Research & Analysis

The research and analytical work of K&L's partners addresses a wide range of issues in financial markets and the Israeli economy. The work combines data analysis, empirical research, and in-depth familiarity with the activities of markets, companies, and financial institutions.

Real Estate and the Housing Market

Research and analysis of the housing and income-producing real estate markets, development companies, sector financing and credit, and institutional real estate investment.

Real Estate and the Housing Market

State of Play in the Residential Development Sector

Itay Kedmi | Phoenix Institute for Capital Market Research, Reichman University | 2026

An analysis of the activity and financial condition of residential development companies in Israel, examining sales, inventory, cash flow, debt, and financing incentives offered to homebuyers. The analysis found that financing incentives reflect a significant effective discount in housing prices.

Real Estate and the Housing Market

The Effect of Section 9(2) of the Income Tax Ordinance on Pension Fund and Provident Fund Investments

Guy Lakan and Moshe Bareket | Harel Center for Capital Market Research, Tel Aviv University | 2025

Research examining how tax rules affect the asset allocation of pension and provident funds, particularly direct investments in real estate and infrastructure. The study indicates that the existing structure may lead to under-allocation to these assets.

Real Estate and the Housing Market

Measuring the Performance of Income-Producing Real Estate Relative to Fundamentals

Itay Kedmi | Bank of Israel | 2022

The study examines the performance of Israel’s income-producing real estate market and the relationship between pricing and returns in the sector and economic variables and fundamentals.

Real Estate and the Housing Market

Analysis of the Drivers of Credit Growth in the Construction Sector and the Potential Implications for Financial Risk

Itay Kedmi | Bank of Israel | 2022

The study examines the rapid growth in credit to the construction sector, the factors behind it, and the potential risks to the financial system under housing-market slowdown scenarios.

Real Estate and the Housing Market

Decline in the Value of Income-Producing Real Estate Companies During the COVID-19 Crisis

Itay Kedmi | Bank of Israel | 2020

An examination of the decline in the value of income-producing real estate companies during the COVID-19 crisis and the different effects of the crisis across business segments in the sector.

Real Estate and the Housing Market

The Effect of Access to Train Stations on Housing Prices

Guy Lakan | The Hebrew University of Jerusalem | 2019

An empirical study examining the relationship between improved access to public transportation, the opening of train stations, and housing prices in areas near the stations.

Ynet – Research Coverage

Alrov Institute – Research Presentation at the Conferenc

Real Estate and the Housing Market

Analysis of the Financial Stability of Publicly Traded Residential Development Companies

Itay Kedmi | Bank of Israel | 2018

The study analyzes the financial resilience of publicly traded residential development companies and their sensitivity to changes in sales, housing prices, and financing conditions.

Real Estate and the Housing Market

Income-Producing Real Estate in Israel

Itay Kedmi | Bank of Israel | 2018

Mapping and analysis of Israel’s income-producing real estate market, including the development of investment volumes, returns, and exposure characteristics, with particular attention to its role in institutional investor portfolios.

Institutional Investors

Research and analysis of institutional investor activity, asset allocation, alternative investments, debt markets, regulation, and long-term savings.

Institutional Investors

The Golden Age of Institutional Investors

Moshe Bareket, Guy Lakan, and Itay Kedmi | Orion Publishing | 2025

A comprehensive book on the development of institutional investors in Israel and their emergence as major players in capital markets and the economy. The book analyzes institutional investment strategies, investments in alternative and overseas assets, credit, real estate, derivatives, and regulation, and their impact on savers and capital allocation in the economy.

For more information about the book: Orion Publishing website

Institutional Investors

Do Minorities Pay More for their Long-Term Savings Products?

Guy Lakan | The Hebrew University of Jerusalem | 2026

Research examining whether savers from minority groups pay more for long-term savings products and the differences in the terms and costs they bear.

University of Colorado Boulder – Research Presentation at the Conference

Institutional Investors

Trends in Institutional Investors’ Overseas Investments

Guy Lakan | Phoenix Institute for Capital Market Research, Reichman University | 2026

A policy paper examining the growth in institutional investors’ exposure to overseas assets, investment performance relative to the domestic market, and the use of foreign-exchange hedging. The paper also analyzes the relationship between institutional investor activity and developments in Israel’s foreign exchange market.

Institutional Investors

The Effect of the Solvency Regime on Insurance Companies’ Investments

Guy Lakan and Moshe Bareket | Harel Center for Capital Market Research, Tel Aviv University | 2026

Research examining how Solvency capital requirements affect insurance companies’ ability and incentives to invest in illiquid assets and long-term investments, particularly infrastructure.

View the Research and Presentation

Institutional Investors

Wealth Transfer in Long-Term Saving Products: The Role of Alternative Assets

Guy Lakan | The Hebrew University of Jerusalem / Harel Center for Capital Market Research | 2024

Research examining how timing differences in the valuation of alternative and illiquid assets may create wealth transfers among savers when funds are transferred, especially during periods of high volatility.

Presentation – Fair Value Forum

Institutional Investors

Private Equity and Venture Capital Fund Performance: Evidence from a Large Sample of Israeli Limited Partners

Guy Lakan, Alon Brav, and Yishay Yafeh | ECGI / SSRN | 2023

Research examining the performance of Israeli institutional investors’ investments in private equity and venture capital funds, comparing domestic and foreign funds and examining investors’ access to and selection of top-performing funds.

Institutional Investors

Changes in the Corporate Bond Issuance Market and Their Impact on Savers

Guy Lakan, Tom Trilynik, and Gil Butler | Capital Market Authority | 2022

Research examining how regulatory changes in the composition of participants in the institutional stage of corporate bond offerings affected institutional investor participation, issuance pricing, and the returns received by savers.

Institutional Investors

The Effects of the Hodak Committee on Institutional Investors’ Corporate Debt Investment Preferences

Itay Kedmi and Guy Lakan | Bank of Israel and Capital Market Authority | 2021

Research examining how the requirement that institutional investors conduct analysis and ongoing monitoring of corporate debt investments affected their investment decisions, particularly the allocation between tradable bonds and private loans.

Presentation – Fair Value Forum

Banking, Credit and Financial Stability

Research and analysis of the banking system and credit market, profitability and competition, bank and non-bank credit, and financial stability.

Banking, Credit and Financial Stability

Trends in Banking-Sector Profitability

Itay Kedmi | Phoenix Institute for Capital Market Research, Reichman University | 2025

A policy paper examining the sources of growth in Israeli bank profitability, the contribution of the interest-rate and deposit environment to profitability, and differences in interest-rate pass-through across households, small businesses, and large businesses. The analysis links the structure of profitability to trends in credit growth and also compares it with the non-bank credit market.

Banking, Credit and Financial Stability

The Relationship Between Bank Profitability in Business Segments and Trends in Business Credit

Itay Kedmi | Bank of Israel | 2024

An analysis of bank profitability across business segments and its relationship with developments in business credit, examining differences among large, medium-sized, and small businesses. The work was published in the Financial Stability Report for the first half of 2024.

Banking, Credit and Financial Stability

Risk Developments in the Non-Bank Credit Sector

Itay Kedmi | Bank of Israel | 2021

An analysis of the development of the non-bank credit market and the risks arising from the activity of publicly traded credit providers, examining funding structure, credit quality, and companies’ sensitivity to financial shocks. The work was published in the Financial Stability Report for the second half of 2021.

Banking, Credit and Financial Stability

Analysis of Public Companies’ Resilience During the COVID-19 Crisis

Itay Kedmi | Bank of Israel | 2020

An analysis of the ability of Israeli public companies to withstand the exceptional disruption to economic activity during the COVID-19 period, examining liquidity, leverage, financing needs, and the amount of debt exposed to risk under crisis scenarios. The work was published in the Financial Stability Report for the first half of 2020.

Capital Markets and Finance

Research and analysis of capital markets, financial asset pricing, liquidity, financing, and investor behavior.

Capital Markets and Finance

The Lion’s Roar in the Capital Market: Households Bought, Institutions and Foreign Investors Sold

Itay Kedmi | Phoenix Institute for Capital Market Research, Reichman University | 2026

An analysis of the Israeli capital market’s response during the first weeks of the conflict with Iran, examining changes in the holdings of different investor groups. The analysis found that the initial market gains were supported mainly by household purchases, while institutional and foreign investors reduced their exposure.

Capital Markets and Finance

Israel’s Capital Market – 2025 Review and Outlook

Itay Kedmi | Phoenix Institute for Capital Market Research, Reichman University | 2026

A review and analysis of major developments in Israel’s capital market in 2025, including stock-market performance, the corporate bond market, the risk premium, investor composition, and the macroeconomic factors that shaped market activity. The paper also examines risks arising from aggressive pricing of risky assets and increased activity by retail investors.

Capital Markets and Finance

Estimating the Illiquidity Premium in Israel’s Corporate Bond Market

Guy Lakan and Lior David-Pour | Capital Market, Insurance and Savings Authority | 2022

An empirical study estimating the illiquidity premium in Israeli corporate bonds by comparing tradable and non-tradable bonds with similar characteristics. The study examines the relationship between the illiquidity premium and credit rating, issue size, and bond characteristics.

Capital Markets and Finance

Does a Change in an Accounting Standard Affect a Company’s Risk Pricing?

Itay Kedmi | Bank of Israel | 2021

An empirical study examining how a change in the presentation of liabilities in financial statements affects corporate risk pricing in the bond market, allowing the effect of information disclosure to be distinguished from the effect of accounting recognition itself. The study was published in the Bank of Israel Discussion Paper Series, 2021.13.

High Tech and Innovation

Research and analysis of the high-tech and innovation sector, trends in investment and capital raising, investor activity, and the integration of the technology sector into capital markets.

High Tech and Innovation

Trends in Israeli High-Tech and Their Reflection in Technology Stock Valuations

Itay Kedmi | Phoenix Institute for Capital Market Research, Reichman University | 2026

A policy paper examining structural changes in Israeli high-tech, including trends in output, employment, capital raising, exits, and AI investment, and how these changes are reflected in the valuation of Israeli technology stocks and their relationship with the global technology cycle.

Coming Soon

High Tech and Innovation

Trends in Israeli Institutional Investors’ High-Tech Holdings, 2016–2021

Guy Lakan and Maya Shtaun | Capital Market Authority and Start-Up Nation Policy Institute | 2023

A comprehensive study of the development of Israeli institutional investors’ investments in the high-tech sector, examining holdings in public and private technology stocks, investments in VC and PE funds, and differences between investments in Israel and abroad.

Other

Research on additional economic topics, including public policy, economic behavior, and cross-cutting issues.

Other

The Value of Private Information: Evidence from a Legislative Change in Israeli Courts

Liran Einav, Ehud Guttel, Ilan Kremer, Guy Lakan, and Sarit Weisburd | Management Science | 2026

An empirical study examining the economic value people place on privacy using a legislative change in Israel that granted anonymity to plaintiffs in personal-injury cases. The study uses the regulatory change to estimate how the disclosure of personal information affects behavior and economic outcomes.