Intrum - Positioning

We are taking the short off this morning. Following the news that Cerberus had bought Intrum’s minority stake in the JVs, we had shorted the €’27s at 96.75 earlier this month on the suspicion that Intrum might hit us with another round of restructuring or at least further adverse capital measures of sorts, but the strategic review released this morning contained no such plans. Meanwhile, Portfolio Investments continue slow, but although collections continue at SEK -170m vs. our forecast and CMS Income is now falling 10% short by the same measure, margins are better than expected and estimated EBITDA (not Cash EBITDA) contribution in each segment slightly beats our expectations. We will update in due course. Well done, Intrum.