Deals
Next Crisis in Finance May Be Public Pensions, $1.2 Trillion Asset Manager Says
- Municipalities, states are pressured by funding shortfalls
- Head of asset manager also sees equity markets being reshaped
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What’s on the list of concerns for a man who runs a $1.2 trillion asset manager? Swelling shortfalls in U.S. public pensions, according to PGIM Chief Executive Officer David Hunt.
“If you were going to look for what’s the possible real crack in the financial architecture for the next crisis, rather than looking in the rearview mirror, pension funds would be on our list,” Hunt said Friday in an interview. Pressure on municipalities and states will intensify in a downturn when local tax revenues decline and unemployment worsens, he said. “So we’re worried about those pension obligations.”