Consumer Portfolio Services (CPS) is preparing a securitization deal worth $332.7 million backed by subprime auto loan receivables, according to a presale report from Standard & Poor’s Ratings Services. The transaction is expected to close April 20.
The loans in the CPS Auto Receivables Trust 2016-B have a weighted average Fico of 564, a weighted average seasoning of less than a month, and a weighted average original term of 67.4 months.
This shows only a marginal difference from CPS’ 2016-A issuance of $340 million, which was backed by loans with an average Fico score of 565, and the same weighted average seasoning and average loan term.
CPS’s portfolio increased 24% to more than $2 billion at the end of 2015, up from $1.6 billion at the same time the year prior, according to Standard & Poor’s. Net losses also increased year over year to 6.44%, up from 5.86% for the year ended Dec. 31, 2015.
Consumer Portfolio Services saw a drop in quarterly auto contract dollars, but the company remains “pleased” with its operating results for the fourth quarter of 2015, Chief Executive Charles Bradley previously said in a press release. CPS purchased $269.2 million of new contracts during 4Q15, down from the previous quarter’s $287.5 million, but up 1.8% from the same time a year prior.
