Episode summary
PGIM's Phil Waldeck - the intersection of insurance and asset management
Alt Goes Mainstream
· · Hosts: Michael Sidgmore · Guests: Phil Waldeck
Summary
Phil Waldeck argued that the core discipline at the intersection of insurance and asset management is asset-liability management: understanding liabilities first, then building the right mix of liquidity, duration, public credit and private credit around them. He said the needs of a long-duration life insurer, a short retail annuity platform, a pension risk transfer book, or a reinsurer can be materially different, and the portfolio has to reflect those differences rather than a generic 60/40 model.
He also said private credit is not a new phenomenon for insurers, even if the current market looks new because it has grown so quickly. In his view, the opportunity spans many flavors, including private placements, direct lending, securitized credit, private ABF and residential mortgage loans, but each must fit the liability profile and the liquidity needs of the insurer or investor.
Waldeck emphasized that scale, origination depth and culture matter as private markets mature. He said PGIM’s combined public and private credit platform, with more than $1T in credit capabilities, helps it serve asset owners who need fewer, broader manager relationships. He also warned that as capital floods into private credit, underwriting discipline, stress testing and governance become more important, especially ahead of the next credit cycle.
Key takeaways
- Phil Waldeck said the first job for insurers and their asset managers is to get ALM right, because liabilities, liquidity and regulation determine the portfolio design.
- Waldeck said private credit is broad, and the right mix can include private placements, direct lending, private ABF and residential mortgage loans depending on the liability.
- He argued that public and private credit together create a useful continuum, and PGIM’s more than $1T credit platform helps it build solutions across that range.
- Waldeck said the next credit cycle will test underwriting, terms and liquidity, so managers need long-term culture and stress-testing discipline now.
- He said insurers and other allocators increasingly want fewer manager relationships, which favors firms with scale, breadth and a long track record.
Notable quotes
“job one uh as an insurer uh and an asset manager supporting an insurer is you got to understand the liabilities”
“it's the intersection of the assets, the liabilities and the capital and the regulatory regime that an insurer faces”
“private credit arena has uh expanded so significantly in the last 5 10 years, people perceive as if it's new”
“There will be a credit cycle and there will be credit losses and that will put pressure on insurers and on asset managers”
“And if we're able to have uh you know a Walmart of uh choices but can combine it into an attractive meal”
How the episode opens
This episode of the Alco Mainstream podcast is brought to you by Ultimus, a leading full-ervice fund administrator for asset managers in private and public markets. As private markets continue to move into the mainstream, the industry requires infrastructure solutions that help funds and investors keep pace. Ultimus is a leading full-ervice fund administrator for asset managers in both private and public markets, offering a wide range of capabilities across registered funds, private funds, and public plans, as well as outsourced middle office services.
Delivering operational excellence, Ultimus helps firms manage the everchanging regulatory environment while meeting the needs of their institutional and retail investors. Ultimus provides comprehensive operational support and fund governance services to help managers successfully launch retail alternative products. Trusted by institutions, investment consultants, registered investment adviserss, state governments, and fund managers, Ultimus provides solutions for nearly every investment structure in the marketplace.
Visit www.ultimusf fundsolutions.com to learn more about Ultimus' technology-enhanced services and solutions or contact Ultimus executive vice president of business development Gary Harris on email at g har har har har har har har har har har har har har har har har har har har har harris at ultimus funfundsolutions.com. We thank Ultimus for their support of alts going mainstream. We're going mainstream.
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We're going mainream. Welcome back to the Algo's mainstream podcast. Today's episode is with an experienced asset allocator who has operated at the intersection of insurance and asset management throughout his career.
We sat down in Credential's New York studio with PIM's head of multiasset and quantitative solutions, Phil Waldec.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- insurance asset management intersection
- asset liability management
- insurers allocating to private markets
- private credit
- public and private credit integration
Companies and tickers mentioned
- Prudential
- PGIM
Watch the episode
Watch “PGIM's Phil Waldeck - the intersection of insurance and asset management” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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Alt Goes Mainstream, this episode and its artwork belong to Michael Sidgmore. Octagon is not affiliated with the show; this page is an independent summary.
