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.”