CPS Announces $716.88 Million Senior Subordinate Asset-Backed Securitization
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.
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Rhea-AI Summary
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.
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.
Details
News Market Reaction – CPSS
On Jul 22, the day this news came out, CPSS closed 1.76% above the previous close.
Data tracked by StockTitan Argus for the Jul 22 session.
Key Figures
- Asset-backed notes
- $716.88 million
- 2026-C private securitization
- Automobile receivables
- $734.51 million
- Receivables securing the sold notes
- Securitization count
- 60th
- Since the beginning of 2011
- Consecutive triple-A securitizations
- 43rd
- Senior class rated triple-A by at least two agencies
- Weighted average coupon
- 5.90%
- Notes issued in the 2026-C transaction
- Cash deposit credit enhancement
- 1.00%
- Of the original receivable pool balance
- Initial overcollateralization
- 2.40%
- Of the original receivable pool balance
- Required overcollateralization
- 7.70% or 19.10%
- Lesser of original or then-outstanding pool balance percentages
Historical Context
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Capacity increased from $335 million to $508 million with borrowing through July 17, 2028.
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Revenue, net income and portfolio balance increased; delinquencies fell while net charge-offs rose.
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$514.07 million securitization became the company’s largest and received Aaa/AAA senior ratings.
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Capital One facility capacity rose from $167.5 million to $390 million, expanding available funding.
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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.
Key Terms
asset-backed securitization financial
qualified institutional buyers financial
credit enhancement financial
overcollateralization financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
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
| Note Class | Amount (in millions) | Interest Rate | Average Life (years) | Price | S&P’s Rating | DBRS Rating | |
| A | 0.65 | AAA | AAA | ||||
| B | 1.72 | AA | AA | ||||
| C | 2.39 | A | A | ||||
| D | 3.21 | BBB | BBB | ||||
| E | 4.03 | NR | BB | ||||
The weighted average coupon on the notes is approximately
The 2026-C transaction has initial credit enhancement consisting of a cash deposit equal to
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
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