The debt buying market, which has been depressed since the onset of COVID, showed its first signs of recovery in December, according to Pioneer Credit. The company released its results for the six months to December last week, reporting that: “Until early December, purchased debt portfolio investment was behind our expectations as we waited for the market to normalise from the events of the past three years. That is now occurring.” The company invested A$42.4 million in debt purchases during the half, compared with $23.7 million in the previous corresponding period. It has a portfolio of 41,000 customer accounts with $460 million of “performing arrangements”. Despite the increase in debt buying, the value of the portfolio fell from $464 million in the June half last year. Cash collections of $68 million were up 40 per cent on the previous corresponding period. The company had the benefit of a significant interest rate reduction, thanks to refinancing in November.  The company reported a loss of $1.3 million, compared with a loss of $22.8 million in the previous corresponding period. The company has been a loss-maker for the past few years. In August last year, the company’s chair at the time, Michael Smith, said: “Clearly our processes and practices need strengthening, notwithstanding working closely with our auditors on these matters. This has the board’s focus.” The latest result is clearly an improvement but still a loss. Pioneer Credit chief executive Keith John said in his results commentary that he expects the improved debt buying conditions to continue.  John said: “Pleasingly, the number of vendors returning to the market and the size of their portfolios available for sale increased measurably very late in the half. We expect this trend to continue through calendar year 2023, with the opportunity for Pioneer to grow its purchased debt portfolio investment materially from now.”