If you look at the core PDL-style business, it did well in H1 of 2020. PRA expects increased PDLs to come to market in 2021, and their cost is lower. PRA's management seems not to have been funked bu Covid-19, and not much is said about it, but the performance metrics do the talking.
PDL revenue and collections increased, but what stands out is the expense containment, so the EPS was significantly improved. Management has invested in technology to aid collections and PDL evaluation, and I suspect that this is what CCP is doing too. I did not investigate the matter of impairment, but I think it was minimal, and hence nothing that I saw mentioned it.
Although CCP may have had a disproportionate volume of fresh PDLs that occasioned more impairment than was the case for the likes of major PDL businesses abroad, I cannot get away from the view that CCP's management, and the Market, overreacted to Covid-19.
CCP Price at posting:
$17.35 Sentiment: Hold Disclosure: Held
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