Value-sensitive money managers such as hedge funds, have become the dominant buyers of mezzanine CLO debt (securities rated Single-B, Double-B or Triple-B). Mezzanine CLO yields have remained attractive compared to high yield bond or bank loan funds.
New York, NY (PRWEB) February 27, 2014
The Ivy Family Office Network hosted its February 2014 Family Office Outlook Forum in New York, NY on February 13th. Phil Darivoff, Chairman of DFG Investment Advisers, led a panel discussion on “Finding Yield in a ZIRP Environment”.
Darivoff commented, “Opportunities in the credit markets have arisen from financial crisis spawned regulation. Before the crisis, commercial banks were among the most active investors in CLO debt. Now, Banks have largely stepped back from this market. Value-sensitive money managers, such as hedge funds, have become the dominant buyers of mezzanine CLO debt (securities rated Single-B, Double-B or Triple-B). This is largely because mezzanine CLO yields have remained attractive compared to mainstream opportunities like high yield bond or bank loan funds.”
He continued, “DFG has been able to find value in the current mezzanine CLO market, and we see yields continuing to remain attractive. With higher yields, lower interest rate risk and lower risk of loss from default compared to high yield bonds and bank loans, we believe the CLO market is a good place to find value. ”
Other speakers on the panel included Eric Rosen of Reef Road Capital, Patrick Maldari of Aberdeen Asset Management, Zhengyuan Lu of OnDeck and Mickey Vetter of Market Access Partners.
Philip M. Darivoff, Chairman – DFG Investment Advisers and Vibrant Capital Partners
Phil Darivoff serves as Chairman of the Board of DFG Investment Advisers, Inc. and Chairman of the Board of DFG's parent company, Vibrant Capital Partners, LLC.
Prior to joining DFG, Phil spent nearly 27 years at Goldman Sachs, where he most recently served as a member of the firm's Structured Finance Capital Committee and director of Goldman Sachs' Office of Alumni Relations. He served as head of Capital Markets and co-head of the Corporate Bond Department until 2002, and chairman of Credit Capital Markets until 2005. Phil retired from Goldman Sachs in 2013.
Phil graduated from The Wharton School at the University of Pennsylvania with a B.S. in Economics and subsequently received his MBA from Wharton's graduate school. Phil is an Emeritus Member of the Wharton School’s Board of Overseers. He is also a Chartered Financial Analyst. Phil is a Co-Chairman of the Board of the National Museum of American Jewish History and a National Board Member of AIPAC. He also serves on the Boards of Clal, The Jewish Center for Leadership and Learning and The Katz Center for Advanced Judaic Studies at the University of Pennsylvania.
DFG Investment Advisers, Inc. (DFG) is an asset management and advisory firm focused on alternative credit strategies. As of year-end 2013, the firm managed approximately $1.4 billion in corporate and structured credit assets. DFG also serves as a risk advisor to a number of global institutional investors and had approximately $15.8 billion of structured credit assets under advisory as of that date.
About The Ivy Family Office Network Forum
The Ivy Family Office Network Forum, IvyFON, provides an ongoing dialogue for family offices to support high-value education and information on trends for family office investing, structure and operational excellence. Attendees gain practical strategies and solutions to achieve both short and long-term objectives. The program features off-the-record, peer-to-peer discussions in a non-commercial setting, in-depth and highly interactive sessions.
IvyFON, is a leading peer to peer global family office network with several hundred family offices attending events around The Americas every year. Some of the more than 2,000 past speakers include most of the top 10 largest asset allocating consultancies, pre-eminent alternative investment funds, leading institutional investors, best-in-class asset management professionals, family office subject matter experts and world-class family offices.
Forum sessions are multi-format and cross-disciplinary covering a range of family office centric topics.
IvyFON originates from one of the United States’ oldest and largest alternative investment networks, the IvyPlus network. IvyPlus originated as a peer to peer private equity, real estate and hedge fund network consisting of Ivy League and comparable school alumni as well as meritorious participants in the program. The group includes New York City and Los Angeles deal networks across multiple disciplines including private equity, health care and real estate. More than 15,000 investment, family office and institutional investment professionals have attended forums globally.
For more information on DFG Investment Advisers, contact Alexandra Calma at acalma(at)dfgia(dot)com or at 646-747-8465. For more information on the Ivy Family Office Network, contact us at 646-290-8114 or at ivyfon.com/contact.html.