Zach Oster

Zach Oster sought more color on the dynamics in the European markets, specifically regarding supply, competition, and the outlook for potential ramp-up. He also asked if the $25 million in Q4 share repurchases could be considered a good run rate for future quarterly buybacks, given the new $300 million authorization.

Answer

Ashish Masih, President and CEO, explained that European supply growth is slow due to subdued lending and low delinquencies, with competition remaining robust. He highlighted Cabot's disciplined deployment and focus on operational excellence. For buybacks, he reiterated that the pace is subject to balance sheet and liquidity, and the recent increase reflects confidence in Encore's future, without committing to a specific run rate.

Zach Oster requested more color on the dynamics in the European markets, specifically regarding the outlook, competitive landscape, and potential for future ramp-up. He also followed up on the buyback program, asking if the $25 million deployed quarter-to-date in Q4 could be considered a run rate for future aggressive buybacks, given the $300 million incremental authorization.

Answer

Ashish Masih, President and CEO, explained that European markets remain similar, with slow supply growth due to subdued lending and low charge-off rates, and a disciplined approach to deployment. He noted Cabot's focus on operational excellence and stable collections performance, exceeding forecast expectations for all three quarters this year. Regarding buybacks, Masih reiterated that the $60 million purchased year-to-date, including the $25 million in Q4, reflects their confidence and is subject to balance sheet and liquidity, without providing a specific run rate.