Worth reminding:
"I don’t see other countries showing growth rates like the rate shown by the Israeli economy," Deutsche Bank chief currency strategist Bilal Hafeez. "The shekel will get much stronger against the dollar and euro over the coming year.
"The most significant thing is Bank of Israel intervention in the foreign currency market. We believe that Governor Stanley Fischer's interventions will diminish this year and that the shekel-dollar exchange rate will reach NIS 3.50/$ by year-end." (from Globes)
Israel will seek a benchmark offering of at least €1 billion eurobonds” said Eyal Klein, a former Finance Ministry director for external debt and chief strategist at Israel Brokerage & Investments, said. “This is going to happen sometime this week.”If Moody rating for Israel is so high, and we are able to sell bonds, why am I worried about Ahmedinijad? The markets seem not worried at all.
Israel’s gross domestic product grew an annualized 4.4 percent in the fourth quarter after expanding 3% in the previous three months. Bank of Israel Governor Stanley Fischer raised the benchmark interest rate at the end of December by a quarter-point to 1.25%, his third increase since the economic recovery began.
“I expect huge demand and pricing that will match the solid standing of Israel’s economy,” Klein said. The country’s growth rate is among the highest in the Western world, he said. The pricing for the bonds will probably be more than 100 basis points lower than Greece’s last issuance.
5 comments:
I pray that Israel remains peaceful and growing, but markets are lousy predictors of anything, war included. None of those crystal balls are worth a damn. I'm sure people were buying Russian Imperial bonds right up until the day the Tsar abdicated.
K
Note from the picture, it is still a 'Krugerrand', and not a 'Zumarand'.
Something to do with value, I suppose.
Anon.
A Zumarand (like an Obamarand) would only weigh 1/2 oz. but you'd pay for a full oz. Gotta spread the wealth, as the big O likes to say.
K
Markets reflect all the collective available knowledge. Israeli bonds are selling well, so smart people who has money expect Israel to pay back the loan. I doing well yet I know I am not smarter or better informed than the market.
But you have Koko to guide you through the-ahem-investment jungle.
I hear she is bullish on Israeli bonds, but feels the US can only avoid default by repaying with fiat money.
Since the crisis, she has become very interested in the Austrian School of Economics.
Anon.
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