Roy2U et al What I meant to include in my previous post is that...

Roy2U et al

What I meant to include in my previous post is that when considering opportunities for deploying the extra $155m in funds, and the speed of deplyment, we should be realistic, not automatically bearish. Each individual's ideas of what is realistic is different, but at least remain realistic within your own personality. If you get to your realistic valuation, you can always apply a margin of safety to develop your buy price, and that is not the same as your sell price.

I think the newly-raised funds are going to be quickly and profitably deployed, and this should last for a few years. The last few years have been more competitive for CCP than usual, so if anything, the next two to three years should be good, IMO.

Investment-in-PDL money returns quickly. By about fifteen months the funds expended to buy a PDL have usually been collected. CCP does not have to park cash for a rainy day, because collections roll in continuously, and are tipped into the bank. Provided the banking-facility's headroom (backed by a conservative valuation of PDLs) exists, CCP need not keep jars of cash in the pantry - the banking facility headroom suffices admirably (and it is what CLH and PNC do not have).

The H1FY20 presentation, page 11, shows that committed funds including foreward flow commitments were $298m with another $10m to 10m added to the forcast. A disproportinate share of the PDL acquisitions were slated for NZ, and Australia and USA were slated at FY19 levels of acquisition. This suggests to me that the bulk of the extra funding deployed into PDLS would go to Australia to take up the slackening demand of CLH and PNC for PDL acquisitions and forward-flow commitments.

The progress of building capacity in the Washington State collection centre in delayed due to Covid-19 lockdown, so there may be a limit to what CCP chooses to deploy to the USA for six months.  much of it PDLs and foreward-flows that CLH and PNC must ignore. This should change by H2Fy21.

One thing that I had not earlier known is that the Philipines collection centre is less productive per person, but it is used to collect on lower quality debt (telecommunications and utilities PDLs) that are less collectible, but cheaper to buy. CCP would probably avoid that style of debt for now in the USA, and in Australasia, buy as much of it as the Philippines centre can handle. Baycorp had a collections centre there, so there may be two of them now.