Intrum - comment

The confirmation of Intrum’s restructuring plan in Texas is good news for the vast majority of bondholders, even though it is mostly priced in. We suspect the share price will only be temporary, as the road to recovery will be slow and steady at best. Execution risk is now much reduced as the name becomes almost entirely a bet on how fast the company can grow its servicing arm. We don’t see the underlying portfolio market become sufficiently attractive for another year.