Business & Finance
14 February 2023, 6:56 pm. 1 minute
| Reuters was first to report that Allianz (ALVG.DE), one of the world’s biggest investors, is moving to shun “alternative” investments, including property, wind farms and even London’s sewage system, in favor of traditional bonds. The German company’s new approach comes amid a sea-change in the investment environment, with central banks raising interest rates to clamp down on runaway inflation, prompting higher yields on mainstream assets. |
Market Impact
The move by Germany’s biggest financial company by assets and market value provides evidence of a significant shift towards the multi-trillion dollar market for investment-grade bonds, which keep governments afloat and pensioners fed, and away from alternatives that juiced returns in an era of ultra-low and even negative interest rates.
Article Tags
Topics of Interest: Business & Finance
Type: Reuters Best
Sectors: Business & Finance
Regions: Europe
Countries: Germany
Win Types: Exclusivity
Story Types: Exclusive / Scoop
Media Types: Text
Customer Impact: Significant National Story