Islamic Capital Markets: Theory and Practice, 1st Edition

  • Published By:
  • ISBN-10: 1118247167
  • ISBN-13: 9781118247167
  • DDC: 332.042091
  • Grade Level Range: College Freshman - College Senior
  • 888 Pages | eBook
  • Original Copyright 2012 | Published/Released June 2014
  • This publication's content originally published in print form: 2012

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The book deals with Islamic capital markets combining both advanced finance theory and practice. The author describes institutions, instruments, and the regulatory framework of Islamic capital markets, as well as the notions of money, central banking, and economic growth theory and their role in Islamic capital markets. The book discusses the development of Islamic capital markets in the market leader - Malaysia -- as well as other leading financial centers. The book covers sukuks and stocks in great depth, emphasizing valuation, duration, convexity, immunization, yield curves, forward rates, swaps and risks including yield risk and credit risk. It analyzes stock markets, stock valuation, price-earnings ratio, market efficiency hypothesis, and equity premiums. The book addresses uncertainty in capital markets, portfolio diversification theory, risk-return trade-off, pricing of assets, cost of capital, derivatives and their role in hedging and speculation, the principle of arbitrage and replication, Islamic structured products, the basic concepts behind sukuks' issuance such securitization of assets, and the financing of large projects. Examples of sukuks' issuance by government and private issuers are illustrated. The book discusses mutual funds, trust funds, and exchange traded funds. Performance evaluation of funds and value-at-risk are described. The purpose of the book is to provide students and practitioners with analytical tools of Islamic capital markets and a guide on investment in Islamic assets, risk management, and structure of Islamic products. The book discusses the advantage of Islamic capital markets and the prospects for their development. It enables readers to have full knowledge of Islamic capital market with exposure to finance theory and real world practice.

Table of Contents

Front Cover.
Half Title Page.
Title Page.
Copyright Page.
Glossary of Arabic Terms.
1: Islamic Capital Markets: Tools of Securities Investment, Asset Pricing, Risk Management, and Portfolio Performance.
2: Capital Theory and Islamic Capital Markets.
3: Portfolio Theory and Risk–return Tradeoff.
4: The Analytics of Sukuks.
5: Islamic Stocks.
6: The Cost of Capital.
7: Asset Pricing under Uncertainty.
8: The Consumption-Based Pricing Model.
9: Futures Markets.
10: Stock Index Futures.
11: Interest-Rate Futures Markets and Applications to Sukuks.
12: Basic Principles of Options.
13: Swaps.
14: Mutual Funds.
15: Portfolio Performance and Value-at-risk.
16: Money and Capital Markets.
17: The Banking System.
18: The Demand for Money.
19: Capital Markets and the Macroeconomy.
20: Regulations and Institutions of Capital Markets and Islamic Structured Finance.
21: Institutions and Regulations of Capital Markets.
22: Institutions and Instruments of Islamic Capital Markets.
23: Sukuks.
24: Islamic Structured Products.
About the Author.