuk market.

• Sukuk News from different angles – Thomson Reuters is the leading news source in Islamic finance, offering news coverage from different angles covering everything from market news to industry developments.

FEATURES DETAILS

Islamic Securities/ Sukuk View

The Islamic Securities/Sukuk View in Thomson Reuters Eikon is a 360° Overview covering all features related to Sukuk and allows users to assess the broader interplay between Sukuk as an asset class and global macro themes via asset class and index comparison in each view (i.e. Conventional benchmarks are also utilized).

The view sorts the relevant information in various tabs.

• “Overview” of the market• Browse by country or international “Instruments” and navigate

to the Single Bond View for Sukuk specific instrument information• Access “ News & Events”• Get quick links to useful “Market Data & Tools”• View the “New Issues Library” and access Sukuk League tables

Islamic Debt Speedguides

Access a range of instruments organized into chains for easy browsing and analysis with real-time data.

Government and Corporate Bonds Search

Islamic Sukuk specific information can be searched from the ‘Advanced Search’ functionality under the Government and Corporate Bonds Search on Eikon. This provides the client with flexibility in searching and filtering through the Islamic sukuk content.

Islamic Fixed Income Indices

• Thomson Reuters Global Sukuk Index, the independent and transparent benchmark for investors seeking exposure to Sukuk fixed income investments

• Thomson Reuters Bond Pricing Agency Malaysia (BPAM) Sukuk and Fixed Income Index series covering the Malaysian fixed income markets with 108 indices


4 ISLAMIC FIXED INCOME SECURITIES – SUKUK THOMSON REUTERS EIKON – ISLAMIC FINANCE

OVERVIEWUsers get a 360° view of Islamic securities/Sukuk markets on one page by country or worldwide, covering:

• Sukuk Benchmarks (+Graph)• Top Benchmarks• MENA/ASIA Benchmarks• Sukuk Indices (+Graph)• Most Liquid Sukuk• Eurobond Sukuk• Sukuk News• Quick Links to more content

From this page the user can navigate through tabs for a deep dive on the instrument level, get more news & events, access market data & tools, search the new issues libraries of Thomson Reuters and IFR and access real-time data.

ISLAMIC SECURITIES/SUKUK VIEW

INSTRUMENTSUsers can search/filter the full universe of Sukuk by various criteria and create their own watch list:

• Issuer Name• Coupon Type• Currency• Maturity Term• Maturity• Ratings• Amount Outstanding• Issue Date• Yield• OAS• Issued As• and access “More Search”

for a vast selection of user defined search criteria



SUKUK SPECIFIC VIEWNavigate from the “Instruments” tab or through search functionalities to any instrument and access the Single Bond View > Sukuk Specific tab. Sukuk investors get a set of information specifically relevant to them.

NEWS AND EVENTSAllows users to see Sukuk and Fixed Income news for each country or worldwide from variety of angles through a simple country navigational tab on top:

• All Sukuk News• Sukuk Polls and Table• Sukuk New Issues News• Islamic Finance Events• Fixed Income Top News

Sukuk Information• AAOIFI Compliance • Structure Diagram

Availability• Sukuk Obligor Name &

Party ID• Trust Assets• Use of Proceeds• Market Conventions &

Covenants• Guarantee Information

Risk Information• Structure Type• Country of Risk• Risk Classification• Risk Factors

Shariah Information• Shariah Board

and Scholars• Fatwa• Shariah-Compliance

Opinion



MARKET DATA AND TOOLSThe user has access to related tools such as charts, calculators, models and views and quick links to global and local market data, fee liable services and trading platforms.

NEW ISSUES LIBRARYAllows users to search for new issues by:

• Region• Issuer Name• Maturity Term• Asset Type• Country of Issue• Domicile of the Issuer• Underwriter Name• Currency of Issue• Foreign Bond Types• Announced in last <7, 7-14,

15-30 days

SUKUK LEAGUE TABLEAllows users to access the “Global Bonds – All international Islamic finance Debt” league table (starting from Q1 2013) ranked by:

• Proceeds Amount + Overall allotment sold ($ Millions)

• Number of Issues• Market ShareAnd get a graphical display by volume and number of deals.

The tables can also be accessed through speedguides <ISL/LEAGUE> by Manager or Industry.

Further, users can filter by “New Issues Re-Opened” and “New Issues: Issued” and have access to League Tables.

REUTERS/Amr Dalsh



ISLAMIC DEBT SPEEDGUIDE

Access a range of instruments through the Islamic Debt speedguide. Organized into chains for easy browsing and analysis with real-time data, including:

• Sukuk Indices• Sukuk Benchmark Curve• Sukuk by Country, Most Liquid, AAOIFI,

Shariah Structure• Sukuk League Tables• Sukuk News



GOVERNMENT AND CORPORTAE BONDS SEARCH

ISLAMIC SUKUK CONTENT IN ADVANCED SEARCH CRITERIAIslamic Sukuk specific information can be searched from the ‘Advanced Search’ functionality under the Government and Corporate Bonds Search on Eikon. This provides the client with flexibility in searching and filtering through the Islamic sukuk content.Criteria to be selected are:

• AAOIFI Compliance• Exchange Name• Fatwa/Islamic Juristic Opinion • Note Type• Risk Classification• Shariah Opinion • Structure Diagram Available• Sukuk Country of Risk• Sukuk Structure Type SUKUK SEARCH BY STRUCTURE TYPE

You can search by Sukuk Structure Type, a critical search feature for our users. Add the criteria ‘Sukuk Structure Type’ to the search criteria list in the Government and Corporate Bonds Search on Eikon.



Pricing evaluations are produced using two primary methodologies: Model and Dollar Pricing. Most issues priced by the model approach incorporate a benchmark for each market, credit spreads and other variables. Dollar pricing is applied mainly to issues that are unique in their structure or to high–yield securities particularly when the issuer of those securities has defaulted on a bond or has fallen below investment grade. All issues are individually priced and inputs include quotes from the primary dealer and other market makers, and traded prices in the security.

The index is dollar denominated and rules for inclusion will be Sukuk with amount outstanding of not less than $100 million and above.

ISLAMIC FIXED INCOME INDICESTHOMSON REUTERS GLOBAL SUKUK INDEXThe Thomson Reuters Global Sukuk Index is an independent and transparent benchmark for investors seeking exposure to sukuk (Shariah-compliant) fixed-income investments, to be used to monitor the performance of the sukuk market.



THOMSON REUTERS BOND PRICING AGENCY MALAYSIA BOND AND SUKUK INDICESThomson Reuters Indices has teamed up with Bond Pricing Agency Malaysia (BPAM) to provide the most comprehensive range of Malaysian Fixed Income and Sukuk benchmarks available. The indices combine BPAM’s extensive experience of consistent and market neutral valuations with years of index calculation experience at Thomson Reuters.

The new family of indices includes 108 Malaysian Ringgit Sukuk and bond indices comprising:

• 36 Thomson Reuters-BPAM Malaysian Sukuk Indices

• 36 Thomson Reuters-BPAM Malaysian Sukuk Indices

• 36 Thomson Reuters-BPAM Malaysian Bond Indices

• 36 Thomson Reuters-BPAM All Bond and Sukuk Indices

covering 778 issues, in six bond classes, archived back to 2007 and have total market capitalization of MYR583,624 million (US$182 billion).

Highly liquid index variants which feature only the top 5 bonds by volume are also available, making them ideal for use as investment products.

Visit thomsonreuters.comFor more information, contact your representative or visit us online. © Thomson Reuters 2013. All rights reserved. 9363760 0613.


FOR MORE INFORMATIONSend us a sales enquiry at: [email protected]

Read more about our products at: thomsonreuters.com/islamic-finance/

Find out how to contact your local office: thomsonreuters.com/about_us/locations/

Access customer services at: financial.tomsonreuters.com/customers

http://thomsonreuters.com

mailto:Islamic.finance%40thomsonreuters.com?subject=

http://thomsonreuters.com/islamic-finance/

http://thomsonreuters.com/about_us/locations/

http://financial.thomsonreuters.com/customers

islamic fixed income brochure jun2013

Economy & Finance