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Things Heating Up!
Well the market is beginning to heat up. There is plenty of debt on the market for sale. As we discussed on the October 1st show, credit card volume was up to more than $100 billion in losses. We mentioned other consumer products doubled that amount.
There have been some very large debt sales of consumer services in recent months that include wireless telecommunication,utilities (gas, electricity and water) and others. The good news is prices are the lowest they have been since the early 1990’s.
Yes, the economy is slow and unemployment is up, but remember the pricing is based on the expected returns in today’s economic conditions. When the economy starts to recover, the returns that are projected over a 3 year time line will begin to climb, exceeding the expected return.
I believe there is a window of opportunity. How long that window remains open is still in question, however I do not believe it will remain open beyond the first quarter of 2009.
Dennis Hammond — President, THE DEBT MARKETPLACE, INC. (1994 - Present) Vice President, Resource Management Services, Inc. (1986 - Present) Mr. Hammond is President of THE DEBT MARKETPLACE, INC., formed in 1994 to provide consulting services regarding risk issues affecting creditors and purchasers in this dynamic and evolutionary market of delinquent receivables sales. He is responsible for consulting on more than $20 billion in delinquent debt portfolio sales. A large number of the portfolios he has brought to market were the first of their kind in the industry. He conducts educational courses in how to buy and sell debt through his Buyer/Seller 101 - and Passive Debt Buyer training programs. He is co-founder and former Executive Director of DBA International, Inc. (fka: Debt Buyers' Association). He was responsible for the development and growth of this thirteen year old, non-profit trade association. DBA International is committed to education, integrity and professionalism in the debt buying industry. He is the recipient of the 2004 Donald Kramer Award for his contributions to the legal collections community.Category: Author, Dennis Hammond, The Stock Market | Tags:
