Intrum - comment

The debt collector reported Q3 figures today, but the more interesting part from our point of view was slide 7 (below). While we may not be going through another Financial Crisis at the moment, the current challenges' cycle and timing may resemble the shape between 2008 and 2011. This would mean up to two years of weakness in the Portfolio Investments business, before recovery. Fortunately, for Intrum, it is very well diversified - not only geographically, but also due to its large servicing business, which should run somewhat counter-cyclically. We have also established why there won’t be material write-downs of the back-book due to the rises in inflation and rates.