Sounds like we're going to get a hefty write down of the PDL book, and maybe to a lesser extent the loan book as they mentioned that is still within expectations. Knowing how much of write down would need to occur for a 15% decline in collections is a bit beyond my pay grade, however if cash collections are down 15%, then simplistically those PDLs may be worth 15% less if it is deemed permanent. That would be write down of 75m as of 30 Dec PDL numbers. If lending is written down 5% that would be another 10m. Most of the capital raise in effect could be just covering for the coming write down. However, with that covered plus existing facilities, I guess that's why their expecting earnings trajectory to return in the 'medium term'.
CCP Price at posting:
$14.14 Sentiment: None Disclosure: Held
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