ECB Bubble Means Sovereign Bonds Aren’t Worth It, Swiss Re Says
- Reinsurer moving more of its investments into corporate debt
- Governmment bonds don’t compensate for the risk, Fuerer says
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The European Central Bank has turned government bonds into one of the riskiest asset classes, prompting Swiss Re AG to move more of its investments into corporate debt, according to the reinsurer’s chief investment officer.
“If you’re looking for a bubble, here you go,” CIO Guido Fuerer said in an interview in Zurich. “With government bonds, you’re not adequately compensated for the risk you’re taking.”