CPS closed a $50 million securitization of residual interests from prior issuances, offering asset-backed notes with an 8.75% coupon.
Quiver AI Summary
Consumer Portfolio Services, Inc. has announced the successful closing of a $50 million securitization deal involving residual interests from past securitizations. Qualified institutional buyers acquired asset-backed notes that are secured by an 80% interest in a majority-owned affiliate of CPS, which holds residual interests from four securitizations completed between January and October 2025. The notes carry an 8.75% coupon rate and include significant collateral from the underlying spread accounts and over-collateralization of the related securitizations. Monthly payments will be made to note holders based on the coupon rate, with potential principal payments to safeguard a minimum collateral ratio. This private offering is unregistered under current securities laws, serving as a record of the securities sold. CPS specializes in providing indirect auto financing to individuals with challenging credit histories.
Potential Positives
- Successful closing of a $50.0 million securitization highlights the company's ability to leverage residual interests effectively.
- The interest rate of 8.75% on the asset-backed notes indicates strong demand from qualified institutional buyers for CPS's financial instruments.
- This transaction reinforces CPS's financial stability by securing funding through a structured and strategic approach to funding operations.
Potential Negatives
- The press release indicates a reliance on securitization to finance operations, which may point to potential volatility and risk if market conditions change.
- The coupon rate of 8.75% on the asset-backed notes suggests a higher cost of capital, which could impact profitability.
- The transaction's private nature and lack of registration under the Securities Act of 1933 may limit investor transparency and raise concerns about regulatory compliance.
FAQ
What was the amount of the recent CPS securitization deal?
Consumer Portfolio Services announced the closing of a $50.0 million securitization deal for residual interests.
Who were the buyers of the CPS asset-backed notes?
The buyers of the $50.0 million asset-backed notes were qualified institutional buyers.
What is the coupon rate on the newly issued notes?
The coupon rate on the newly issued notes is 8.75%.
How does CPS typically fund its contract purchases?
CPS primarily funds its contract purchases through the securitization markets.
What type of financing does Consumer Portfolio Services provide?
Consumer Portfolio Services provides indirect automobile financing to individuals with past credit problems or limited credit histories.
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 2 times in the past 6 months. Of those trades, 0 have been purchases and 2 have been sales.
Here’s a breakdown of recent trading of $CPSS stock by insiders over the last 6 months:
- WILLIAM B ROBERTS sold 100,000 shares for an estimated $869,000
- NOEL JACKSON (Sr. Vice President) sold 9,369 shares for an estimated $79,578
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$CPSS Revenue
$CPSS had revenues of $49.3M in Q3 2025. This is a decrease of -2.38% from the same period in the prior year.
You can track CPSS financials on Quiver Quantitative's CPSS stock page.
$CPSS Hedge Fund Activity
We have seen 14 institutional investors add shares of $CPSS stock to their portfolio, and 29 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- FISHER ASSET MANAGEMENT, LLC removed 102,377 shares (-100.0%) from their portfolio in Q3 2025, for an estimated $772,946
- RUSSELL INVESTMENTS GROUP, LTD. added 96,224 shares (+6347.2%) to their portfolio in Q4 2025, for an estimated $897,769
- BANK OF NEW YORK MELLON CORP removed 75,606 shares (-78.3%) from their portfolio in Q4 2025, for an estimated $705,403
- GOLDMAN SACHS GROUP INC removed 26,608 shares (-53.2%) from their portfolio in Q4 2025, for an estimated $248,252
- EMPOWER ADVISORY GROUP, LLC removed 23,675 shares (-27.5%) from their portfolio in Q4 2025, for an estimated $220,887
- CITADEL ADVISORS LLC removed 21,562 shares (-100.0%) from their portfolio in Q4 2025, for an estimated $201,173
- DIMENSIONAL FUND ADVISORS LP removed 16,500 shares (-1.0%) from their portfolio in Q4 2025, for an estimated $153,945
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
LAS VEGAS, Nevada, March 04, 2026 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”) today 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%.
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 transaction was a private offering of securities, not registered under the Securities Act of 1933, or any state securities law. All of 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, EVP/ Chief Financial Officer
949-753-6811
