Earn 8%+ with Israeli Bonds

by Evan Liberman on February 24, 2012

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Wise Money Israeli is excited to share with you a unique, secure investment opportunity. While 5-year U.S. bank CD rates are currently earning 1%, some highly rated Israeli corporate bonds are earning 8% and above. Remember, a diversified portfolio consists of domestic holdings and international securities, as well as different asset classes, including bonds. Solid, highly rated bonds give you the security of fixed income and a return of your initial investment.

The following bonds are all rated A- or above by the international rating agencies, and like all bonds, guaranteed principal and interest payments per its payment schedule. Bonds on the Tel Aviv Stock Exchange, using an Israeli brokerage account, can be purchased and sold online, with very low commissions, just as stocks are purchased.

There are three types of interest-rate payments for Israeli bonds: fixed-rate, adjustable-rate, and inflation. Learn more about the differences in our article Solid Bonds – Higher Yields. The Duration of the bonds below is relatively short, so you’re less exposed to bond price fluctuation due to interest rate changes.

When purchased during U.S. business hours, there are no bond minimums (you can buy a single bond for $1), and it can be sold before maturity during any trading day (need not hold until term). Contact Wise Money Israel for more information on how to invest in these Israeli bonds.

We think the opportunity to invest in Israel, gain exposure to the shekel and economy here, and make 8% annual return on your money from solid bonds is an opportunity not to be missed.

Learn more about opening an Israeli brokerage account remotely here.

Solid A-rated Corporate Bonds

table last updated on February 21, 2012

Corporation Bond Series Type Annual Yield to Maturity (YTM) S&P Rating Moody Rating Maturity Date
Alliance 2 Fixed-rate 8.6%   A3 8/31/16
Delek Yisrael 4 Fixed-rate 10.2%   A2 5/1/16
Discount Investments 9 Fixed-rate 9.2% A- A1 11/30/18
Koor 10 Fixed-rate 9.2% A- A2 9/16/17
Aspen Group 2 Fixed-rate 8.9%   A3 12/1/16
Vitnia 3 Fixed-rate 8.3%   A3 9/10/17
Damri 23 Fixed-rate 8.0%   A2 6/30/16
Global Wings 1 Fixed-rate 10.0% A-   11/30/20
Darban 5 Fixed-rate 8.0% A- A3 7/6/15
Jerusalem Economic 9 Inflation-indexed 10.3% A- A3 10/31/17
Wings 4 Adjustable-rate 13.5% A-   8/31/16

Update [Oct. 3, 2014]: Please note the table below, especially yields, were listed as of the writing of the article in February, 2012. Obviously prices and yields change over time, so the yields are not correct anymore. Please check with the Tel Aviv Stock Exchange website or Wise Money Israel to obtain current yields.

Many of the bonds yielded above 8%/year during this period. Therefore current yields are lower. Please see this Hebrew-translated chart to see what the bonds below yielded between Feb. 24 2012 and Oct. 3, 2014

Historical yield of selected bonds

Click to Enlarge: Historical yield of selected bonds

{ 5 comments… read them below or add one }

Jordan Goodman, M.D. May 10, 2012 at 10:23 PM

Having trouble with my Schwab and Morgan Stanley bond agents buying me Israeli bonds…they say it’s “nearly impossible for them to do”…any suggestions, or phone # they can use buy me the bonds? [702-228-9292]

Sherrie Abril October 9, 2012 at 9:55 PM

Please send me a phone number to contact you.

Jordan Goodman, M.D. March 8, 2013 at 9:26 PM

How do I purchase such bonds…having difficulty with local investment agents…

Thomas Mccord April 11, 2013 at 8:51 PM

I thank G-d for this

David B. Jones December 21, 2015 at 9:45 PM

How to invest? Where?

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