Germany’s largest financial company Allianz is being investigated by German regulator BaFin after its US investment funds suffered billions of dollars in losses last year, sources say. BaFin is investigating multiple departments of Allianz and the extent to which their executives outside the fund division had knowledge of, or were involved in events that led to those losses. Reuters notes that the losses from bad bets on options were so large that Allianz closed two funds in March 2020 that were worth $2.3bn at the end-2019 and ‘losses at others caused some investors to withdraw what was left of their money’.
Allianz, which has ~$2.9tn in AUM already faces multiple investor lawsuits over its Structured Alpha Funds and investigations by the US DOJ and SEC. Last month, the insurer said that after reassessing the risks related to the funds investigated by the DOJ, the impact could materially impact its future financials.
Allianz’s bonds were flat with its USD 3.2% Perp at 100.1, yielding 3.2%
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