Being old school financier (60s to 80s) before the current regs...

Being old school financier (60s to 80s) before the current regs were put in place means that I only partially understand the way in which profit is calculated. I do understand DCF. But I do agree that it is a leveraged figure with a degree of future profit within it. I tend to look more carefully at the cash flow of these sorts of entities as it determines what actual cash figures are coming in and going out. All that aside I agree with what you are saying and I will go back to a previous post of mine where I stated that a reduction of early repayments/collections is a problem as it inhibits the ability to maintain the momentum of PDL purchases organically. However you will note that the presentation points out the increase in 3&4year old PDL collections which would tend to represent more profitable revenue. This would offset the short term collection reduction to some extent. I do not think any real evaluation can be made until next set of accounts are published. This is why the funding bodies take so long to come to the conclusion that these types of companies are OK to fund. If PNCs funding bodies are accepted as having done their due diligence well then it can be assumed that the 11% rate and the incentives given as well point to the level of the risk and any investors should look at that as being a good guide as to the risk they are taking initially. They should then check any catalysts which might be forthcoming and work them against the risk - and there do seem to be some.