Intrum - comment

Shares are up this morning and bonds are firm, but from our perspective the results were disappointing. Q4 Collections performance down by 8 percentage points is worse than what we had forecast and Servicing margin continues to fizzle with more volume expansion in the lower margin North of Europe vs. stable volumes in the south. Cash is better as the company has not yet worn as much of the turnaround costs and will face those in FY24. There is plenty to update, but we see little positive momentum for the shares going forward, so are wondering if we’d like to pare a long in the bonds with a short in the shares. More on that another day.