Thu, Mar 23, 2017
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. Hedge fund liquidations in 2016 surpass 2009 levels, new launches decline[more]

    Benedicte Gravrand, Opalesque Geneva: Even as the hedge fund industry's total assets exceeded the $3tln milestone last year, hedge fund liquidations increased. So much so that 2016 had the highest number of liquidations since 2008, claims the latest HFR Market Microstructure Report, re

  2. Hedge funds find no joy in macro as returns lag Trump rally[more]

    From Gulfnews.com: In 2017, macro hedge funds were expected to shine. So far? Not so much. It's been a far from impressive first two months for funds that trade around macroeconomic events. Discretionary funds rose just 0.3 per cent through February, according to Hedge Fund Research Inc., while the

  3. Strategies - Billionaire investor Marc Lasry shares how he's playing markets right now, Classic models are failing FX hedge funds desperate for return[more]

    Billionaire investor Marc Lasry shares how he's playing markets right now From CNBC.com: Buy on the prospect of deregulation. Sell on the enactment of deregulation. That's the strategy that billionaire investor Marc Lasry is implementing, according to an interview with CNBC in Las Vegas

  4. Opalesque Exclusive: Aberdeen makes the case for the lower mid-market[more]

    Bailey McCann, Opalesque New York: Aberdeen Asset Management has released a new paper focused on lower mid-market private equity. According to the paper, this segment of the private equity market is gaining popularity with private equity investors that are looking for multiple expansion and less

  5. Hedge funds await outcome of French elections, feel pinch on lower oil prices & weak dollar[more]

    Komfie Manalo, Opalesque Asia: Hedge funds felt the pinch of lower oil prices and weak U.S. dollar as the Lyxor Hedge Fund Index was marginally down as of the week ending 14 March, Lyxor Asset Management said in its Weekly Briefing. The Lyxor He