Vikram Atal : Yes, just to supplement Rakesh’s outline. So David, we’re looking at cash initiatives, cash generating initiatives in the US covering both the legal sphere and the non-legal activity. And as I mentioned in my remarks, we are seeing tangible and meaningful opportunities that we are now starting to execute against on both. With regard to leveraging lower cost locations, I mentioned that too we are exploring and are rolling out some items this quarter and we’ll be exploring piloting other items in the first quarter of next year that extend to both voice and data processing. So you’ll be hearing more about that as those programs evolve over time.
Operator: Next question comes from Bob Napoli of William Blair.
Bob Napoli : Thank you. Maybe following along the same line of questioning as David. I think you mentioned getting the cash efficiency ratio into the low 60s. I’m sorry, over what time frame and what’s the visibility to getting there? I think you had mentioned 2024, but just any color on the improvements. I mean, it’s a pretty big improvement in the efficiency ratio.
Vikram Atal : Sure. Bob, I take that. As Rakesh mentioned in his remarks, we’re looking at a fairly stable cash efficiency ratio for the fourth quarter. And folks probably know they are on this call, fourth quarter is generally a seasonally sort of softer quarter for cash generation, right? So, and in the first quarter that’s generally been seasonally higher than the U.S. in terms of cash connections. So the cash efficiency ratio might improve. But I think if you’re asking the question about from a secular perspective when should we see the lift in the cash efficiency? At this point, we’re looking at the back end of 2024 is when we would start seeing the impact of the higher pricing combined with the initiatives falling into place and coupled with the expense initiatives that we’ve got that are offsetting some of the natural growth that we need to have in our business for covering expanded volumes and covering potentially more legal activity.
Bob Napoli : Thank you. That’s helpful. Then I guess if I look at your stock today, it’s trading below tangible book value. And I don’t know that if you even go back to the great financial crisis, the stock, your PRA never traded below tangible book value. But you look at the underwriting that you’re doing for the purchases, what type of an ROE do you think you’re underwriting to? I mean, what is the target? You must have a, I mean, it all rolls up into an ROE. So, just then, how are you managing the returns on your underwriting? What kind of return level are you targeting?
Rakesh Sehgal: Yes. Hey, Bob. It’s Rakesh. Look, our goal is to ultimately create shareholder value. So what I will tell you is we obviously look at the gross multiples that you’re looking at, but we also have recalibrated our net return thresholds, both here in the Americas as well as in Europe. And the new vintages where we originating is with the idea to make a meaningfully improved return versus what we saw over the last couple of years. So I won’t get into specific numbers, but rest assured, we are writing at numbers that is going to make us profitable. And to your point, look, there are cash efficiency, efficiency is a metric that I understand for your purposes folks have looked at, but all these initiatives are being undertaken.
We are looking at our return on investments on each of those initiatives because we want to spend the money to ultimately make more money and make it in a more cost efficient manner. So, we’re looking at different metrics and KPIs internally to ensure we are delivering shareholder value over the long term.
