CPS Aims for Highest Securitization Rating

Independent auto finance company Consumer Portfolio Services continues to grow its portfolio amid increasing interest from dealers.

That was the message from President and CEO Charles Bradley Jr. in the company’s earnings call yesterday, according to a transcript on SeekingAlpha.com.

In the past year, CPS’s portfolio shot up 37% to $1.2 billion. And at the National Automobile Dealers Association conference this month, Bradley was “pleased” to see dealers actively pursuing companies like CPS to expand on lending opportunities.

In the call, Bradley also gave a peek into the thinking and role of Wall Street in auto finance. He said the ABS market looks strong, noting at least a half dozen auto and subprime deals where execution has improved compared with the fourth quarter. CPS, for one, completed a $183 million securitization in December 2013.

Speaking of Wall Street money, Bradley said there is lots of it out there. “They want to buy these deals,” he said. “They have lot more faith in auto and so the execution is very good.”

CPS Chief Investment Officer and SVP Robert Riedl added that as the company “hopefully” continues to grow its profitability and deleverage its corporate debt, it will get its senior tranche up to AAA-rating. “I think there is a good probability of that,” he said. “We will continue working with the agencies to try to push them there.”

Exit mobile version