AS A CAPITAL MARKET INSTRUMENT, THE PLACE OF SUKUK IN THE WORLD AND TURKEY: AN APPLICATION ON S&P SUKUK INDEX AND CONVENTIONAL BOND INDEX

The subject of the study is sukuk financial instrument which is issued to the capital markets for funding. In this study, examining this financial instrument and emphasizing its role in the global economy, informing about the functioning of the sukuk market in Turkey, analyzing the relations between traditional bond indices and sukuk indices econometrically are aimed. For this purpose, the long term relations between the S&P US Treasury Bond Index and the DJ AAA Sukuk Total Return Index as well as relations between the S&P 500 Bond Index and the S&P Global High Yield Sukuk Index were analyzed using the VECM while the short-term relations were tested by Engel-Granger Causality Analysis. The results indicated that both of US government bonds and private sector bond indices affect global sukuk indices