Debt Collectors to Lead Consumer Finance Recovery, JMP Says

Debt buying and collections companies including Encore Capital Group and PRA Group should see “accelerating portfolio growth two to four quarters earlier than their lending counterparts looking to re-engage the consumer,” according to JMP Securities.

• ECPG shares rose as much as 36%, the most intraday since 2016, while PRAA gained as much as 14%
• The firm sees “a more favorable domestic market structure compared to prior economic cycles,” analyst David Scharf said in a note.
  • “In contrast to the dynamics in place entering the severe 2008 downturn, the industry has far less competition, significant barriers to entry, more rational late-cycle ...