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Israel’s borrowing spree reaches Palm Beach as US municipalities pile in

County and state governments are enthusiastic investors in debt that is helping buttress Israel’s wartime deficit

One of the largest investors in Israel’s bonds is not a hedge fund titan or a Wall Street trader, but an elected municipal comptroller investing the tax dollars of Palm Beach County.

Joseph Abruzzo, the overseer of investments for Florida’s largest county, holds $700mn out of his $4.6bn overall portfolio in so-called Israel bonds. These are special overseas debt issuances that have been scooped up by US state and local governments since the conflict between Israel and Hamas began.

“I’m ecstatic that we have these bonds in our portfolio,” Abruzzo told the Financial Times. He cited “the great returns, the safety, and the benefit to the taxpayers of Palm Beach County” of debt that is becoming an important, but also controversial, part of Israel’s efforts to finance a longer war.

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