Sunday, February 15

Investors: Israel's Private Debt Ratio Beats U.S.

Despite it all, despite terrorism and threats of war, media hammering and political slamming, Israel is still the place to be for financial groups and corporations with no "Zionist" slant, and that wouldn't drop a dime on a bad bet:

From The Ettinger Report:
1. Irrespective of the global economic meltdown, the war on Palestinian terrorism, the Iranian threat, regional instability and political uncertainty, Standard & Poor (S&P) has left Israel's credit rating unchanged at A and the country forecast rating [has been sustained] as "stable." The rating was approved in all three criteria: Shekel debt, foreign currency debt and transfer and convertibility assessment, which remains at AA (Globes, January 20, 2009).

2. Israel's private debt-private income ratio is 55% (private Israeli
debt amounts to half of private income), compared with 170% in the US, 180% in Britain and almost 200% in Ireland. While the ratio of government debt-gross domestic product is a critical element of national economy, the private debt/income ratio has gained in importance since private consumption has become a crucial engine catapulting or devastating national economy (Yediot Achronot, Sever Plocker, Feb. 6).

3. $500MN raised - via an 11 year bond issue led by J.P. Morgan and Citigroup - by the Israel Electric Company, reflecting confidence in Israel's long-term economy (Globes, Jan. 26).

4. The New Mexico-based $34BN Thornburg Investment Management and Canada's PAW Capital have increased their holding in Israel's Amdocs and Radware from 4.5% to 10.1% (which amounts to $400MN in Amdocs) and from
5.1% to 7.3% ($8.2MN in Radware) respectively (Globes, Jan. 19). Britain's Axell Wireless acquired Israel's DekoLink for a few million dollars (Globes, Jan. 28).

5. Microsoft led a $24MN round by Israel's N-Trig (Globes, Jan. 13). EMC led a $15MN round of private placement by Israel's Varonis. EMC was joined by Accel Partners and other investors (Globes Jan. 23). Mexico's Arancia (food additive) participated in an $11MN round by Israel's Enzymotec (Globes, Feb. 4). Qualcomm is investing $7MN in Israel's Modu (Globes, Jan. 27). Germany's Hasso Plattner Ventures led a $6MN first round by Israel's BrightView (Globes, Jan. 28). Samson Ventures invested $2MN in Israel's SteadyMed (Globes, Jan. 29).
In short: money talks, bs anti-Israel hype walks.

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