European Central Bank

The majority of the large investors expected that the loose monetary policy of the European Central Bank will continue and historically interest rates will remain low. St. Gallen, 12.11.2013. These are the Central findings of a recent survey by the German investment company universal. Thus, nearly 90 percent of the surveyed large investors expect no long-term success of current monetary policy.

This policy is to buy time, but eliminate any fundamental economic difficulties. How to generate a decent return without going to high risk? Large investors who want a chance risk balance, need to revisit just their plants. Government bonds are unpopular with many investors. One-fifth of respondents wants to increase its equity exposure, where many share quotas of insurance, financial departments of industrial and service companies, as well as from foundations are already not very high and an increase in this segment should become hardly noticeable. High in the course are currently alternative investments and that want to extend major investors. Here, the survey shows that many large investors want to appreciate but also equity capital (private equity”), but otherwise like to invest their money to fixed or at least good predictable returns: be called investments in real estate, infrastructure and loans.

Mainly long-term corporate loans are becoming increasingly popular in Germany. As a result of the financial crisis, many banks have to reduce their presence in long-term lending. Companies, however, in any case, those with an ordinary credit must not leverage renounce. The issuance of corporate bonds in Germany has increased in recent years. A market for tradable credits forms, because many big investors are liquid and fixed interest income with little risk of failure might be interested. The demand by large investors to long-term loans increasing sharply. This other, at first glance are interesting non-obvious sectors of the economy. Finally interested in not only German large investors for loans to German companies. Foreign investors seem motivated companies to invest in, which are considered solid debtor.