Allianz Says French Bondholders Fear a Replay of Euro Crisis
- France is more reliant on foreigners than its G10 peers
- Allianz’s Hirt warns investors could shun French state bonds
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French officials must reassure foreign investors that the nation’s finances are in order or risk a fresh blowout in bond spreads, according to Allianz Global Investors’ multi-asset chief investment officer.
Overseas investors own a much larger share of French government debt than they do elsewhere, and some fear the current political turmoil could trigger a European debt crisis to rival the one seen over a decade ago, said Gregor Hirt, whose division has €156 billion ($168 billion) of assets under management.