How can F5 possibly be profitable?

According to the forecasts, annual default rate of 9.49 annually, applied over 5 years gives a loan default rate of 47.5%. The hazard curve then suggests So 24% default against 30% interest in the 1st year.

2nd year and onwards, a severely eroded premium base (even without early repays) , so fall short of recouping default losses through remaining cashflows.