PRA Group (PRAA) has been a frustrating stock to follow and own lately, as management’s performance on margins has been underwhelming, while continuing to use leverage to buy more charged-off debt. A still-healthy economy is helping on the collections side, while rising charge-offs point to more supply in the relatively near future.
I’m still concerned about the possibility that there has been a permanent change in PRA Group’s core market and that collections margins will never be what they once were. Likewise, PRA’s sheer size is a limit to how much cherry-picking the