Gov't of Israel bond rates up | General comparisons | Discussion forum

Up to 3.4% for 15 year CAD bond over 25K. Not liquid like other bonds. Not supposed to sell.

Israel bonds are low risk. But, they are risker than Government of Canada bonds.

Fitch long term rating of A+ estimates risk is around that of provincial bonds and large Canadian bank deposits:

Norman1 said
Israel bonds are low risk. But, they are risker than Government of Canada bonds.

Fitch long term rating of A+ estimates risk is around that of provincial bonds and large Canadian bank deposits:

Fitch Long Term Rating
AAA	Australia Switzerland Germany USA
AA+	British Columbia, Province of Canada
AA	France Saskatchewan, Province of
AA-	Bank of Montreal Bank of Nova Scotia Canada Life Assurance Company Canadian Imperial Bank of Commerce Royal Bank of Canada Toronto-Dominion Bank Alberta, Province of Ontario, Province of Quebec, Province of United Kingdom
A+	HSBC Bank Canada National Bank of Canada China Israel
A	Manulife Financial Corporation
A-	Brookfield Asset Management TC Energy Corporation TransCanada Pipelines Limited
BBB+	Enbridge Inc. Rogers Communications TELUS Corp.

  

Thanks, Norman. Yeah, I knew Canadian and U.S. government bonds were rated higher, but was speaking more philosophically. 🙂

In any case, I hadn't realized Canada lost its AAA credit rating. I knew that B.C. did, but not Canada.

Cheers,
Doug

Loonie said
Is there somewhere online wher one can look up these kinds of ratings, or is it by subscription?

One will need a subscription to access the full reports, including detailed rationale.

However, most of the rating agencies will allow access to just the rating and some detail, either anonymously or after free signup.

Loonie said
…
For those who just want to get their feet wet, the five year eMazel Tov bonds at 2.83%CDN or 2.63 USD are potentially attractive, with a minimum $36 investment and maximum $2500 purchase per month might be useful. What else is there in bonds in the same or better risk category that pays better? I ask because I simply don't know what's out there or where to look, so these looked OK to me.

I suspect those eMazel Tov (Good Luck) bonds are intended to be given as gifts or stocking stuffers. The 2.83% promo rate for a five-year bond is in junk bond territory. No bond issuer with an investment grade debt rating, like A+, needs to pay that kind of interest.

Unlike Israel, companies don't usually issue bonds continuously. One usually needs to contact a broker (full service or discount) to see what bonds they bought when issued and have in inventory now to sell.

I just looked on Scotia iTRADE:

1. Province of Manitoba strip bonds, DBRS rating A(high), that mature 2026/09/05 are available with a yield to maturity of 1.635% per annum, before commissions.
2. Riskier Brookfield Asset Management 4.82% bonds, DBRS rating A(low), maturing 2026/01/28 are available with a yield to maturity of 2.079%, before commissions.

In contrast, Government of Canada 1% bonds, DBRS rating AAA, maturing 2026/09/01 are being offered with a yield to maturity of 1.197%, before commissions.

That's correct. I meant the rate is in junk bond territory and not the eMazel Tov Israel bonds themselves.

Yes, investment grade five-year bonds through iTRADE yield less than 2.83%. An investment grade bond paying a junk bond rate is very rare. The investment grade bond market is very efficient because it is dominated by institutional investors, like pension funds and insurance pools.