KSM launches two Israeli corporate bond ETFs

By Susanna Moon

Chicago, Feb. 4 - KSM said it issued two index-linked notes tracking the Israeli corporate investment-grade indexes, the Tel-Bond 60 and Tel-Bond 40.

Tel-Bond 60 is an index that comprises the 60 largest investment-grade bonds by market capitalization traded on the Tel-Aviv Stock Exchange, according to a press release. The bonds are linked to the consumer price index, bearing fixed interest.

The Tel-Bond 40 index encompasses the mid-cap bonds ranked 21 to 60 within the Tel Bond 60 index.

KSM said the bond indexes have an average rating of AA, an average duration of five-and-a-half years and an average yield to maturity of between 4.55% and 5%.

"These two indices add to the continued acceleration of the Israel corporate bond market and will act as a benchmark for the industry," Avner Hadad, chief executive officer of KSM, said in the release. "The launch of the two [exchange-traded funds] will create greater liquidity and lead to a narrowing of spreads throughout the corporate bond market."

KSM is an ETF manager based in Tel Aviv.

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