Перейти к содержанию сайта
Diaspora Bonds
Report

Diaspora Bonds

Patriotism or Profit?

SSRN, 2024


Editorial Rating

8

Qualities

  • Comprehensive
  • Analytical
  • Innovative

Recommendation

“Diaspora bonds” gain the attention of overseas nationals eager to support their homelands, even at returns lower than those of conventional bonds. Israel is probably the best-known issuer of diaspora bonds. The dynamics of Israel’s financing model suggest a way forward for GDP-indexed bonds – countercyclical debt instruments that would pay more to investors in good economic times and less during downturns. Finance experts Michael Bradley, Irving Arturo De Lira Salvatierra and Mitu Galati analyze the potential impacts of these bonds, particularly for developing economies, in this thorough, insightful report for investors and financial professionals.

Take-Aways

  • “Diaspora bonds” attract investors, despite the sovereign debt’s lower yields. 
  • The Israeli diaspora bond program suggests that other nations could construct a countercyclical credit offering. 
  • Israel’s diaspora bonds show a lower yield in times of crisis and a higher yield in times of economic vigor. 

About the Authors

Michael Bradley is a professor at the Fuqua Business School at Duke University. Irving Arturo De Lira Salvatierra is with IO Quantum. Mitu Gulati is a law professor at the University of Virginia’s Law School.


Comment on this summary or Начать обсуждение