Unlocking Overlooked Opportunities in Israel’s Capital Markets

In this episode of Mission Matters Business Podcast, host Adam Torres welcomes Aaron Levitas, Managing Partner at Kotel Investment Management, to discuss overlooked opportunities in Israel's capital markets. Levitas shares his personal journey from a law career in Washington, D.C., to building a firm focused on Israel’s underappreciated bond market, driven by a blend of idealism, family ties, and deep market insight. He highlights how Israel’s public markets—particularly its bond market—are structurally unique: all bonds are exchange-traded on the Tel Aviv Stock Exchange, creating transparency and liquidity rarely seen globally. With less than 1% of Israeli corporate bonds held by international investors, the market remains under-allocated and offers strong diversification potential. Levitas emphasizes that despite geopolitical turmoil, Israel’s economy has thrived, with the shekel reaching a 30-year high and stock indices outperforming global benchmarks since October 2023. He attributes this resilience to a domestic savings engine, including a world-leading mandatory pension system that fuels consistent demand for local bonds. The episode concludes with Levitas’ vision of a more prosperous Middle East, driven by emerging ties between Israel, Gulf states, and India, and a personal invitation to visit Israel beyond the headlines.