CPS Announces $767.85 Million Senior Subordinate Asset-Backed Securitization
The financing carries five classes of notes, with interest rates ranging from 5.14% to 8.56%.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Consumer Portfolio Services (Nasdaq: CPSS) closed its fourth term securitization of 2026, selling $767.85 million of asset-backed notes to institutional buyers.
The five classes issued by CPS Auto Receivables Trust 2026-D are secured by $797.36 million in automobile receivables originated by CPS. Class interest rates range from 5.14% to 8.56%. The senior class received Aaa from Moody’s and AAA from DBRS Morningstar, marking CPS’s 44th consecutive securitization with top ratings from at least two agencies on its senior notes. Initial credit enhancement includes a cash deposit equal to 1.00% of the original receivable pool balance and 3.70% overcollateralization, meaning collateral exceeds the notes outstanding.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate point$767.85 million of asset-backed notes sold completes CPS’s fourth term securitization of 2026. 3.9× market cap
- Minor point44th consecutive securitization received triple-A senior-note ratings from at least two rating agencies.
Negative
- Moderate pointFive note classes carry interest obligations at rates ranging from 5.14% to 8.56%.
- Minor pointInitial credit enhancement requires a 1.00% cash deposit and 3.70% overcollateralization.
- Minor point. Forward-looking: it has not happened yet and may not happen.Accelerated principal payments must build overcollateralization to the lesser of 8.00% of the original pool or 19.40% of the outstanding pool.
News Explained
Although the transaction closed with initial overcollateralization of
AI-generated analysis. How Rhea-AI works. Not financial advice.
LAS VEGAS, Nevada, Oct. 21, 2026 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”) announced the closing of its fourth term securitization in 2026 on Wednesday October 21, 2026. The transaction is CPS's 61st senior subordinate securitization since the beginning of 2011, and the 44th consecutive securitization to receive a triple “A” rating from at least two rating agencies on the senior class of notes. It also marks the 111th securitization in the history of the Company.
In the transaction, qualified institutional buyers purchased
| Note Class | Amount (in millions) | Interest Rate | Average Life (years) | Price | Moody’s Rating | DBRS Rating |
| A | 0.71 | Aaa | AAA | |||
| B | 1.84 | Aaa | AA | |||
| C | 2.54 | Aa3 | A | |||
| D | 3.31 | Baa2 | BBB | |||
| E | 4.05 | NR | BB |
The weighted average coupon on the notes is approximately
The 2026-D 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
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much did Consumer Portfolio Services raise in its 2026-D securitization?
Qualified institutional buyers purchased $767.85 million of asset-backed notes issued by CPS Auto Receivables Trust 2026-D. The notes comprise five classes and are secured by $797.36 million in automobile receivables originated by CPS.
What ratings did CPSS’s 2026-D senior notes receive?
The Class A notes received Aaa from Moody’s and AAA from DBRS Morningstar. This was CPS’s 44th consecutive securitization to receive triple-A ratings from at least two rating agencies on the senior class.
What additional collateral protection does CPS’s 2026-D securitization require?
The transaction requires accelerated principal payments to reach overcollateralization equal to the lesser of 8.00% of the original receivable pool balance or 19.40% of the then outstanding pool balance. This builds collateral coverage above the initial 3.70% overcollateralization.