Israel to launch index of North American real estate companies

25 bonds totaling $4.1B will be included

New York /
Jun.June 21, 2017 04:40 PM

Beginning in July, a new index comprised of bonds issued by North American real estate companies will trade on the Tel Aviv Stock Exchange.

The exchange’s board of directors approved the measure earlier this week.

The Tel Bond Global index will include 25 bond series issued by 18 companies and totaling 14.5 billion shekel, or $4.1 billion. While the index won’t be limited to real estate companies or North American ones, at present all 18 issuers fit that category. The largest of the group is Joel Wiener’s Pinnacle Group TRData LogoTINY, weighing in at 11.1 percent of the index, across three bond series.

The remaining companies include New York heavyweights like Extell Development, Related Companies and Jeff Sutton’s Wharton Properties.

The index will trade at yields above the general corporate bond market in Israel, paying 4.7 percent on an average term of 3.6 years, as of this week. The relatively high yield reflects the spread between coupon rates for foreign and Israeli companies. That spread has been narrowing, and American companies have consistently issued bonds at under 4 percent rates in the past several months, but isn’t expected to close entirely.

The index will begin trading on July 16. [TheMarker]Chava Gourarie


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)
Real estate stocks push up this week as U.S.-China trade tensions ease
Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Democrats' numerous attempts to close the carried-interest loophole have failed
Developers, rejoice: Carried-interest loophole is saved again
Developers, rejoice: Carried-interest loophole is saved again
From left: Jeff Goldberg, CEO of Fairstead, and Will Blodgett, Founder of Tredway (Getty Images, Fairstead)
Fairstead fires back, alleges Blodgett threatened to go “torched earth”
Fairstead fires back, alleges Blodgett threatened to go “torched earth”
From left: Extell's Gary Barnett and JDS Development’s Michael Stern along with One Manhattan Square, The Narrows, and 111 West 57th Street (Extell, JDS Development, Getty Images, The Narrows Condo)
New development sales plummeted 30% in July
New development sales plummeted 30% in July
Queens official Donovan Richards, Larry Silverstein and rendering of Innovation QNS (Queens Borough President, Innovation QNS, Getty)
Queens boro prez turns on industry, rejects Silverstein’s $2B project
Queens boro prez turns on industry, rejects Silverstein’s $2B project
Tavros Capital’s Nicholas Silvers and Charney Companies’ Sam Charney in front of 24-05 thru 24-19 Jackson Avenue in Long Island City (Getty Images, Tavros Capital, Charney Companies, Google Maps)
Tavros, Charney plan 55-story rental on long-stalled site
Tavros, Charney plan 55-story rental on long-stalled site
3100-3124 Atlantic Avenue in East New York, Brooklyn (Google Maps, Getty)
Locals fear homeless shelter king will gentrify East New York
Locals fear homeless shelter king will gentrify East New York
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...