Now that bond markets are souring, Allianz should hope investors pay little attention to Pimco [profile], which saw outflows in May, the WSJ writes.

Allianz hasn't been given much credit for its ties to Pimco, which could advantage Allianz now that Pimco is experiencing negative press. Unfortunately for Pimco, a weakening bond market may continue to cause outflows from 2014, even if its asset base stays resilient from funds it gets from Allianz life insurance business.

There are bright spots for Pimco, however:

"A more diversified business could help Pimco ride out any coming ructions. Although only about 10% of its assets are in equities, providing structured-credit products for institutions should make clients less likely to defect. Pimco's focus on so-called structured solutions and its courting of retail money is also boosting margins—the new business margin in the first quarter was 0.63%, against 0.44% for its business as a whole."

 

Edited by: Casey Quinlan


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