Islamic Mortgage Securities (Mortgage Sukuk) Risks and Some Methods for Hedging

Mortgage Backed Securities (MBS) are financial instruments that uses for banks financing in most countries. With ratifying Security Market Law in 2002, legal infrastructure provided for issuing such financial instruments in Iran. In designing any financial instrument, different aspects of financial design, jurisprudence, law, risk management, accounting and tax effects should be investigated.This article is based on exploratory methodology and aimed to answer this question: what are risks and hedging methods for Islamic mortgage securities? Therefore, we will analyze various risks of Islamic mortgage securities and some methods for hedging in term of Islamic economics in according with investors and originators.