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 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...

...& 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...

...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...

...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.