CPS completes $345.6 million auto receivables securitization

Consumer Portfolio Services Inc. (NASDAQ: CPSS) completed a $345.61 million asset-backed securitization backed by automobile receivables on January 27, 2026, according to a company statement.

The transaction marks CPS's 58th senior subordinate securitization since 2011 and the 41st consecutive securitization to receive AAA ratings from at least two rating agencies on the senior class of notes. The notes are secured by $352.66 million in automobile receivables originated by CPS.

CPS Auto Receivables Trust 2026-A issued five classes of notes to qualified institutional buyers. The Class A notes totaling $155.52 million carry a 4.19% interest rate and received AAA ratings from both Standard & Poor's and DBRS Morningstar. Class B notes of $47.79 million have a 4.43% rate with AA ratings, while Class C notes of $58.36 million carry a 4.63% rate with A ratings.

Class D notes totaling $38.44 million have a 4.98% interest rate and BBB ratings from both agencies. Class E notes of $45.50 million carry a 6.66% rate, with no rating from S&P and a BB rating from DBRS. The weighted average coupon on all notes is approximately 5.18%.

The transaction includes initial credit enhancement with a cash deposit equal to 1% of the original receivable pool balance and 2% overcollateralization. The structure requires accelerated principal payments to reach overcollateralization of either 7.30% of the original pool balance or 18% of the outstanding pool balance, whichever is lower.

The securities were offered privately and not registered under the Securities Act of 1933. CPS provides indirect automobile financing to individuals with past credit problems through retail installment contracts purchased from franchised dealerships.

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