Consumer Portfolio Services, Inc. (CPSS) closed its 59th senior subordinate securitization on April 22, 2026, raising $514.07 million in senior notes backed by $526.17 million of automobile receivables. The transaction, completed on the same day, marks the largest securitization ever undertaken by the company.
The notes were issued by CPS Auto Receivables Trust 2026‑B, structured into five tranches, and received top ratings of Aaa from Moody’s and AAA from DBRS Morningstar on the senior class. The weighted average coupon of 5.51% reflects favorable market conditions and CPSS’s strong credit profile.
Credit enhancement includes a 1.00 % cash deposit and 2.30 % over‑collateralization at closing, with accelerated payment provisions that maintain at least 7.70 % over‑collateralization of the original pool or 19.20 % of the outstanding balance, ensuring robust protection for investors.
The deal expands CPSS’s liquidity base, enabling the company to fund additional auto‑loan purchases and servicing operations. It also marks the first time CPSS has issued more than $500 million of notes in a single securitization, underscoring its deep relationships with institutional investors and its ability to scale its financing strategy.
CPSS’s 2025 financial results support the transaction’s significance: revenue rose 10.4 % to $434.5 million, and interest income grew 16 %. CEO Charles E. Bradley noted in the Q4 2025 earnings call that the firm finished 2025 with the highest recorded revenue in company history and is well positioned going into 2026, a sentiment that aligns with the confidence reflected in the new securitization.
Historically, CPSS has completed 58 prior senior subordinate securitizations, with the 42nd consecutive transaction receiving a triple‑A rating. Earlier this year, the company closed a $345.61 million securitization in January and a $418.33 million deal in July, both of which were also highly rated. The current $514 million issuance represents a 48 % increase over the July 2025 transaction and a 49 % increase over the January 2026 deal, highlighting the company’s accelerating scale.
By securing a large, highly rated tranche, CPSS reinforces its position as a leading specialty finance provider for consumers with limited credit histories, ensuring continued access to capital markets and supporting its growth strategy in the automotive financing sector.
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