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June 15, 2018
9:40 pm
Bud
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Good credit rating, third and fourth quarter of 2017 saw some very attractive 3yr rates on CAD and $US. You can get on their update list. They're a direct dealer.

https://www.israelbonds.ca/bonds-rates/

June 16, 2018
6:14 am
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And should you have any concerns about investing in the middle east - fear no more, the oracle himself has spoken -

Calling Israel’s independence “a good day for the world,” Berkshire Hathaway Chairman, President & CEO Warren Buffett hosted an Israel Bonds event in Omaha, Nebraska last week that raised $80 million in Israel bonds investments and intentions to invest.

“I’ve lived through Israel’s entire 70-year history and I believe it is one of the most remarkable countries in the world…I’m delighted to own Israel bonds,” the billionaire and internationally-renowned investor and philanthropist said ...

June 17, 2018
7:29 am
Yatti420
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Interesting.. They aren't greek bonds atleast..

June 17, 2018
8:01 am
Kidd
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If you're buying Israel Bonds, go SHORT. They may not be around for the LONG term.

At least North Korea isn't a nuclear threat any longer. That takes a load off my mind.

Where should i add my commas?

June 17, 2018
9:21 am
Bud
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Standard & Poor's credit rating for Israel stands at A+ with positive outlook. Israel will be around forever. It is a developed country with all the great businesses of the world present and fully supported by the United States and other leading nations. Very safe and secure country. Go see for yourself. We're here to make money.

June 17, 2018
9:25 am
Brimleychen
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Why not just buy CD in USA for FDIC insured product? You can easily get rate over 3%.

https://us.deposits.org/cd-rates.html

June 17, 2018
9:28 am
Bud
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Foreigners can't buy U.S.cds i recall

Israel bonds are priced in Cdn and US dollars

Does fdic insure CAD

June 17, 2018
9:40 am
Brimleychen
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There is no problem for Canadian to buy CD in USA. Just they need to withhold some of interest if you dont provide SSN. If you dont consider foreign country risk, i believ Argentina interest rate is 22% as of last Friday:-)

June 17, 2018
11:14 am
Bud
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Wrong Israel bonds are a legitimate investment that can be bought thru the local israel bond office they are a registered dealer. They've been around for over 50yrs. For sure I want to know all options, don't you. Who cares about some political commentary. I follow this forum to make money I'd buy any debt including islamic if i can make money securely. Habib bank never has deals.

June 17, 2018
3:28 pm
Doug
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Kidd said
If you're buying Israel Bonds, go SHORT. They may not be around for the LONG term.

At least North Korea isn't a nuclear threat any longer. That takes a load off my mind.

Where should i add my commas?  

I would strongly advise against entering into a short position on any government bond. They do not have the liquidity required for such transactions. 🙁

That being said, if what Kidd meant is to keep one's duration short (i.e., effective average term to maturity), that's probably a good idea, only because we're in a rising interest rate environment, not because Israel will cease to exist in the long term. sf-cool

Demographically and economically, Israel has strong fundamentals, akin to, or better than, the likes of India and even some Middle East countries like Saudi Arabia. Geopolitically speaking, that's a different story. sf-wink

Overall, I like that the State of Israel has gone to the trouble of incorporating a wholly-owned Canadian broker-dealer subsidiary in Canada to peddle these bonds to Canadian investors, in particular, Canadian-Jewish expats and dual citizens. Mazel tov! sf-cool

Cheers,
Doug

June 17, 2018
5:34 pm
GR
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I detect an anti-Israel and anti-Jewish bias in some of the comments on this thread. Those type of political comments are out of place and not helpful in a forum where members provide information and suggestions about savings and investments.

June 17, 2018
6:39 pm
Bud
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Israel's GDP per capita recently surpassed Japan.

June 17, 2018
6:46 pm
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hotmony said
Israel's GDP per capita recently surpassed Japan.  

But they still trail Iceland and San Marino by a large margin.

June 17, 2018
7:15 pm
Bud
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Iceland credit rating A
Italy BBB
Israel A+
Ontario A+

June 20, 2018
7:35 am
Pipersierra
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Has anyone bought one of these bonds and put it inside an online broker’s registered account? It says it can be done, just wondering if the broker charges a fee to do it.

June 20, 2018
7:51 am
Norman1
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Brimleychen said
There is no problem for Canadian to buy CD in USA. Just they need to withhold some of interest if you dont provide SSN. …

Normally, there is withholding on the interest. But, under Article XI of the Canada-US tax treaty, most interest paid to Canadian residents is exempt from US tax withholding.

1. Interest arising in a Contracting State and beneficially owned by a resident of the other Contracting State may be taxed only in that other State.

June 20, 2018
8:25 am
Norman1
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Pipersierra said
Has anyone bought one of these bonds and put it inside an online broker’s registered account? It says it can be done, just wondering if the broker charges a fee to do it.  

I'm not sure all brokers would be able to do it. It would depend on their back office system.

I don't think Israel bonds are in the Canadian Depository for Securities clearing system that Canadian stockbrokers use for stocks and bonds. That will mean special handling not unlike that required for holding private corporate shares in registered accounts.

For such private shares, Scotia iTRADE charges $300 for initial setup and $100 per year afterwards!

June 20, 2018
8:34 am
Brimleychen
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Norman1 said
...
Normally, there is withholding on the interest. But, under Article XI of the Canada-US tax treaty, most interest paid to Canadian residents is exempt from US tax withholding.

1. Interest arising in a Contracting State and beneficially owned by a resident of the other Contracting State may be taxed only in that other State.

  

Thanks Norman.

One thing I find it better is that the USD deposit is insured by either FDIC or National Credit Union Share Insurance Fund upto USD 250,000. In Canada, we don't insure USD account.

I use Alaska USA *(https://www.alaskausa.org/current/rates/CertificateRates.asp#m250000)

Very good rate for USD CD. Just drive over to US to open an account.

June 20, 2018
5:55 pm
Norman1
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Brimleychen said

Thanks Norman.

One thing I find it better is that the USD deposit is insured by either FDIC or National Credit Union Share Insurance Fund upto USD 250,000. In Canada, we don't insure USD account.

Some US$ deposits here in Canada are insured.

Federal CDIC and Ontario's DICO don't insure US$ deposits. But, the Deposit Guarantee Corporation of Manitoba and the Credit Union Deposit Insurance Corporation of BC do. sf-smile

I use Alaska USA *(https://www.alaskausa.org/current/rates/CertificateRates.asp#m250000)

Very good rate for USD CD. Just drive over to US to open an account.

I had a look at the Alaska USA consumer certificates. The web page uses the term "dividends" instead of "interest" for the payments. If the payments are dividends for US tax purposes, then there will be a 15% tax withholding under Article X of our tax treaty with the US:

1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State.

2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State; but if a resident of the other Contracting State is the beneficial owner of such dividends, the tax so charged shall not exceed:

(a) 5 per cent of the gross amount of the dividends if the beneficial owner is a company which owns at least 10 per cent of the voting stock of the company paying the dividends;

(b) 15 per cent of the gross amount of the dividends in all other cases.

This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid.

June 20, 2018
7:36 pm
Bud
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Israel bonds uses computershare if that helps

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