Wednesday, October 19, 2011
State of Israel Bonds
I have some. It yielded about 10% last year. Israel's credit rating has been upgraded recently and the bonds reacted nicely, thank you for asking.
These days, Israel sells bonds for only one reason: to maintain credit lines open so they can be tapped when we really need money.
But what about a politically motivated investor boycott against Israel, for example by pro-Palestinian European countries such as Norway or Belgium? There is enough money in the world that is seeking Israeli diversity for its investment portfolio. Israel's last offering in Europe, in March 2010, demand totaled €13 billion, the offer was €1.5 billion. There's a lot more demand for Israeli bonds than we need.