JP Morgan assessments on the impact of the elections on the economy

In depth

At JP Morgan, they estimate that the central scenario after the elections is that no government will be formed, and according to Globes, such a situation is not expected to harm the bond market in the short term. According to Bizportal, the bank sees the absence of a government as the base scenario and estimates that a continuing budget will restrain spending.

According to Calcalist, foreign investors believe that a change of government could reduce regional tensions and lower Israel's risk premium. According to Bizportal, the market is already pricing in risk: Israel's CDS rose from 52 to more than 63 basis points within about five weeks.