Prudential Hires Goldman's Warren for Quantitative Bond Role

  • Warren to work with Trinquet as co-leader of quantitative unit
  • Lillard reshapes staff after being named fixed-income head

Prudential Financial Inc., the second-largest U.S. life insurer, hired Stephen Warren from Goldman Sachs Group Inc. as a managing director at the asset-management unit’s fixed-income operation.

Warren will co-lead the investment risk management and quantitative research team, the Newark, New Jersey-based insurer said Tuesday in a statement.

Michael Lillard is reshaping the bond operation after being named in October to head the unit. Prudential Fixed Income, which had $565 billion under management as of Sept. 30., also added John Maxwell from Jefferies Group LLC to help analyze junk bonds, the insurer said Monday.

“I am delighted that Stephen has joined our team, bringing his more than 20 years of investment experience,” Lillard said in the statement.

Warren was global head of portfolio construction and risk management for the fixed-income and liquidity-management teams at Goldman Sachs Asset Management, Prudential said. He has a bachelor’s degree from the University of Pennsylvania and a master’s in finance from the London Business School, according to the statement.

Risk Managment

The co-leader with Warren is Yves Trinquet, who was appointed in 2013 to help lead risk management. Trinquet also was assigned at the time to oversee the development of yield-curve, credit and risk models. Quantitative strategies can use mathematical models to identify mispriced securities.

Insurers hold bonds to back obligations to policyholders. Prudential and larger rival MetLife Inc. are among companies in the industry that also manage funds for third-party clients.

With yields near record lows, life companies have been adding talent from Goldman Sachs and other Wall Street firms. In 2013, Prudential hired Robert Cignarella from Goldman Sachs as co-head of global leveraged finance.

Aflac Inc. hired Eric Kirsch as chief investment officer in 2011, and Lincoln National Corp. named Ellen Cooper to a similar post in 2012. Both also had worked for Goldman Sachs. Andrew Williams, a spokesman for the New York-based bank, didn’t immediately return a message seeking comment.

Warren will work in the Newark office, a spokesman for the insurer said. Prudential Fixed Income also has teams in London, Singapore and Tokyo.

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