In the world of sovereign debt instruments, the Holy Grail is the GDP indexed bond, which is a borrowing instrument that operates counter cyclically. A sovereign would make smaller payments to lenders when times were tough and higher payments during good times. If such products were to be used, the risk of severe and widespread sovereign financial crises could (potentially) be ameliorated. However, attempts to market these products, except in a few pockets, have not prospered. The Israeli diaspora bonds program – while not fitting the conventional conception of a GDP indexed bond -- might have found the magic elixir. Spreads between Israeli diaspora bonds and conventional bonds suggest a countercyclical payment pattern. The Israeli program may be sui generis. But it is also possible that its design contains clues as to how to design a successful countercyclical sovereign financing program.