Hunting for Yield Returns, Why Look To The Subordinated Debt Market as an Investment Solution?
The Federal Reserve’s policy response to the 2020 Covid crisis has been to drive interest rates down to zero, monetize government deficits, buy credit assets regardless of quality and add permanent liquidity support. This leaves world private investors now with limited places to go to for yield returns. The ‘Junk Bond’ space is looking more fragile as defaults rise. The ‘Emerging Bond’ space is under pressure from low commodity prices and a rising US Dollar. Dividend yielding funds are under pressure as the profits of corporations are reduced. Leveraged Fixed Income solutions require a lot more leverage to maintain returns. On the other hand, the subordinated bond space, notably the instruments of blue chip corporations more likely to survive the current crisis, continue to provide decent yields
- Introduction to the Subordinated Debt Market
- Main Presentation: Balance Sheet pays the Interest Coupon
- Main Presentation: Competitive Investment Advantage of Subordinated Debt
- Main Presentation: Possible Drawbacks for the Investor
- Main Presentation: Individual Positions or a Specialized Portfolio Conclusion: Why look to the Subordinated Debt Market as an Investment Solution?
Event Recording
Hunting For Yield Returns, Why Look to the Subordinated Debt Market as an Investment Solution
Speakers
Ygal Cohen
- Title
- CEO & Managing Partner, Senior Portfolio Manager @
- Company
- ASG CAPITAL
- Role
- Moderator
Ygal Cohen founded ASG Capital in July 2008 in Miami, USA. Before founding ASG Capital, Ygal spent over twelve years working for various Wall Street firms including Prudential-Wachovia Securities, as a Director-Investments, and Jefferies Inc., as a Senior Vice President of Investments.
Ygal was in charge of a Sales Trading department specialized in Preferred Securities, Subordinated Debt and Hybrid Corporate Bonds, operating in close collaboration with international bank Syndicate and Trading Desks. His professional activity focused on providing investment advice on Fixed Income strategies to Institutional clients, mostly based in Europe. His clients included Pension Funds, Family Offices, Private Banks and High Net Worth Individuals.
Ygal has a Master’s Degree in Finance from Dauphine University, in Paris, France. Married with 2 children. He is passionate about Golf & Tennis.
Steven Groslin
- Title
- Partner, Senior Portfolio Manager @
- Company
- ASG CAPITAL
- Role
- Panelist
Steven Groslin Joined ASG Capital in January 2014. Prior to this, Steven spent over thirteen years trading Fixed Income for the Natixis Group in Paris. Before joining Natixis Steven worked for six years in Fixed Income lending in Paris and five years in Retail Banking in France and the UK.
Steven Groslin has a Bachelor Degree in European Accounting and Finance from Leeds Metropolitan University (UK) and LeHavre/Caen Business School (France).
About
ASG CAPITAL
ASG Capital is a Registered Investment Advisor in the State of Florida. Special focus is placed on Preferred Securities, Junior/Senior Subordinated Debt, Hybrid Securities, Contingent Convertible Bonds of Investment Grade Issuers. ASG’s Team Objective is to achieve Risk Adjusted Income Returns that are higher than Static Bond Portfolios.