Intrum - comment

Intrum's €200m tender offer is now completed, leaving €1.13 bn of 7.75s outstanding. Considering management's commentary about returning to debt purchasing, we expect future excess cash to be invested in new portfolios instead of debt tenders at or above par. Our position in the 29s has been sinking two points since the disappointing servicing figures, and the bonds now yield 11% to maturity. We cannot see how these bonds run into trouble again before their maturity. So we still very much like these here.