Enhance Gemini AI Integration with Static Fallbacks

Added static fallback scenarios for AI integration failures.

Author: adamvangrover

showcase/data/adam_daily/2026-05-28/apollo.html

@@ -755,7 +755,7 @@ <h2 class="text-2xl md:text-3xl font-bold mb-4 flex items-center gap-3">
             initCharts();
         });
 
-        // 5. Gemini AI Integration
+        // 5. Gemini AI Integration with Static Fallbacks
         const apiKey = ""; // Exec environment provides this
 
         async function fetchWithRetry(url, options, maxRetries = 5) {
@@ -787,6 +787,80 @@ <h2 class="text-2xl md:text-3xl font-bold mb-4 flex items-center gap-3">
             }, 500);
         }
 
+        function getStaticFallbackHtml(input) {
+            const lowerInput = input.toLowerCase();
+            let html = "";
+            
+            if (lowerInput.includes("150bps widening") || lowerInput.includes("high-yield spreads")) {
+                html = `
+                    <div class="flex items-center gap-2 mb-4">
+                        <span class="text-brand-alert bg-red-100 p-1 rounded">⚠️</span>
+                        <span class="text-xs font-mono text-brand-secondary bg-gray-200 px-2 py-1 rounded">STATIC MODE SIMULATION</span>
+                    </div>
+                    <h3 class="text-xl font-bold text-brand-primary mb-4">Scenario: High-Yield Spread Shock</h3>
+                    <div class="space-y-4">
+                        <div class="bg-white p-4 rounded border border-gray-200 shadow-sm">
+                            <h4 class="font-bold text-brand-text mb-2 border-b pb-1">1. NAV Impact</h4>
+                            <p>Estimated mark-to-market drop of <strong class="text-brand-alert">-6.5% to -8.2%</strong> across diversified private credit vehicles. The daily pricing model immediately prices in the spread widening, destroying the historical quarterly lag buffer that previously insulated NAVs.</p>
+                        </div>
+                        <div class="bg-white p-4 rounded border border-gray-200 shadow-sm">
+                            <h4 class="font-bold text-brand-text mb-2 border-b pb-1">2. BSL Collateral Quality</h4>
+                            <p>CLO structures face severe stress. The sudden spread widening triggers MVOC (Market Value Overcollateralization) test failures in marginal CLOs. CCC-rated buckets instantly breach 7.5% limits as downgrades cascade, forcing cash flow diversions from equity tranches.</p>
+                        </div>
+                        <div class="bg-white p-4 rounded border border-gray-200 shadow-sm">
+                            <h4 class="font-bold text-brand-text mb-2 border-b pb-1">3. Sector Vulnerability</h4>
+                            <p><strong>Tech/SaaS</strong> (due to high leverage multiples) and <strong>Healthcare Rollups</strong> face the most severe repricing, with secondary bids dropping into the low 80s as broad index liquidity evaporates.</p>
+                        </div>
+                    </div>
+                `;
+            } else if (lowerInput.includes("10b in redemptions") || lowerInput.includes("cre sectors")) {
+                html = `
+                    <div class="flex items-center gap-2 mb-4">
+                        <span class="text-brand-alert bg-red-100 p-1 rounded">⚠️</span>
+                        <span class="text-xs font-mono text-brand-secondary bg-gray-200 px-2 py-1 rounded">STATIC MODE SIMULATION</span>
+                    </div>
+                    <h3 class="text-xl font-bold text-brand-primary mb-4">Scenario: Redemption Liquidity Crunch</h3>
+                    <div class="space-y-4">
+                        <div class="bg-white p-4 rounded border border-gray-200 shadow-sm">
+                            <h4 class="font-bold text-brand-text mb-2 border-b pb-1">1. NAV Impact</h4>
+                            <p>Estimated mark-to-market drop of <strong class="text-brand-alert">-5.0% to -7.5%</strong>. Forced selling to meet the massive $10B redemption queue drives down bids aggressively across the entire credit platform as the illiquidity premium is stripped away.</p>
+                        </div>
+                        <div class="bg-white p-4 rounded border border-gray-200 shadow-sm">
+                            <h4 class="font-bold text-brand-text mb-2 border-b pb-1">2. BSL Collateral Quality</h4>
+                            <p>"Reverse adverse selection" takes hold. Managers are forced to liquidate their most liquid, highest-quality first-lien loans just to meet the redemption gate, leaving the remaining portfolio heavily concentrated in toxic, illiquid, and lower-rated tranches.</p>
+                        </div>
+                        <div class="bg-white p-4 rounded border border-gray-200 shadow-sm">
+                            <h4 class="font-bold text-brand-text mb-2 border-b pb-1">3. Sector Vulnerability</h4>
+                            <p><strong>CRE Mezzanine</strong> debt functionally marks to zero in clearing scenarios. <strong>SaaS</strong> cash flow loans see valuation multiples compress rapidly from 15x to 9x, triggering technical defaults across the covenant-heavy portions of the book.</p>
+                        </div>
+                    </div>
+                `;
+            } else {
+                html = `
+                    <div class="flex items-center gap-2 mb-4">
+                        <span class="text-brand-alert bg-red-100 p-1 rounded">⚠️</span>
+                        <span class="text-xs font-mono text-brand-secondary bg-gray-200 px-2 py-1 rounded">STATIC MODE SIMULATION</span>
+                    </div>
+                    <h3 class="text-xl font-bold text-brand-primary mb-4">Scenario: Custom Market Shock</h3>
+                    <div class="space-y-4">
+                        <div class="bg-white p-4 rounded border border-gray-200 shadow-sm">
+                            <h4 class="font-bold text-brand-text mb-2 border-b pb-1">1. NAV Impact</h4>
+                            <p>Baseline algorithmic stress test indicates an immediate <strong class="text-brand-alert">-3.0% to -5.5%</strong> repricing event under the daily mark-to-market regime, wiping out YTD yield generation instantly.</p>
+                        </div>
+                        <div class="bg-white p-4 rounded border border-gray-200 shadow-sm">
+                            <h4 class="font-bold text-brand-text mb-2 border-b pb-1">2. BSL Collateral Quality</h4>
+                            <p>Increased volatility pressures interest coverage ratios (ICRs) across the board. CLO equity tranches halt distributions as overcollateralization cushions thin out, forcing mezzanine tranches to absorb the shock.</p>
+                        </div>
+                        <div class="bg-white p-4 rounded border border-gray-200 shadow-sm">
+                            <h4 class="font-bold text-brand-text mb-2 border-b pb-1">3. Sector Vulnerability</h4>
+                            <p>Highly leveraged sectors relying on forward EBITDA add-backs and those with significant duration mismatches face immediate downgrades and bid-ask spread blowouts.</p>
+                        </div>
+                    </div>
+                `;
+            }
+            return html;
+        }
+
         async function runAiSimulation() {
             const input = document.getElementById('scenario-input').value;
             const errorMsg = document.getElementById('ai-error-msg');
@@ -808,6 +882,24 @@ <h2 class="text-2xl md:text-3xl font-bold mb-4 flex items-center gap-3">
             loading.classList.add('flex');
             resultsDiv.classList.add('hidden');
 
+            // --- STATIC MODE CHECK ---
+            const isOfflineMode = !apiKey || apiKey.trim() === "";
+
+            if (isOfflineMode) {
+                // Simulate network/processing delay for static mode
+                await new Promise(resolve => setTimeout(resolve, 1500));
+                
+                resultsDiv.innerHTML = getStaticFallbackHtml(input);
+                resultsDiv.classList.remove('hidden');
+                
+                btn.disabled = false;
+                btn.classList.remove('opacity-50', 'cursor-not-allowed');
+                loading.classList.add('hidden');
+                loading.classList.remove('flex');
+                return;
+            }
+            // --- END STATIC MODE CHECK ---
+
             const systemPrompt = `You are a Senior Risk Analyst evaluating a Private Credit portfolio. Apollo Global Management has just transitioned its $830B credit platform to 100% daily pricing, destroying the traditional "illiquidity premium" and exposing actual market volatility. 
             
             The user will provide a macroeconomic shock scenario. Your job is to predict the immediate fallout on the Broadly Syndicated Loan (BSL) market and Private Credit NAVs under this new transparent DAILY pricing model.
@@ -840,9 +932,14 @@ <h2 class="text-2xl md:text-3xl font-bold mb-4 flex items-center gap-3">
                 resultsDiv.innerHTML = text;
                 resultsDiv.classList.remove('hidden');
             } catch (error) {
-                console.error("Simulation Error:", error);
-                errorMsg.innerHTML = "Error connecting to the AI Simulation Engine. Please try again later.";
-                errorMsg.classList.remove('hidden');
+                console.error("Simulation API Error, routing to static fallback:", error);
+                
+                // Route to static fallback if live API fails
+                let fallbackHtml = getStaticFallbackHtml(input);
+                fallbackHtml += `<p class="mt-4 text-xs text-brand-alert border-t border-gray-200 pt-2 text-right">Note: Live API connection failed. Displaying simulated static fallback data.</p>`;
+                
+                resultsDiv.innerHTML = fallbackHtml;
+                resultsDiv.classList.remove('hidden');
             } finally {
                 btn.disabled = false;
                 btn.classList.remove('opacity-50', 'cursor-not-allowed');