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We had our first two Private Credit defaults that I was informed of today.
The first company is a Singaporean electronics manufacturing company. The court case will be on the 06th of May.
After passing a grace period & being paid the 1st principal plus interest tranche (50%)...
The first company is a Singaporean electronics manufacturing company. The court case will be on the 06th of May.
After passing a grace period & being paid the 1st principal plus interest tranche (50%)...
...the Coronavirus has made the situation difficult to receive the 2nd (50%).
The principal plus interest outstanding is around 1% of our capital managed, so we aren't in some dramatic position.
Nevertheless, I assume many private business loans, real estate loans...
The principal plus interest outstanding is around 1% of our capital managed, so we aren't in some dramatic position.
Nevertheless, I assume many private business loans, real estate loans...
...& publicly traded debt — which is of lower quality — might see much higher default rates & much lower recovery rates in the coming months.
Our Singapore lawyer informed us that our case is pretty strong.
Regarding the 2nd Private Credit investment, it is a tiny loan made...
Our Singapore lawyer informed us that our case is pretty strong.
Regarding the 2nd Private Credit investment, it is a tiny loan made...
...to a Taiwanese semiconductor company.
Nevertheless, regardless of how small it is, one must treat all principal invested, even the smallest portions, with respect.
We hold a personal as well as corporate guarantees, so in the worst-case scenario, our lawyers might even...
Nevertheless, regardless of how small it is, one must treat all principal invested, even the smallest portions, with respect.
We hold a personal as well as corporate guarantees, so in the worst-case scenario, our lawyers might even...
...sue the directors for their personal assets to try & recovery at least some of our principal investment made.
Interesting times ahead for the whole for the global economy.
I think most Wall Street analysts who expect a V-shaped recovery might be in for a rude surprise.
Interesting times ahead for the whole for the global economy.
I think most Wall Street analysts who expect a V-shaped recovery might be in for a rude surprise.
