Global insurance company Allianz SE (ALV.XE) is avoiding new
investment in European sovereign paper, Chief Executive Michael
Diekmann tells the daily Handelsblatt in an interview.
"We are avoiding sovereign bonds for our new investments," Mr.
Diekmann says.
German bonds aren't attractive because yields are lower than
inflation, and investment risk has increased considerably elsewhere
in Europe, following Greece's debt restructuring.
"This is why investors are shunning European sovereign debt,
preferring to invest in emerging markets, corporate bonds,
infrastructure and real estate," he adds.
Renewable energy and infrastructure projects are especially
attractive to long-term investors, such as insurers, he says.
Allianz is targeting electricity grids, because in Germany prices
are regulated by a federal network agency, offering an element of
security to investors.
"This isn't as attractive for producers, because returns are
below capital costs, but it's very attractive to us for
investment," he says.
Newspaper website: http://www.handelsblatt.com
-Write to the Frankfurt Bureau at
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