Consumer Portfolio Services securitizes $50M residuals

Qualified buyers take $50M in notes tied to CPS residual interests from four 2025 auto loan securitizations, paying 8.75% and backed by 80% of an affiliate.

Published on Mar. 4, 2026

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Consumer Portfolio Services, Inc. (CPS), an independent specialty finance company that provides indirect automobile financing, has announced the closing of a $50.0 million securitization of residual interests from previously issued securitizations. In the transaction, qualified institutional buyers purchased $50.0 million of asset-backed notes secured by an 80% interest in a CPS majority owned affiliate (MOA) that owns the residual interests in four CPS securitizations issued from January 2025 through October 2025. The coupon on the notes is 8.75%.

Why it matters

This securitization deal allows CPS to monetize the residual interests from its previous auto loan securitizations, providing the company with additional capital to continue its indirect automobile financing business. The transaction also demonstrates the ongoing investor demand for asset-backed securities tied to consumer credit, even in a challenging economic environment.

The details

The MOA interest includes 80% of the amounts on deposit in the underlying spread accounts for each related securitization and 80% of the over-collateralization of each related securitization, which is the difference between the outstanding principal balance of the related receivables less the outstanding principal balance of the notes associated with the securitization. On each monthly payment date, the notes will be paid interest at the coupon rate and, if necessary, a principal payment to maintain a specified minimum collateral ratio.

  • The securitization transaction closed on March 4, 2026.
  • The four CPS securitizations that are part of the residual interest securitization were issued from January 2025 through October 2025.

The players

Consumer Portfolio Services, Inc. (CPS)

An independent specialty finance company that provides indirect automobile financing to individuals with past credit problems or limited credit histories.

Majority Owned Affiliate (MOA)

A CPS affiliate that owns 80% of the residual interests in the four CPS securitizations that are part of this $50 million securitization deal.

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What they’re saying

“This securitization deal allows CPS to monetize the residual interests from its previous auto loan securitizations, providing the company with additional capital to continue its indirect automobile financing business.”

— Danny Bharwani, EVP/ Chief Financial Officer (CPS Press Release)

The takeaway

CPS's ability to securitize the residual interests from its previous auto loan securitizations demonstrates the ongoing investor demand for asset-backed securities tied to consumer credit, even in challenging economic times. This transaction provides CPS with additional capital to support its core indirect automobile financing business.