Agree, as more default on debt, debt purchasing will become...

Agree, as more default on debt, debt purchasing will become cheaper. But the countervailing force is that the quality of the debt may decline. You should also note that the time to recover the cost of debt purchased by CCP is measured in years, so the effect of cheaper debt purchases would not be felt for some time.

With interest rates also declining, CCP's financing costs will decline modestly, and with management suggesting that they will be able to manage the same profit in 2009 as 2008 (before restructure costs - which effectively means about double 2008 profit), it is certainly looking cheap.

Unless it all falls in a heap!