Black Swan Investor Watching for ‘Greatest Credit Bubble’ to Pop

Mark Spitznagel is paid to be prepared for when the market’s weakest links are exposed in a big way.

Right now, the Universa Investments founder, whose fund aims to protect clients during black swan events, says the financial system is most vulnerable to “the greatest credit bubble of human history.”

“If this credit bubble ever pops, it’s going to be the most catastrophic market failure that anyone has ever read about -- but let’s hope that doesn’t happen,” Spitznagel, Miami-based Universa’s chief investment officer, said Thursday in a telephone interview. “We’ve gotten ourselves into a tough spot.”

Mark Spitznagel

Photographer: Misha Friedman/Bloomberg

Spitznagel, 51, ...