Thu, Apr 2, 2015
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. Other Voices: Does the hedge fund industry benefit society?[more]

    This article was authored by Don Steinbrugge, Chairman of Agecroft Partners, a US-based global consulting and third party marketing firm for hedge funds. It is no secret that the hedge fund industry is viewed negatively by a la

  2. Opalesque Roundtable: Emerging managers should avoid chasing 'institutional unicorns'[more]

    Bailey McCann, Opalesque New York: For managers looking to raise a new fund after the crisis, marketing efforts will need to be significantly different, according to delegates at the recent Opalesque Texas Roundtable. "Most of the smaller managers come to the whole fund-raising and marketing

  3. Cohen's private investments deliver strong 7.5% gain in Q1[more]

    From Reuters.com: Billionaire Steven A. Cohen's investments gained 7.5 percent in the first three months of 2015, according to a person familiar with the numbers, helping the former hedge fund manager extend his string of market-beating returns. Cohen's Point72 Asset Management, which invests

  4. Hedge fund launches fall again, $1bn funds found to outperform even smaller hedge funds[more]

    Komfie Manalo, Opalesque Asia: The number of new hedge fund launches fell again in 2014, the third consecutive year of decline, while fund liquidations saw their first drop since 2010, according to the latest HFR Market Microstructure Industry Report released by industry data provider HFR. Acc

  5. Opalesque Exclusive: Cyber security and hedge funds: increased awareness, Part One[more]

    Benedicte Gravrand, Opalesque Geneva: If you look at the recent cybersecurity news from Bloomberg, hackers are frightening the people: they steal photos and threaten to expose them, they can break into ATMs, they ha

 

banner