This chapter explores the impact of rising interest rates on debt purchasers, including higher portfolio prices, declining money multiples, and the squeeze on collection costs and free cash flow. It also discusses the low hanging fruit effect and the manipulation of results through marked model accounting.
Debt purchasers must soon decide how they plan on addressing upcoming maturity walls, but they are facing scrutiny over their business models.
For this week’s episode of our podcast, host Sammy Cole sits down with 9fin’s Nathan Mitchell and Matthew Hughes to talk through debt purchaser predicaments, their options and predictions for the years ahead.
“Our attention has been on three key players – Intrum, Lowell, and AFE. They all face similar challenges so it will be fascinating to see who emerges as the winner(s)”