Ann: CEO AGM Presentation, page-37

I have seen neither general nor CCP-specific news that should bode ill for CCP. Mr Market is a news junky, and the absence of news inclines him to expect the worst to happen. That said, the word that one should always bear in mind as a CCP shareholder is "different".

CCP's customer demographic is different to that of the general population, so their lending profile is different, which makes macro-economic news on debt and defaulting thereon difficult to assess. PDL availability at non-toppy prices does follow macro trends more closely than the short-term lending on which Wallet Wizard (WW) focuses on, so even if PDL supply is limited, CCP can deploy investment funds into the WW Loan Book. To a degree, supply of PDLs in ANZ is different to the supply in the US (currently Australasia lags the US). It is a mistake for investors to be too focused on CCP as a debt buyer (and ignore WW), or to focus too much on ANZ.

The other area of difference is CCP's pattern of business behaviour vis-a-vis so-called peers. Low debt leverage and low use of litigation are manifestations of CCP's difference. If CHL and PNC are in trouble, that is unique to their business behaviour in so far as Australasia is concerned relative to the PDL business. Beyond Australasia, there are diferences too in respect of debt leverage, proclivity to litigate and non-PDL lines of business.

Vive la difference.