$716.88M Securitization Marks CPS’s Largest Deal in Company History
Event summary
- $716.88M senior subordinate asset-backed securitization closed on July 22, 2026.
- Largest deal in CPS’s history, backed by $734.51M in auto receivables.
- 43rd consecutive triple-A rated senior class of notes from at least two agencies.
- Five classes of notes issued with weighted average coupon of ~5.90%.
- Initial credit enhancement includes 1.00% cash deposit and 2.40% overcollateralization.
The big picture
CPS’s record-breaking securitization underscores the resilience of subprime auto lending as a structured finance asset class. The deal’s scale and consistent high ratings reflect both CPS’s servicing expertise and investor demand for yield in a low-rate environment. However, rising delinquencies in subprime auto loans pose a long-term risk to the sustainability of such transactions.
What we're watching
- Credit Performance
- How the historical performance of similar receivables will impact future ratings and investor confidence.
- Market Demand
- Whether qualified institutional buyers maintain appetite for subprime auto-backed securities amid economic uncertainty.
- Execution Risk
- The pace at which CPS can sustain consecutive triple-A ratings in a volatile credit environment.