Consumer Portfolio Services (Nasdaq: CPSS) closed its third term securitization of 2026 on July 22, 2026, a $716.88 million senior subordinate asset-backed notes offering secured by $734.51 million in automobile receivables. This is the largest securitization in the company’s history and its 60th senior subordinate deal since 2011.
The notes, issued by CPS Auto Receivables Trust 2026-C, comprise five classes (A–E) with coupons from 4.52% to 7.65% and a weighted average coupon of approximately 5.90%. Senior notes received up to triple “A” ratings from Standard & Poor’s and DBRS Morningstar. Initial credit enhancement includes a 1.00% cash deposit and 2.40% overcollateralization, with structural provisions to increase overcollateralization to the lesser of 7.70% of the original pool balance or 19.10% of the then outstanding pool balance. According to Consumer Portfolio Services, the securities were sold in a private offering to qualified institutional buyers.
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Positive
Largest securitization to date: $716.88 million of notes backed by $734.51 million receivables
60th senior subordinate securitization since 2011, supporting ongoing funding access
43rd consecutive deal with triple “A” ratings on senior class from at least two agencies
Initial credit enhancement: 1.00% cash deposit plus 2.40% overcollateralization, with targets up to 7.70%/19.10%
Negative
None.
News Market Reaction – CPSS
+1.76%
+1.76%Session close to close
In the Jul 22 session, CPSS gained 1.76%, reflecting a mild positive market reaction.
CPSS recorded a 0.87% gain after its July 9 credit-facility announcement, while the April securitiza...
Analysis
CPSS recorded a 0.87% gain after its July 9 credit-facility announcement, while the April securitization was followed by -0.53%. That history frames funding access as recurring context; credit performance remains the key risk to monitor.
Key Figures
Asset-backed notes:$716.88 millionAutomobile receivables:$734.51 millionSecuritization count:60th+5 more
Revenue increased 10.4% year over year, while operating expenses and annualized net charge-offs also rose.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Pattern Detected
Funding-related announcements were generally followed by positive or flat reactions, while one prior securitization and the full-year earnings release were followed by declines.
"CPS Announces $716.88 Million Senior Subordinate Asset-Backed Securitization"
Asset-backed securitization is a process where a financial institution pools together a group of assets—such as loans or receivables—and converts them into a security that can be sold to investors. This allows the original lender to raise funds quickly, while investors gain access to a stream of payments derived from the underlying assets. It’s similar to bundling multiple small income sources into a single investment, providing both liquidity for lenders and investment opportunities for others.
qualified institutional buyersfinancial
"qualified institutional buyers purchased $716.88 million of asset-backed notes"
Qualified institutional buyers are large organizations, like big investment firms or banks, that are allowed to buy certain types of investment opportunities not available to everyday investors. Their size and experience matter because it ensures they understand and can handle complex financial deals, making markets more efficient and secure.
credit enhancementfinancial
"has initial credit enhancement consisting of a cash deposit"
Credit enhancement is a set of tools or arrangements—such as guarantees, insurance, reserve funds, or priority of payments—designed to reduce the chance lenders or bondholders lose money if a borrower defaults. Investors care because these measures make a debt issue look safer and can raise its credit rating; like a co-signer or loan insurance, credit enhancement typically lowers the yield an issuer must pay but also reduces the investor’s risk.
overcollateralizationfinancial
"and overcollateralization of 2.40%"
Overcollateralization is the practice of pledging assets worth more than the amount of debt they secure, creating a built-in safety cushion for lenders or bond investors if the underlying assets lose value. Think of it like leaving a larger-than-required security deposit: it lowers the chance investors suffer losses, can improve credit ratings, and usually means lower yields or stricter terms for borrowers because the investment is safer.
LAS VEGAS, Nevada, July 22, 2026 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”) announced the closing of its third term securitization in 2026 on Wednesday July 22, 2026. This is the largest securitization in the history of the company. The transaction is CPS's 60th senior subordinate securitization since the beginning of 2011 and the 43rd consecutive securitization to receive a triple “A” rating from at least two rating agencies on the senior class of notes.
In the transaction, qualified institutional buyers purchased $716.88 million of asset-backed notes secured by $734.51 million in automobile receivables originated by CPS. The sold notes, issued by CPS Auto Receivables Trust 2026-C, consist of five classes. Ratings of the notes were provided by Standard & Poor’s and DBRS Morningstar, and were based on the structure of the transaction, the historical performance of similar receivables and CPS’s experience as a servicer.
Note Class
Amount (in millions)
Interest Rate
Average Life (years)
Price
S&P’s Rating
DBRS Rating
A
$317.300
4.52%
0.65
99.99748%
AAA
AAA
B
$99.900
4.84%
1.72
99.99220%
AA
AA
C
$113.110
5.05%
2.39
99.98790%
A
A
D
$81.530
5.72%
3.21
99.97623%
BBB
BBB
E
$105.040
7.65%
4.03
99.98014%
NR
BB
The weighted average coupon on the notes is approximately 5.90%.
The 2026-C transaction has initial credit enhancement consisting of a cash deposit equal to 1.00% of the original receivable pool balance and overcollateralization of 2.40%.The transaction agreements require accelerated payment of principal on the notes to reach overcollateralization of the lesser of 7.70% of the original receivable pool balance, or 19.10% of the then outstanding pool balance.
The transaction was a private offering of securities, not registered under the Securities Act of 1933, or any state securities law. All such securities having been sold, this announcement of their sale appears as a matter of record only.
About Consumer Portfolio Services, Inc.
Consumer Portfolio Services, Inc. is an independent specialty finance company that provides indirect automobile financing to individuals with past credit problems or limited credit histories. We purchase retail installment sales contracts primarily from franchised automobile dealerships secured by late model used vehicles and, to a lesser extent, new vehicles. We fund these contract purchases on a long-term basis primarily through the securitization markets and service the contracts over their lives.
Investor Relations Contact
Danny Bharwani, Chief Financial Officer 949-753-6811
FAQ
What did Consumer Portfolio Services (NASDAQ: CPSS) announce on July 22, 2026?
Consumer Portfolio Services announced the closing of its third 2026 term securitization, a $716.88 million auto loan asset-backed transaction. According to Consumer Portfolio Services, this 2026-C deal is the largest securitization in the company’s history and its 60th senior subordinate transaction since 2011.
How large is the CPS Auto Receivables Trust 2026-C securitization and what backs the CPSS notes?
The CPS Auto Receivables Trust 2026-C securitization totals $716.88 million in asset-backed notes. According to Consumer Portfolio Services, these notes are secured by $734.51 million of automobile receivables originated by the company, primarily retail installment sales contracts on late-model used and some new vehicles.
What credit ratings did the CPS (CPSS) 2026-C securitization notes receive?
The CPS 2026-C notes received ratings from Standard & Poor’s and DBRS Morningstar, with the senior class rated triple “A”. According to Consumer Portfolio Services, individual tranches range from AAA/AAA on Class A down to BBB/BBB and BB/NR on the subordinated classes.
What is the weighted average interest rate on Consumer Portfolio Services’ 2026-C securitization notes?
The weighted average coupon on the CPS 2026-C securitization notes is approximately 5.90%. According to Consumer Portfolio Services, individual tranches carry fixed interest rates from 4.52% on Class A to 7.65% on the most subordinated Class E notes.
How is credit enhancement structured in the CPS Auto Receivables Trust 2026-C (CPSS) deal?
Credit enhancement for the CPS 2026-C securitization includes a 1.00% cash deposit and 2.40% overcollateralization. According to Consumer Portfolio Services, transaction agreements accelerate principal payments until overcollateralization reaches the lesser of 7.70% of original pool balance or 19.10% of the then outstanding pool balance.
Is the CPS (NASDAQ: CPSS) 2026-C securitization available to retail investors?
No, the CPS 2026-C securitization was a private offering not registered under the Securities Act of 1933. According to Consumer Portfolio Services, all securities were sold to qualified institutional buyers, and the announcement appears solely as a matter of record after completion.
How many securitizations has Consumer Portfolio Services completed and how consistent are CPSS ratings?
Consumer Portfolio Services has completed 60 senior subordinate securitizations since 2011, including 2026-C. According to Consumer Portfolio Services, 43 consecutive securitizations have obtained triple “A” ratings on the senior class of notes from at least two rating agencies.
