A picture illustration shows U.S. 100-dollar bank notes taken in Tokyo August 2, 2011. REUTERS/Yuriko NakaoNEW YORK, June 22 (Reuters) – U.S. interest rates likely will stay relatively low with ample cash in the financial system for the foreseeable future, the head of Allianz Life (ALVG.DE) said, despite Federal Reserve comments that sent stock prices tumbling last week.A gradual rate rise and slow withdrawal of excess liquidity would put emphasis on alternative assets, which are a growing part of Allianz’s investment portfolio, said Walter White, chief executive officer of Allianz Life, speaking in an interview that aired on Tuesday for the Reuters Future of Insurance U.S.A. conference. To see the video, click: https://vimeo.com/566058091/f1df8990e4Private equity firms are using such investments to boost returns on the nearly $380 billion of insurance assets they own. L2N2NJ1DG read more “We have to be prepared to deal with what is still an historically low-rate environment,” said White, who will step down as CEO September 1. While he expects rates to rise, “I don’t see rates radically changing” from current yields around 1.50% to 1.60% on 10-year Treasuries.Insurance stocks have lagged as investors fret that insurers cannot operate well in a low-rate environment, White said. In…
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Low rates to persist, drive quest for yield -Allianz Life CEO
