Actually, what I am starting to realize is that ROE is actually an almost meaningless metric for these companies, because their earnings can be easily manipulated by over investing in debt that has poor long term returns.
What really needs to be done is to calculate the gross cash returns - for each year's debt purchases - and then to discount those cash returns and compare against the original purchase. I guess that this is not something the companies are doing for us in their quarterly reports. Are they even supplying enough information to make those calculations possible, for each individual year's debt purchases?
CCP Price at posting:
$17.40 Sentiment: Hold Disclosure: Not Held
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