One of the things that all companies in the PDL busines...

One of the things that all companies in the PDL busines experience, is that the debtors who agree to a formalised repayment schedule have a relatively high tendency to honour the agreements. From memory, I think about 80% of CCP's collections flow from such arrangements.

I also wondered if CCP negotiated inducements to get the debtors to agree to repayment arrangements, and I assumed that it may well do so. Whatever it does, we can deduce from the amortisation/collections ratio that CCP collects the reciprocal of that ratio. Consequently, if the amortisation/collections ratio is typically about 47%, then CCP typically collects 1/47% = 2.13 times what it pays for PDLs.

If CCP dampens its rate of purchasing PDLs for a while, and focuses on collecting older debt, as was the case for two stints of time over the last decade, then the amortisation/collections ratio would drop a bit, but the cost-to-collect would tend to be higher.

I did not mention the matter of concessions to get repayment agreements in my previous post, because I had no feel for what the concessions might be. Concessions are probably a mixture of fiddling the principal sum owed, and the interest rate applied. The latter could be effected by conceding interest-free windows of time. This is an area where there may be a difference between CCP and the likes of CLH and PNC. I simply do not know enough to opine on the matter.