Asset-backed securitization is a process where a financial institution pools together a group of assets—such as loans or receivables—and converts them into a security that can be sold to investors. This allows the original lender to raise funds quickly, while investors gain access to a stream of payments derived from the underlying assets. It’s similar to bundling multiple small income sources into a single investment, providing both liquidity for lenders and investment opportunities for others.
absfinancial
Asset-backed securities (ABS) are financial instruments that bundle many individual loans or receivables—such as car loans, credit-card balances or equipment leases—and sell slices of the bundle to investors. Like slicing a loaf of bread into pieces to share, ABS let investors buy a portion of the cash flows from many borrowers, so their credit quality, payment speed and default rates directly affect the income, risk and liquidity investors receive.
aaa-ratedfinancial
AAA-rated describes the highest possible credit rating given to a borrower or debt instrument, signifying an extremely strong ability to meet interest and principal payments. For investors it signals very low risk of default, meaning these securities usually offer lower yields but provide stability and preserve capital, much like choosing a car with a top safety score when you want the least chance of trouble.
revolver credit facilityfinancial
A revolver credit facility is a bank line of credit a company can draw from, repay, and draw again as needed—similar to a business credit card for short-term needs like payroll, inventory, or unexpected costs. It matters to investors because it shows how easily a company can cover day‑to‑day cash needs and handle shocks; the size, cost, and lender conditions affect financial flexibility and default risk.
senior notesfinancial
Senior notes are a type of loan that a company borrows from investors, promising to pay it back with interest. They are called "senior" because in case the company faces financial trouble, these lenders are paid back before others. This makes senior notes safer for investors compared to other types of loans or bonds.
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RPM-2026-2 is the largest Auto ABS deal in Pagaya’s history
More than $3.5 billion of capital raised year-to-date to fund all asset classes in Pagaya’s ABS program
NEW YORK--(BUSINESS WIRE)--
Pagaya Technologies LTD. (NASDAQ: PGY) ("Pagaya" or the “Company”), a global technology company delivering AI-driven product solutions for the financial ecosystem, today announced the closing of RPM-2026-2, a $500 million auto asset-backed securitization (ABS). Pagaya’s RPM shelf, now in its seventh year, continues to be a trusted source of high-quality collateral serviced by the country’s top auto lenders.
“The successful execution of RPM-2026-2 is a testament to the trust we’ve built within the investment community over the last seven years,” said Sahil Chandiramani, Head of Capital Markets at Pagaya. “As we shift toward higher quality credit and application flow via our network of lenders, we are seeing increasing demand in our auto program from top-tier institutional partners, reflecting enduring confidence in our ability to deliver consistent execution and performance across our platform.”
Sixteen unique investors participated in this transaction, the majority of whom were repeat investors. Since 2018, Pagaya has raised more than $37 billion across 88 ABS transactions to fund loan originations across multiple products, including personal loan, point of sale, and auto.
About Pagaya Technologies
Pagaya (NASDAQ: PGY) is a global technology company making life-changing financial products and services available to more people nationwide, as it reshapes the financial services ecosystem. By using machine learning, a vast data network and an AI-driven approach, Pagaya provides comprehensive consumer credit and residential real estate products for its partners, their customers, and investors. Its proprietary API and capital solutions integrate into its network of partners to deliver seamless user experiences and greater access to the mainstream economy. Pagaya has offices in New York and Tel Aviv. For more information, visit pagaya.com.
