The Seller and the Liquidity Question
Israel Bonds' specialized sales channel and limited marketability belong in a complete pension review.
Israel Bonds are offered in the United States through Development Corporation for Israel, a registered broker-dealer. The specialized sales channel and the bonds’ limited marketability are relevant to execution, liquidity, and due diligence.
The sales channel
Development Corporation for Israel underwrites and sells the securities in the United States. Aon’s ATRS memo separately notes that the bonds have limited marketability.
For a pension fund, that means the review should explain transfer restrictions, the absence of a secondary market, available execution choices, fees, and comparable fixed-income alternatives.
The regulatory history
Arkansas Securities Department records include an April 1986 suspension related to failure to designate a principal. The suspension was vacated in July 1986 after the issue was cured. The episode belongs in the historical due-diligence file.
FINRA’s public BrokerCheck report contains additional historical disclosures for trustees and advisers to review alongside the current offering, execution terms, and available alternatives.
Open FINRA’s public BrokerCheck report.
The Arkansas legal question
Arkansas Code § 24-2-618(e) addresses single-agent or exclusive-agency arrangements and calls for extraordinary care and caution. The specialized U.S. distribution channel places that statutory question before pension counsel and trustees as part of a complete review.
The financial questions are more direct: What alternatives existed? How was limited marketability valued? What did the execution channel cost? How did the expected return compare?
The Integrity Act would require those questions to be addressed in writing for a covered purchase.
Read Aon’s marketability discussion →