Wed, Jun 29, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Europe’s biggest insurer turns away from Euro sovereign bonds - report

Friday, September 28, 2012

amb
Michael Diekmann
From Benedicte Gravrand, Opalesque Geneva, and Florian Guldner, Opalesque Munich – Allianz, Europe’s biggest insurer and one of its biggest investors, wants to invest Eur1.65bn ($2.1bn) but is changing its strategy. CEO Michael Diekmann is not interested in Euro sovereign bonds anymore, he tells German daily Handelsblatt.

He said during an interview with Handelsblatt: "we are trying to avoid government bonds in our new investments."

He adds that German bunds would not be attractive because their yield is below inflation level. And in other European countries, risk has increased because of the debt restructuring in Greece.

"This is why all investors go out of European sovereign bonds and instead invest in emerging economies, in corporate bonds, in infrastructure and real estate," Diekmann explains. Allianz is planning to diversify further. Some of the investments that are attractive to insurance companies, which are long term investors, include renewable energy and infrastructure. Allianz also wants to invest in power grids because in Germany the energy regulator regulates prices; and this gives investors some security, he says.

He believes he sovereign debt crisis in Europe cannot be solved through economic growth. According to his calculations, Germany would have to reach a 4% inflation level and a 4% GDP growth to reduce its own debt, which is not realistic. The only solution, he states, would be in government reducing its expendit......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Blackstone buys minority stake in New York-based credit hedge fund Marathon[more]

    Benedicte Gravrand, Opalesque Geneva: Blackstone Strategic Capital Holdings Fund, a vehicle managed by Blackstone Alternative Asset Management (BAAM), has acquired a passive, minority interest in Marathon Asset Management, for an undisclosed sum. Based in New York,

  2. Investing - Soros, Druckenmiller among hedgies profiting in market plunge, Hedge funds were most bullish on bonds since 2004 before Brexit, Surprise Brexit vote unleashes scramble for dollars, High-yield hit on Brexit but no panic selling, Scientist turned hedge fund founder lured to pound, euro, Hedge fund avoids commodities, posts big gains[more]

    Soros, Druckenmiller among hedgies profiting in market plunge From HITC.com: Bullish positions in gold and volatility and well-timed short bets on China and emerging markets, among other areas, were some of the trades that benefited hedge funds on Friday as markets digested Britons' s

  3. Manager Profile - A 26-year old hedge fund manager called Brexit — here's what he thinks about the historic vote[more]

    From Businessinsider.com: Taylor Mann is not your typical fund manager. The twenty-six year old Texas A&M graduate manages Pine Capital in Larue, Texas (population 160), where he resides with his three-year old daughter. Also atypical compared with many of the largest funds out there, Mann makes

  4. Visium hedge fund manager Sanjay Valvani found dead[more]

    Benedicte Gravrand, Opalesque London: A hedge fund manager connected with an insider trading case has apparently committed suicide. Sanjay Valvani, 44, a hedge fund manager at New York-based Visium Asset Management, was found dead in an apparent suicide on 21 June in his Brooklyn residence,

  5. People - Mariner Investment’s co-CIO Williams to leave $5.5bn firm, IOOF hires new alternatives portfolio manager[more]

    Mariner Investment’s co-CIO Williams to leave $5.5bn firm From Bloomberg.com: Basil Williams, co-chief investment officer of Mariner Investment Group, is leaving the $5.5 billion hedge-fund firm after negotiations to renew his contract failed. Williams will stay in his role until t