Consumer Portfolio Services (CPS) has issued a $65m securitization of residual interests from it’s existing securitization (subprime auto loan deal ABS) deals. CPS is based in Las Vegas.
The deal was bought by a single institution as a privately placed deal. The deal was structured as asset-backed notes.
The notes are backed by an 80% interest in an entity (“Residual Interest Owner”) that owns the residual interests in five CPS ABS deals issued between October 2023 and September 2024.
The Residual Interest Owner that backs the deal in turn owns 80% of the deposits in the underlying spread accounts for the CPS deals, as well as 80% of the over-collateralization of each of the five CPS deals.
This residual interest securitization deal pays interest monthly. It also has a minimum colleralization ratio mechanism – where the notes will pay down principal if needed to maintain the minimum collateralization ratio.
CPS has issued residual interest securitization deals every years. CPS did a residual interest securitization deal in June 2021. This was a $50m deal – structured as one tranche with a coupon of 7.86%. That deal was issued by CPS Auto Securitization Trust 2021-1.