It is only stubbornness that induced me to look for the source of my staff poaching comment. This follow-up post does not solve the matter, but my search threw up unrelated facts of minor interest.
I have for years assumed that CCP buys PDLs at about 20c in the dollar. But in recent times I have mentioned Thomas Beregi telling Alan Kohler that the range was a few cents to 35c. I presumed that 35c was too high to be statistically meaningful. Anyhow, I stumbled on that interview today, and Beregi mentioned 25c, not 35c. See disallowed link/investment-news/debt-ledgers-credit-corp-group/145441, and
The typically price per dollar would be less than 25c, and in the post Covid-19 milieu, less than 20c. It is not that important, because the buying price is set to make a target hurdle of profit. However, I would like to get a better fix on the range. Without reference to CCP, the bit at https://www.copyright link/companie...m-casts-focus-on-ledger-sales-20190814-p52gz7 stated, “Debt collectors can earn commissions for reaping outstanding amounts on behalf of companies such as banks. They can also purchase the whole debt ledger for a discount price – 20¢ in the dollar for example – and aim to recoup more.”
I think that Beregi also said in that interview with Alan Kohler that CCP did well post-GFC, because it got spooked into fearing a worse outcome than actually happened, and CCP bought PDLs at a discount. If it is in Beregi's nature to fear the worst when faced with unknowns, he may have done so with Covid-19.
CCP Price at posting:
$18.94 Sentiment: Hold Disclosure: Held
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