@Wazza3006 I guess it means they can no longer use those future cash flows as a form of security when seeking finance. If the income from arrangements has been sold off to the US hedge fund, then a bank lending to CLH would have no recourse to that future revenue stream should their loan go bad. It would be the same principle behind why a secured home loan costs less than an unsecured personal loan - the former is backed by a proven asset.
Given CLH's high proportion of debt purchase revenue that comes from arrangements - somewhere around 70% - it would be interesting to know what impact this is having on their cost of borrowing.
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@Wazza3006 I guess it means they can no longer use those future...
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