A post script: US debt buyers eye 'attractive' UK market

On 25 January, I posted on this blog that I thought US debt buyers were ‘eyeing’ the UK market. My view became even more resolute in March after attending the 17th National Collections and Credit Risk conference in New Orleans, so it was with no great surprise that I noted the news yesterday that Cabot had been bought by American private equity investment fund, JC Flowers. This deal means, as predicted, there is now a UK-based purchaser set to benefit from the funding advantage of its new US parent. I believe this will be the first step in an increased internationalisation of US debt purchasers as their domestic market becomes increasingly challenging. This, in turn, is going to significantly impact pricing over here in the UK. Watch this space.

By Stuart Bungay, Managing Director - Strategy, Marketing and International, TDX Group.