Meet Joseph Abruzzo, Israel lover and largest buyer of Israeli bonds | The Jewish Press - JewishPress.com | David Israel | 19 Iyyar 5784

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Joseph Abruzzo is the investment supervisor of Florida’s largest county, Palm Beach, and holds $700 million of his county’s $4.6 billion portfolio in Israeli bonds.

Abruzzo, 44, is a Democratic politician who serves in the independently elected position of Clerk of the Circuit Court and Comptroller of Palm Beach County, a position established by the Florida Constitution. Before being elected Clerk, Abruzzo spent ten years serving in the Florida House of Representatives and the Florida Senate.

Abruzzo has allocated 15% of the county’s investment portfolio to Israeli bonds, which is the maximum allowed by county policy. This total represents about a quarter of all Israeli bonds purchased since October 7. With its large Jewish population, Palm Beach County now holds the largest quantity of Israeli bonds in the world, surpassing all other individual holders in the world.

Abruzzo is not Jewish and claims to have purchased huge sums of Israeli debt not for ideological reasons but because it is the best investment of his country’s funds. But he also admits his support for Israel.

“I am proud to stand with what I consider our greatest ally in the entire world – Israel,” Abruzzo told JTA this month. “That said, these are incredibly safe investments. They generate an incredible return for county taxpayers and it made perfect sense to us from a fiduciary standpoint.

According to a May 14 WPTV report, a group of Palm Beach County residents filed a lawsuit against the county government over its investment in Israeli bonds. Between 50 and 100 concerned citizens gathered outside the county courthouse to protest the use of private and public funds to purchase these bonds. “We found that these bonds carry a high risk of not generating a return,” said Palm Beach County resident Lydia S., “which means the $700 million invested may not be recouped by the Palm Beach County.”

Israel has never defaulted on the payment of principal or interest on its domestic or foreign debt, but potential buyers are cautioned about sovereign credit risk, that is, the risk that a government will not be willing or can no longer honor its loan obligations.

According to the Financial Times, citing the Israeli Finance Ministry, Israel sold $8 billion worth of traditional US dollar international bonds in March. This offering received orders totaling $38 billion, attracting approximately 400 different investors from approximately 36 countries. In addition, Israel’s regular borrowing in local currency amounted to 12.25 billion shekels ($3.3 billion) in planned sales for May. However, Israeli bonds have increased as a proportion of overall debt issuance.

Regarding the lawsuit, the Abruzzo office provided the following statement to WPTV:

“Palm Beach County has a strong and diverse portfolio designed to protect taxpayer investments. Investments are governed by county investment policy and Florida law. The County’s investment in Israeli bonds will generate significant returns for Palm Beach County while protecting taxpayer dollars. Our office has a proven track record of delivering significant investment returns for Palm Beach County residents, including a record $172 million in investment income for taxpayers in fiscal year 2023.”

The clerk’s office said it was confident the lawsuit would be dismissed, with Abruzzo saying, “While we have not yet seen the lawsuit, we hope this frivolous case will be quickly dismissed with prejudice.” »