Threat to Credit Corp's Earnings From Recent Rate Hikes More Significant Than Previously Expected

Credit Corp is a major purchased debt ledger, or PDL, acquirer in Australia, with long-term share of 35%. It is also currently the fourth-largest player in the U.S. market with a share of around 11% in fiscal 2023. PDLs are mainly acquired from banks and financial institutions, and are mostly unsecured credit card debt that are at least six months in arrears and already been through a collection process. Other forms of debt purchases include outstanding telephone or utility bills.