Israel Bonds has reported, in the first 7 months of 2002, record-breaking sales. They have raised nearly $861 million, 32 percent more than the previous year. The Treasury, which sets the interest rates for the bonds, has asked Israel Bonds to raise $1.25 billion by the end of the year, a goal likely to be surpassed if current sales figures hold steady.
Recent successes can probably be explained by the wave of sympathy for Israel generated by the suicide bombings that have horrified the world, and attractive interest rates at a time when U.S. interest rates are at their lowest levels in decades.
Israel Bonds is also attracting individual Jews who would like to support Israel and make money at the same time, although the main purchasers of Israel Bonds remain institutions, including banks, pension funds and organizations with some connection to Israel. The bonds are considered, for all intents and purposes, risk free, partly because Israel has never defaulted on any loan and partly because of the unlikelihood of Washington ever allowing that to happen.
Recent successes can probably be explained by the wave of sympathy for Israel generated by the suicide bombings that have horrified the world, and attractive interest rates at a time when U.S. interest rates are at their lowest levels in decades.
Israel Bonds is also attracting individual Jews who would like to support Israel and make money at the same time, although the main purchasers of Israel Bonds remain institutions, including banks, pension funds and organizations with some connection to Israel. The bonds are considered, for all intents and purposes, risk free, partly because Israel has never defaulted on any loan and partly because of the unlikelihood of Washington ever allowing that to happen.