CCP does not plan to reduce PDL purchases, it merely forecasts what it expects to be able to purchase to meet its return criteria. Being liquid, CCP can rapidly increase purchases if the supply market changes to allow CCP to satisfy its return criteria, and this often happens. At the start of the year CCP announces its forecast of expected PDL purchases for the year, and it announces three adjustments as the year progresses. These announcements also cover things like expected EPS and DPS. The inherent conservatism of management normally results in these forecasts increasing as each year progresses to a close.
The inherent conservatism of CCP's management results in underlying profits being hidden from statutory accounts by generous provisioning, or the other side of that coin, undervaluing financial assets. For instance, loans are generously provisioned initially, and so new loans occasion a statutory accounting loss. Also, CCP amortises PDLs at 47.25% of its PDL collections approximately, whereas CCH amortises at approximately 45.45%, which means that for every $100 of CCH provisioning, CCP provisions $104.
I happen to have information on progressive forecasts in recent years, so here it is (sorry about alignmenty - cut and pasting is the reason - it looked fine in a word processing document):
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