The CLO Investor Podcast #31, Serhan Secman, Global Head of CLOs, Napier Park
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Feb 20, 2026 
Serhan Secman, Global Head of CLOs at Napier Park and seasoned CLO investor with engineering and finance roots. He discusses market inefficiencies and why networking and data matter. They cover manager dispersion, drivers behind 2025 equity moves, default outlook for 2026, refinancing dynamics, and practical steps for moving into CLO equity.
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Inefficiency Is Structural Opportunity
- Market inefficiencies persist because investors have differing objectives, creating opportunities where one investor's trash is another's treasure.
- Recognize that identical bonds can have different values depending on investor constraints and mandates.
Defaults Depend On Rates And Idiosyncrasy
- Default outlook for 2026 is ambiguous and rate-driven; falling SOFR helps but idiosyncratic defaults likely persist.
- Expect default rates to oscillate around current elevated levels, not collapse to zero or spike uncontrollably.
Assess Manager Size For Recovery Skill
- Evaluate manager size and position concentration when assessing recoveries because larger managers may realize better recoveries via LME processes.
- Consider manager optionality: smaller managers can trade out earlier while large players may lack that flexibility.