Pagaya Surpasses $500MM in Consumer ABS Issuance

Pagaya announces its first $200MM deal in PAID 2019-3, their largest to date

Pagaya, a global financial technology company using artificial intelligence (AI) to reshape asset management, today announced the closing of a consumer credit asset-backed security (ABS) at $200 million. The ABS, like the three before it, will be actively managed by Pagaya’s AI.

This transaction is Pagaya’s largest to-date and the fourth in seven months, bringing the firm’s total ABS issuance to $515 million. The new securitization also places Pagaya as a top ten issuer in 2019, according to data from Finsight.

This issuance includes a mezzanine tranche which is a strong signal of increased investor faith in Pagaya and the company’s underwriting technology.

“It’s exciting to see this kind of innovation play so well in the ABS space,” said Gal Krubiner, Pagaya’s CEO and co-founder. “We’re seeing huge demand from institutions looking for better returns in this low-rate climate while not overexposing themselves. Our technology opens up a huge world of opportunity in an otherwise limited space.” 


Nothing contained in this communication constitutes tax, legal, or investment advice.  Investors must consult their tax advisor or legal counsel for advice and information concerning their particular situation. This article contains certain statements that may include “forward-looking statements.” All statements, other than statements of historical fact, included herein are “forward-looking statements.” Although Pagaya believes that the expectations reflected in these forward- looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Actual events could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. You should not place undue reliance on these forward-looking statements. This article reflects our views and opinions as of the date herein, which are subject to change at any time based on market and other conditions. We disclaim any responsibility to update these views. These views should not be relied on as investment advice or an indication of investment intention. Discussion or analysis of any specific company-related news or investment sectors are meant primarily as a result of recent newsworthy events surrounding those companies or by way of providing updates on certain sectors of the market. Pagaya does stand to beneficially profit from the performance of consumer loans it owns or acquires.  Read the full disclaimer.