Agency collections also allows the service providers to get...

Agency collections also allows the service providers to get closer to the debt holders, and that may help if the holders also sells PDLs. I say, “may” because some organisations (e.g., the ATO) may use a collections agent, but never sell the debt.

I would like to see Agency split into its own segment, and I would like to see it grow too. Some of the debt collected on an agency basis (e.g., Telcos and Utilities) is of lower quality, because of the absence of initial credit checks, so the ratio of collection effort is generally higher than for bank debt. It is this high-call business that is better suited to be off-shored to collections facilities like Manila, which has lower wages, probably lower staff churn, but shares a desirable time zone. This is why I have harped on the USA operation looking to Mexico, Puerto Rico or other western-hemisphere locations that suit CCP's North American operations.

Further on Manila, before it was acquired, Baycorp also had a collection centre in Manila. I am unsure if CCP has merged the two into one centre, or not. It makes some sense to have two centres to backup each other to handle disruptions.

On loans, the many sub-markets for loans make it difficult to discuss here, but CCP would well know what is worth considering, so we can leave Management to the task of choosing what to do. Motor vehicle loans are likely to be reconsidered, and Wallet Wizard tweaked to complement the BNPL scene in respect to larger purchases. I think we can safely say that the Loans business will grow, but whether CCP expands that business to a niche market in North America is another matter.

I mentioned “fair value” when writing about Don McLay recently. I do not have a specific metric for fair value, but in very loose terms I would see $30 to $35 as fair value. That does not exclude that range shifting in future, and the shift is more likely to be upward, rather than downward. It is the future Management Guidance for EOY EPS that would incline me to shift the range.