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Landesbanks and life insurers counter credit critiques

Concerns about Landesbanks’ and German life insurers’ credit risk management have grown in recent months, following reports from rating agency Fitch Ratings questioning their exposures. But the institutions say the critics are wrong.

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On the debt syndicate desks of the world’s leading investment banks, the phrase ‘German institutions’ can get pulses racing. Anecdotal evidence indicates that Landesbanks and life insurers snap up almost everything on offer, whether straight corporate bonds or the most sophisticated structured product.

Earlier this year, Fitch Ratings investigated the credit-worthiness of these institutions. In

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