Napier Park Sees Credit Portfolios Producing Equity-Like Returns
- Napier CIO Dorfman sees more growth in credit risk transfers
- Private credit being driven by “volatility washing,” he says
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For the first time since the 2008 financial crisis, investors can assemble credit portfolios capable of producing equity-like returns, according to Jonathan Dorfman, chief investment officer at Napier Park Global Capital.
The firm is on the hunt for “asset classes that provide a significant risk premium relative to the amount of defaults that might happen if the economy were to develop a more recessionary cycle,” Dorfman said on the Bloomberg Credit Edge podcast. That includes non-investment grade structured credit in the corporate, mortgage, consumer and auto spaces, he said.