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Israel Jubilee Issue Bonds

Thursday, June 27, 2013 - 8:44 AM
The current rate for the Israel 5-year Jubilee Issue Bond is 2.59%  The 10-year Bond rate is 4.08%.

Sales Period: Valid Jun 15, 2013 through Jun 30, 2013.

Minimum Subscription: $25,000 and increments of $5,000. Issued on the 1st and 15th of each month. Interest paid every May 1st and November 1st.

Israel Bonds | Development Corporation for Israel | Not Just A Bond. A Bond With Israel.
ShorebreakShorebreak2,675 posts since
Apr 6, 2010
Rep Points: 14,523
1. Thursday, June 27, 2013 - 9:07 AM
Israel Bonds??  Are they insured??  What if Israel doesn't fare too well with her enemies, what happens to those bonds?   I won't even purchase CDs from Puerto Rico and they are supposed to be a part of the US.  What are we coming to with all of these foreign investments being offered??  I think it's time to buy a bigger jumbo sized mattress!
paoli2paoli21,400 posts since
Aug 10, 2011
Rep Points: 6,132
2. Thursday, June 27, 2013 - 9:19 AM
Re: paoli2 @ 1. Thursday, June 27, 2013 - 9:07 AM

"What if" paoli2?

The Ohio treasurer’s office has more than doubled its holdings in Israeli-issued bonds with a recent $42 million purchase that marks the largest-ever single investment in the bonds by a U.S. state.

The state treasury’s portfolio now includes a total investment of more than $80 million in Israel Bonds.

Ohio invests $42M more in popular Israel Bonds | The Columbus Dispatch

Bonds issued by the State of Israel are rated A by the major rating agencies. There has never been a default by the State of Israel on one of its bonds and the single A rating is considered investment grade.
ShorebreakShorebreak2,675 posts since
Apr 6, 2010
Rep Points: 14,523
3. Thursday, June 27, 2013 - 9:27 AM
My father has done very well with Puerto Rico municipal bonds, which are federal tax-free. And Puerto Rico, because of the reforms taken by the previous governor, is in much better financial shape than many of our state governments.

About Israel's jubilee bonds. Israel has existed since 1948. It has always managed to defend itself from its enemies. I don't believe the risk of Israel defaulting on its obligations is high, certainly no higher than many some of our municipal bonds and many a corporate bonds.

If you cannot stand any risk whatsoever, then don't invest in bonds. But I would remind readers that there is such a thing as "inflation risk," i.e. the erosion of your purchasing power over time because the yield on your devalued dollars isn't high enough to compensate for inflation.
WilWil242 posts since
Feb 26, 2010
Rep Points: 1,285
4. Thursday, June 27, 2013 - 9:34 AM
I am so happy to read that some of you feel confident about purchasing foreign investments.  Unfortunately, I don't share your confidence.   It is nice Ohio wants to help the economy of Israel by buying their bonds. I just don't feel this is something I am ready to do at this time.  To each his own.
paoli2paoli21,400 posts since
Aug 10, 2011
Rep Points: 6,132
5. Thursday, June 27, 2013 - 12:11 PM
I would buy these Israeli bonds if the 4.08% was for 5 years intead of 10.

Anyone here buying them?
loulou552 posts since
Aug 3, 2010
Rep Points: 3,431
6. Thursday, June 27, 2013 - 12:34 PM
Lou; I'd consider purchasing some of these to further diversify the fixed-income portion of a portfolio. As of now, it looks a little late to get into this issuance as it only goes to the end of June. I'm curious at what rates the new Jubilee Bonds will come out at on July 1, 2013.
ShorebreakShorebreak2,675 posts since
Apr 6, 2010
Rep Points: 14,523