A new investigation has revealed that German-US financial giant Allianz, together with its California-based subsidiary PIMCO, has become the world’s largest foreign investor in Israeli government bonds during the ongoing wars in Gaza, Lebanon and Iran.
According to data from sustainability research firm Profundo, Allianz group entities held around $2.67bn in Israeli sovereign bonds by September 2025, accounting for more than half of all non-Israeli holdings in the dataset at that time. At their peak, these investments reportedly exceeded the combined holdings of multiple Western governments.
The surge in purchases comes as Israel has significantly increased bond issuance to finance military operations. These bonds have offered higher yields during wartime, attracting institutional investors despite growing controversy and allegations of human rights violations linked to the conflict.
Profundo data shows total foreign holdings of Israeli bonds rose sharply from about $1.16bn in late 2024 to nearly $4.9bn by early 2026, with the United States and Germany accounting for the vast majority of investments. Allianz-PIMCO alone drove most of Germany’s exposure, while US-based funds also expanded their holdings.
Critics argue that investing in Israeli sovereign debt during ongoing conflict raises serious ethical and legal concerns, while supporters point to strong returns and credit fundamentals. Human rights advocates and legal experts say such financing indirectly supports military operations.
The report highlights a growing divide in global finance, with some European institutions divesting from Israeli assets while major US-linked asset managers continue to expand their exposure.
Allianz and PIMCO have not publicly responded to the findings.
