FRANKFURT -(Dow Jones)- Allianz SE (AZ) doesn't expect its U.S. fixed-incomefunds that operate under the Pacific Investment Management Co., or PIMCO, brandto require financial support on the U.S. subprime woes, Chief Financial OfficerHelmut Perlet said Friday.
"There's nothing on the table that would signal any similar developments ofthe PIMCO funds," Perlet told an analyst conference call following second-quarter earnings.
His comments come in the wake of troubles in the U.S. mortgage market thatforced bailouts of a European mutual fund and a German bank earlier this week.
Earlier this week, French insurer AXA SA's (AXA) money-management unit offeredto cash out investors in a $1-billion U.S. bond fund after the fund, which was100% invested in asset-backed securities, shrank in size by about 40% lastmonth.
Two of the AXA fund's subfunds had lost 13.5% and 12.6% of their value July 18and 19, when credit markets around the world slid.
Separately, German midsized lender IKB Deutsche Industriebank AG (IKB.XE) saidThursday that state-owned development bank KfW hasn't only taken on all of therisks of a German midsized lender with regard to IKB's Rhineland Fundinginvestment vehicle, but has also assumed "expected possible losses" of up to EUR1 billion from risk-exposed positions on IKB's balance sheet.
IKB has been hit by exposure to the U.S. subprime market. KfW, which holds 38%of IKB, earlier this week said IKB's obligations to Rhineland Funding amountedto around EU8.1 billion.
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