MaritSolblad-41

Monthly report April 2022 - SCF I

Scandinavian Credit Fund I AB (publ) reports a NAV rate for April of 102.32.

It is an increase of 0.65 (0.64 %), it is a very good month.

The inflow for the month of April is SEK 23 million, thank you very much for that.

New lending in April is approximately SEK 22 million.

As previously mentioned, we have sold a property in Norrtälje that the fund has mortgaged before. Now the access accounts are ready and the surplus can be added to the result for April, it is about 10 bp. It gives a little extra boost to NAV in April and shows how our handling of mortgaged objects works and is for the benefit of your unit holders. All value increase in these objects accrues to the unit holders of 100%.

Our lending objects do well given the information we currently possess, we of course follow all companies as closely as under covid. We continue with the work to liquidate companies that we have mortgaged and I will return when I can reveal more about this.

The market

Inflation unrest, central banks and covid in China are what are affecting risky assets and the bond markets right now. The war in Ukraine is lurking in the background like an extra cloud of unrest.

Fed members are vying to be the most hawkish member right now, sending growth stocks straight down into the basement. The Fed put that previously existed is gone, now it is inflation fighting that applies to 100% and Nasdaq has gone lousy so far this year.

The Riksbank made a U-turn and I'm glad that, however, their interest rate path is probably a little too low, I think they need to raise a little faster and a little more, but well done to change.

Below you can see that the market has moved up the interest rate paths since last month and that the US will start easing monetary policy in about 18 months. That is, the Fed raises too much too fast.

Covid in China risks upsetting it for world trade, again hoping that the bottlenecks that have arisen will dissolve as soon as possible.

There is nothing today that indicates that 2022 will be a quiet year in the financial markets.

 

(source Bloomberg)

I can not help but make a comparison with a long Swedish bond fund since SCF I started. It is challenging to motivate investing in a government bond fund when there are other alternatives such as SCF I.