American International Group will look to European banks for investment opportunities in non agency RMBS paper, according to a Bloomberg report.

AIG is reportedly considering buying RMBS assets from European banks seeking better positioning under Basel III to bolster its investment portfolio. The company last year made a $15.7 billion bid to buyback a pool of mortgage bonds turned over to the Federal Reserve Bank of New York as part of the AIG's bailout.   

According to the Bloomberg report, AIG may be looking for better yield opportunities from paper sold by European banks. AIG plans to increase annual investment income by $500 million to $700 million, the New York-based insurer said in a regulatory filing last month, without specifying what types of
securities it would buy.

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