Consumer Portfolio Services, Inc. (Nasdaq: CPSS) announced the closing of a $767.85 million senior subordinate asset-backed securitization on October 21, 2026. The transaction, CPS Auto Receivables Trust 2026-D, is the company's 61st securitization since the beginning of 2011 and its 111th overall.
The securitization involved the sale of approximately $797.36 million of subprime automotive receivables. Qualified institutional buyers purchased $767.85 million of asset-backed notes issued by the Trust. The notes are secured by the receivables and consist of five classes with varying interest rates and principal amounts:
- Class A: $356.34 million at 5.14%
- Class B: $111.47 million at 5.59%
- Class C: $118.09 million at 6.01%
- Class D: $71.12 million at 6.55%
- Class E: $110.83 million at 8.56%
The weighted average coupon on the notes is approximately 6.68%. The transaction received a triple-A rating on the senior class of notes from Moody's and DBRS Morningstar. Credit enhancement for the Notes consists of a cash deposit equal to 1.00% of the original receivable pool balance and overcollateralization of 3.70%.
Under the terms of the agreements, CPS will act as the servicer of the receivables. The Trust is obligated to pay principal and interest on the Notes on a monthly basis. The transaction is a private offering of securities not registered under the Securities Act of 1933.
