Core Viewpoint - NewtekOne, Inc. has successfully closed a $295 million securitization backed by $342 million of Alternative Loan Program (ALP) loans, marking its 17th and largest rated securitization to date [1][2]. Securitization Details - The securitization, named NALP Business Loan Trust 2026-1, involved the sale of $251.88 million in Class A Notes, $35.88 million in Class B Notes, and $6.84 million in a Class C Note, collectively known as the Notes [2]. - The Notes are secured by $341.78 million in collateral, which includes $284.38 million of Company-originated ALP loans and a $57.4 million prefunding account for acquiring additional ALP loans [2]. - The securitization was oversubscribed by approximately ten times, with 32 institutions participating in the purchase of the Notes [2]. ALP Loan Characteristics - ALP loans are characterized as longer amortizing commercial and industrial (C&I) loans, with repayments primarily sourced from the underlying businesses rather than collateral [3]. - The Company mandates that equity owners with 20% or greater stakes personally guarantee the loans, and all business assets are pledged as collateral [3]. - ALP loans typically incur prepayment penalties of 5% for the first three years and 3% for months 36-48, appealing to borrowers seeking long-term amortization [3]. Financial Performance and Strategy - The Company has originated approximately $850 million in ALP loans since 2019, with only six defaults and one charge-off of $6 million, indicating a strong performance in loan origination [4]. - The Class A Notes received a rating of "A (low) (sf)" with a yield of 5.796%, while Class B and Class C Notes received ratings of "BBB (sf)" and "BB (sf)" with yields of 7.296% and 10.146%, respectively [5]. - The weighted average yield of the Notes was 6.08%, with a weighted average spread of 243 basis points, an improvement from the previous year's securitization [5]. Management Commentary - The CEO expressed satisfaction with the completion of the fourth securitization and emphasized the importance of ALP loans in the Company's financial solutions and performance [4]. - The Company aims to continue issuing securitizations backed by ALP loans, highlighting the favorable spreads between loan yields and debt coupons, which support the retirement of securitization debt [4]. - The Company positions itself as a long-term capital provider to independent business owners, contrasting with competitors that offer high-interest, short-term loans [6].

Core Insights - Oportun has successfully issued $441 million in two-year revolving fixed rate asset-backed notes, demonstrating its continued access to low-cost funding [2][5] - This transaction marks Oportun's fourth asset-backed securities (ABS) issuance of the year and the third consecutive deal with a AAA rating on the most senior bonds [5] Financial Details - The weighted average coupon for the transaction was 5.69%, with a weighted average yield of 5.77% [4] - The Class A notes were priced with a coupon of 4.53% per annum, while Class B, C, D, and E notes were priced at 5.31%, 5.80%, 6.97%, and 10.82% per annum, respectively [4] Ratings and Structure - The offering included five classes of fixed rate notes, rated by Fitch as AAA, AA-, A-, BBB-, and BB- [3] - Deutsche Bank Securities Inc acted as the sole structuring agent and co-lead, with Goldman Sachs & Co. LLC, Jefferies LLC, and Natixis Corporate & Investment Banking as co-leads [3] Company Overview - Oportun is a mission-driven financial services company that has provided over $20.3 billion in responsible and affordable credit since its inception [7] - The company has saved its members more than $2.4 billion in interest and fees and helped them set aside an average of over $1,800 annually [7]

Group 1 - Consumer Portfolio Services, Inc. (CPS) announced the closing of its third term securitization in 2025, marking its 56th senior subordinate securitization since 2011 and the 39th consecutive securitization to receive a triple "A" rating from at least two rating agencies on the senior class of notes [1][2] - The transaction involved qualified institutional buyers purchasing $418.33 million of asset-backed notes secured by $433.50 million in automobile receivables originated by CPS, issued by CPS Auto Receivables Trust 2025-C [2] - The securitization notes consist of five classes with varying amounts, interest rates, and ratings, with a weighted average coupon of approximately 5.43% [3] Group 2 - The 2025-C transaction features initial credit enhancement including a cash deposit equal to 1.00% of the original receivable pool balance and overcollateralization of 3.50%, with agreements requiring accelerated principal payments to achieve specified overcollateralization levels [4] - CPS is an independent specialty finance company that provides indirect automobile financing to individuals with past credit problems or limited credit histories, primarily funding contract purchases through securitization markets [6]

Core Insights - AutoNation, Inc. reported second quarter 2025 revenue of $7.0 billion, an 8% increase year-over-year, while diluted EPS decreased to $2.26 from $3.20, and adjusted EPS rose to $5.46 from $3.99 [1][7][10] Financial Performance - Revenue for the second quarter of 2025 was $6,974.4 million, up from $6,480.4 million in the same period last year, reflecting an 8% increase [3][21] - Gross profit increased by 10% to $1,275.4 million from $1,163.1 million [3][21] - Operating income decreased by 21% to $217.6 million from $275.0 million [3][21] - Net income fell by 34% to $86.4 million compared to $130.2 million a year ago [3][21] - Adjusted operating income for the quarter was $369.3 million, a 16% increase from $318.5 million [4] - Adjusted net income rose by 29% to $209.2 million from $162.5 million [4] Segment Performance - Same-store revenue increased by 8% to $6.9 billion, driven by higher new vehicle unit sales and increased average selling prices [8][12] - New vehicle revenue was $3.4 billion, up 9%, while used vehicle revenue increased by 4% to $2.0 billion [8] - After-sales revenue grew by 12% to $1.2 billion, and customer financial services revenue rose by 13% to $363 million [8] - Same-store gross profit increased by 10% to $1.3 billion [8] Capital Allocation and Liquidity - Cash used in operating activities for the first half of 2025 was $230 million, with auto loans receivable net increasing by $695 million [5] - AutoNation repurchased 1.5 million shares for $254 million, with over $607 million remaining under its repurchase authorization [6] - As of June 30, 2025, AutoNation had $1.8 billion in liquidity, including $63 million in cash [9] Market Position and Strategy - The company experienced double-digit growth in customer financial services and after-sales, alongside improved new vehicle market share [2] - The successful completion of a $700 million asset-backed securitization for its auto loan portfolio at a fixed interest rate of 4.90% [9]

Group 1 - The core announcement is about Consumer Portfolio Services, Inc. closing its second term securitization in 2025, marking its 55th senior subordinate securitization since 2011 and the 38th consecutive securitization to receive a triple "A" rating from at least two rating agencies on the senior class of notes [1][2] - The securitization involved the sale of $419.95 million in asset-backed notes secured by $439.29 million in automobile receivables, with the notes issued by CPS Auto Receivables Trust 2025-B [2] - The transaction consists of five classes of notes with varying interest rates and ratings, with a weighted average coupon of approximately 5.96% [3] Group 2 - Initial credit enhancement for the 2025-B transaction includes a cash deposit equal to 1.00% of the original receivable pool balance and overcollateralization of 4.40%, with agreements requiring accelerated principal payments to achieve specified overcollateralization levels [4] - Consumer Portfolio Services, Inc. specializes in providing indirect automobile financing to individuals with past credit issues or limited credit histories, primarily funding through securitization markets [6]