@Goodfella58CCP will have to write down their receivables [This is your strongest point] and may breach banking covenants [Someone has already posted when the facilities mature and what the LTV coverage is. There is also a net asset ratio. Then you can calculate the sensitivity to the FV of the PDLs to these ratios.Then think about what options CCP has to address any issues prior to breaching convenants. There are multiple.] and the greatly reduced appetite for credit will make new PDL,s hard to come by. [ I would think it will the be opposite and CCP will have the opportunity to price for expected recovery. They will need the equity to support PDL buying.]
Banks facing reduced appetite for credit will look to maximise returns from existing defaults and simply offer repayment plans in the same vien that CCP have.[Very unlikely. Banks won't be allocating capital to the debt collection business any time soon given their recent experience with wealth management and current environment. ]
While S&P’s U.S. unemployment forecasts are high, they pale in comparison to some others — for instance that of the St. Louis Fed, which on Monday predicted total U.S. unemployment reaching as high as 47 million people, or a devastating 32.1% — higher than the Great Depression peak of 24%.[How much profit does CCP generate from the U.S.? It is very easy to find]
(20min delay)