Its seems CCP management were much more conservative and concerned about the impact of Covid. That probably followed on to a feeling that more opportunites would arise as a result of more distress.
To be fair they were able to buy the CLH book which was a solid win. Thankfully the company has a good track record of discipline in capital allocation, so hopefully nothing greedy happens.
Management is incentivsed for ROE however, so they will have to get a wriggle on to lever up a bit to hit those targets. CCP have a few levers to pull in deploying captial. With a few options, that hopefully will insure against overpaying for PDLs to hit short term targets like other competitiors.
CCP Price at posting:
$33.98 Sentiment: None Disclosure: Held
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