Why Islamic bonds are hot these days

Financial Times:U.S. treasuries have rallied substantially year to date, driving down their yield to what some believe to be bubble-like levels.

Yet there's another fixed income market booming right now -- Sukuk's, or Islamic bonds. Sukuk's don't technically pay interest, they rather pay a portion of cashflow, similar to a bond yield, related to an underlying investment in order to be compliant with Islamic law....continue