They want to make it more an equity instrument and less like a loan. Think about the difference between a baby bond and a term preferred stock, i.e., a preferred stock that has a maturity date. To comply with Islamic law, the lender has to have some skin in the game. I think the current form of these bonds is that they move the debt into some sort of a trust, so that the party who is "lending" the money, i.e., the party buying the bond, is not really lending money. They put it into a trust, and the trust becomes the lender, or the buyer of the bond. So they never receive any interest. They receive something else. The receive "distributions" from the trust they invested in. It's form over substance. The investor is not exposed to the risk of an equity investment. The trust in which they invested stands in the position of a lender or bondholder, and they have a beneficial interest in the trust. It's plausible deniability. "We only invested in the trust. We have no control over what the trustee is doing with the money." And so some Muslim religious authorities are saying, Yeah, riiiiiiiiight. Not buying that, Dude. Literally. Not buying that bond. LOLOL
they have been dealing with money aince the seventh centry, i don't think they are less smart in finance than anyone on et.
Is there something in this thread that implies that someone thinks "they are less smart in finance than anyone on et"?