Weekly Wrap: Auto lenders eye low cost of funding, rideshare rebound, return to office
Auto lenders are keeping an eye on funding, the rideshare revival and the challenge of navigating the return to offices amid rising COVID-19 cases.
Consumer Portfolio Services, for one, benefited from the low cost of funding on the asset-backed securities market, selling on June 30 $50 million in 7.86% notes backed by residual interests retained from auto securitizations dated January 2018 through September 2020. The new capital enhances CPS’ liquidity position as the lender also continues to grow its auto book.
Rideshare, too, represented a positive note for the auto industry as active riders return to the market. Meanwhile, the pandemic continues to impact how auto lenders conduct business.