Pagaya Issues AAA-rated $600 Million Personal Loan ABS Transaction
Pagaya Issues AAA-rated $600 Million Personal Loan ABS Transaction
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Key Terms
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 creditworthiness assigned to a borrower or debt instrument, meaning independent evaluators judge its ability to meet obligations as extremely strong. For investors this signals very low default risk and greater safety—similar to choosing a well-built, reliable car—but it usually comes with lower interest returns compared with riskier, lower-rated options.
securitizationfinancial
Securitization is when a bank or company takes a bunch of loans or assets, like mortgages or car loans, and bundles them together into a single package. They then sell pieces of this package to investors, who receive regular payments from the borrowers. This process helps the original lender get money quickly and spreads the risk among many investors.
institutional investorsfinancial
Institutional investors are large organizations, like pension funds, insurance companies, and mutual funds, that invest huge amounts of money on behalf of many people. Their decisions can influence the economy because they buy and sell big chunks of stocks, bonds, or other assets. They matter because their actions can affect market prices and trends.
ai-driven credit underwritingtechnical
AI-driven credit underwriting uses computer models that learn from large amounts of data to evaluate whether a borrower is likely to repay a loan, acting like a fast, data-savvy credit officer that considers many signals at once. It matters to investors because it can speed loan approvals, reduce costs and expand lending to new customers — which can boost revenue — but also introduces model risk, regulatory scrutiny and potential unexpected losses if the system misjudges credit quality.
Consistent market demand led to the successful onboarding of four new institutional investors to the PAID platform, further diversifying the company’s funding base.
Since inception, Pagaya has generated $28.5 billion in ABS for personal loans to support its growing Partner Network.
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 a $600 million AAA rated, personal loan ABS transaction (PAID 2026-2).
A total of 27 unique investors participated in the personal loan securitization, with the majority returning from prior transactions, and despite recent market volatility 4 new investors who have not previously participated in Pagaya’s PAID platform. Since 2018, Pagaya has issued more than $36 billion across 86 ABS transactions with over 165 institutional investors, supporting originations across personal loan, auto, and POS programs.
“The successful closing of PAID 2026-2 highlights the consistency and reliability of the Pagaya platform,” said Sahil Chandiramani, Head of Capital Markets at Pagaya Technologies LTD. “Welcoming new institutional partners alongside our deeply committed returning investors demonstrates the continued expansion of our ecosystem and the market's confidence in our AI-driven credit underwriting.”
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.
