AIG Cuts Wall Street Reliance With Real Estate: Mortgages

American International Group Inc. is increasing direct investment in real estate to reduce its reliance on Wall Street as record-low interest rates pressure investment income.

“It’s making sure that we are taking control of the risks we’re going to put on our books, and we can’t rely on the public markets,” including commercial mortgage-backed securities, Chief Executive Officer Robert Benmosche said at a conference this week in Chicago. “We have to do direct investment.”