Consumer Portfolio Services closed its third securitization of 2025, issuing $418.33 million in asset-backed notes with strong ratings.
Quiver AI Summary
Consumer Portfolio Services, Inc. (CPS) announced the successful closing of its third term securitization in 2025, marking its 56th senior subordinate securitization since 2011. This transaction, involving $418.33 million in asset-backed notes secured by $433.50 million in automobile receivables, continued CPS's streak of consecutive securitizations receiving triple “A” ratings from multiple agencies. The notes were sold to qualified institutional buyers through CPS Auto Receivables Trust 2025-C and included five classes with varying interest rates and average lives. The overall weighted average coupon on the notes is approximately 5.43%. This private offering was not registered under the Securities Act, and the company focuses on providing financing to individuals with past credit issues or limited credit histories through purchasing retail installment sales contracts.
Potential Positives
- The closing of the third term securitization in 2025 demonstrates CPS's continued ability to successfully execute financing transactions, reinforcing investor confidence.
- This marks CPS's 39th consecutive securitization to receive a triple “A” rating from at least two rating agencies, highlighting the company's strong credit quality and risk management.
- The transaction involved $418.33 million in asset-backed notes, indicating robust demand from qualified institutional buyers and the underlying strength of CPS's automobile receivables.
Potential Negatives
- The press release indicates that the notes issued were not registered under the Securities Act of 1933, which can limit the liquidity and marketability of the securities, potentially affecting investor confidence.
- Although the securitization received multiple triple “A” ratings, the presence of a BB rating in the class D notes suggests significant risk associated with part of the securitized assets.
- The company relies on the securitization market for funding, which may pose risks if market conditions change or if there is decreased demand for asset-backed securities in the future.
FAQ
What is Consumer Portfolio Services, Inc. known for?
Consumer Portfolio Services, Inc. specializes in indirect automobile financing for individuals with credit challenges.
When did CPS announce its third term securitization in 2025?
CPS announced its third term securitization on July 28, 2025.
What was the total amount of asset-backed notes sold in the recent securitization?
The total amount of asset-backed notes sold was $418.33 million.
How many securitizations has CPS completed since 2011?
CPS has completed 56 senior subordinate securitizations since the beginning of 2011.
What ratings did the senior class of notes receive?
The senior class of notes received a triple “A” rating from at least two rating agencies.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$CPSS Insider Trading Activity
$CPSS insiders have traded $CPSS stock on the open market 13 times in the past 6 months. Of those trades, 0 have been purchases and 13 have been sales.
Here’s a breakdown of recent trading of $CPSS stock by insiders over the last 6 months:
- GREG WASHER has made 0 purchases and 7 sales selling 25,689 shares for an estimated $251,080.
- WILLIAM B ROBERTS has made 0 purchases and 5 sales selling 14,376 shares for an estimated $134,663.
- APRIL CRISP (Sr. Vice President) sold 100 shares for an estimated $975
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$CPSS Hedge Fund Activity
We have seen 19 institutional investors add shares of $CPSS stock to their portfolio, and 23 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- ALLIANZ ASSET MANAGEMENT GMBH removed 173,834 shares (-52.1%) from their portfolio in Q1 2025, for an estimated $1,507,140
- ROYAL BANK OF CANADA removed 28,949 shares (-15.8%) from their portfolio in Q1 2025, for an estimated $250,987
- DIMENSIONAL FUND ADVISORS LP removed 14,035 shares (-0.9%) from their portfolio in Q1 2025, for an estimated $121,683
- BLACKROCK, INC. added 10,756 shares (+1.7%) to their portfolio in Q1 2025, for an estimated $93,254
- CITADEL ADVISORS LLC added 10,712 shares (+143.5%) to their portfolio in Q1 2025, for an estimated $92,873
- VOYA INVESTMENT MANAGEMENT LLC added 10,037 shares (+67.3%) to their portfolio in Q1 2025, for an estimated $87,020
- JPMORGAN CHASE & CO removed 8,889 shares (-30.5%) from their portfolio in Q1 2025, for an estimated $77,067
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
LAS VEGAS, Nevada, July 28, 2025 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”) announced the closing of its third term securitization in 2025 on Monday July 28, 2025. The transaction is CPS's 56th senior subordinate securitization since the beginning of 2011 and the 39th consecutive securitization to receive a triple “A” rating from at least two rating agencies on the senior class of notes.
In the transaction, qualified institutional buyers purchased $418.33 million of asset-backed notes secured by $433.50 million in automobile receivables originated by CPS. The sold notes, issued by CPS Auto Receivables Trust 2025-C, consist of five classes. Ratings of the notes were provided by Standard & Poor’s and DBRS Morningstar, and were based on the structure of the transaction, the historical performance of similar receivables and CPS’s experience as a servicer.
| Note Class |
Amount
(in millions) |
Interest Rate |
Average
Life (years) |
Price |
S&P’s
Rating |
DBRS
Rating |
|
| A | $184.450 | 4.71% | 0.63 | 99.99986% | AAA | AAA | |
| B | $57.440 | 4.71% | 1.66 | 99.99155% | AA | AA | |
| C | $72.390 | 4.91% | 2.35 | 99.98829% | A | A | |
| D | $47.690 | 5.28% | 3.21 | 99.97840% | BBB | BBB | |
| E | $56.360 | 6.59% | 4.02 | 99.97684% | NR | BB | |
The weighted average coupon on the notes is approximately 5.43%.
The 2025-C transaction has initial credit enhancement consisting of a cash deposit equal to 1.00% of the original receivable pool balance and overcollateralization of 3.50%. The transaction agreements require accelerated payment of principal on the notes to reach overcollateralization of the lesser of 8.00% of the original receivable pool balance, or 21.00% of the then outstanding pool balance.
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
