IDEAS home Printed from https://ideas.repec.org/a/bor/bistre/v18y2018i2p91-100.html
   My bibliography  Save this article

Investment strategies with rebalancing: How could they serve Sukuk secondary market?

Author

Listed:
  • Rida Ahroum
  • Othmane Touri
  • Fatima-Zahra Sabiq
  • Boujemâa Achchab

Abstract

Although the Sukuk market is rapidly growing, it still faces many challenges. The “Buy and hold” effect slows down this growth as it freezes the exchange of these assets in the secondary market. In this perspective, this paper introduces an approach aiming at improving Sukuk exchange by using the diversity of the investors' risk profiles. Through this study that applies several investment strategies based on rebalancing, we demonstrate that these strategies have the potential to boost the Sukuk market's growth. This is actually due to the fact that the investor can choose among these strategies according to his investment profile and his market anticipation. However, this approach's effectiveness is conditioned to the adherence of a large number of investors. In terms of contribution, this paper fills the gap in the literature by introducing a pragmatic approach to reduce the impact of the “Buy and Hold” effect on the Sukuk market.

Suggested Citation

  • Rida Ahroum & Othmane Touri & Fatima-Zahra Sabiq & Boujemâa Achchab, 2018. "Investment strategies with rebalancing: How could they serve Sukuk secondary market?," Borsa Istanbul Review, Research and Business Development Department, Borsa Istanbul, vol. 18(2), pages 91-100, June.
    • Handle: RePEc:bor:bistre:v:18:y:2018:i:2:p:91-100
    as

    Download full text from publisher

    File URL: https://www.sciencedirect.com/science/article/pii/S2214845017300534
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Sukuk; Buy and hold effect; Investment strategy; Rebalancing; Secondary market;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • C49 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Other
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • D49 - Microeconomics - - Market Structure, Pricing, and Design - - - Other
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bor:bistre:v:18:y:2018:i:2:p:91-100. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ahmet Palu (email available below). General contact details of provider: https://edirc.repec.org/data/rdisetr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.