Consumer Portfolio Services has closed on its fourth securitization of subprime auto loans of the year.
The deal, CPS Auto Receivables Trust 2014-D, issued five classes of notes rated by Moody's Investors Service and DBRS. The weighted average effective coupon on the notes is approximately 3.07%, according to a press release CPS issued Wednesday.
The $178.6 million class A notes have an average life of 1.21 years and are rated Aa2’ by Moody’s and 'AAA' by DBRS; in a press release published Wednesday the company disclosed that they yield 1.49%.
The $40.1 million class B notes with an average life of 2.97 years and Aa3’/'A' ratings yield 2.95%; the $28.1 million class C notes with an average life of 3.7 years an 'Baa2'/ 'BBB' ratings yield 4.35%. There are also two classes of notes with an average life of 4.08 years: the $12 million class D notes are rated 'Ba3'/ 'BB' and yield 5.33% while the class E notes are rated 'B2'/ 'B' and yield 6.21%.
The transaction includes about 31.9% prefunding; CPS has two months following the close to acquire additional collateral. As a result, the final collateral pool will be different from the initial pool of approximately $182 million.
CPS has been a regular ABS issuer since 1994 but monoline insurers have wrapped the majority of the 60 transactions it has completed. The company has completed 15 senior/subordinate transactions since 2010.
Citigroup is the lead underwriter and Wells Fargo Bank is the backup servicer, custodian and the deposit bank for the lockbox account, which safeguards assets once the loans have converted to cash.