Spider
I agree what you wrote, and had thought about it before when CCP bought books from competitors, and again when writing my recemt post here. One can pay a premium for a secondary portfolio of debtors ledgers that has been processed to the point where there is an existing set of performing debtors who have agreed to repayment plans - perhaps all of them, with the non-payers being excluded from the deal. About 80% of CCP's collections come from debtors who have agreed to loan repayment plans.
As I do not hold PNC, and I had written a long post, I did not pursue the issue of performing PDLs, nor use the abreviation PDL, because that is CCP-speak. Other debt buyers use different terminology - for instance, Intrum (in Sweden) refers to "Portfolio Investments".
As an aside, I bought 300 CCP today at $26.04 on the basis that my gut-feel is that CCP should not fall below $30. It is CCP's non-PDL initiatives, and the USA PDL business that inclines me to stay in CCP. Also, I know it well, having watched it closely for years. Also, CCP always delivers at least what it promises, and it updates those guidances three times a year.
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