New York City could begin reinvesting public pension funds in Israeli government bonds, despite new mayor Zohran Mamdani calling for divestment from Israel over its destruction of Gaza.
City Comptroller Mark Levine told the Financial Times that Israeli bonds have “performed very well” and remain “investment-grade rated.” He said it was his fiduciary duty to prioritize investment returns over politics. Mamdani, however, has said the city “should not have a fund that is invested in the violation of international law.”
Israel’s 10-year dollar bonds currently yield about 5.2%, compared with roughly 4.2% for similar U.S. Treasuries, making them attractive to some public funds.
