Pagaya Achieves Inaugural AAA Fitch Rating on $368 Million Personal Loan Resecuritization

Key Terms

resecuritization financial

Resecuritization is the process of taking already pooled and packaged loans or bonds and repackaging portions of that pool into a new set of securities for sale to investors. Think of it as taking a pre-made box of assorted cookies, slicing some pieces differently and putting them into a new box; it can spread or concentrate risk and change how returns respond to defaults. Investors care because resecuritization adds complexity, can amplify losses in stress, and affects transparency and liquidity compared with buying the original assets.

abs financial

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.

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• Pagaya’s PAID resecuritization program now carries dual AAA ratings from Fitch and Kroll
• Expansion to a major rating agency reflects consistent credit performance and enhances secondary market liquidity
• Transaction features personal loans with ~24 months of seasoning, offering enhanced stability and a proven track record

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 its latest PAID resecuritization transaction, PAID-2026-R2, totaling $368 million. Notably, this marks the program’s first transaction to be rated by Fitch Ratings.

The deal garnered demand from 21 unique investors, with the majority returning from prior transactions. This is the fifth PAID resecuritization transaction, a program that was designed for investors seeking seasoned personal loan collateral with an established performance history. The addition of Fitch serves as an additional independent validation of the platform’s credit strength, underpinned by the rigorous, multi-layered due diligence processes required by the rating agencies.

“Expanding our ratings partnerships to include Fitch is a pivotal step in the continued maturation of the PAID program. The addition of the Fitch rating will be instrumental to unlocking untapped pockets of capital and broadening our investor universe. This second rating serves as a signal of the platform’s strength and our commitment to institutional-grade transparency,” said Sahil Chandiramani, Head of Capital Markets at Pagaya.

Since 2018, Pagaya has issued more than $36 billion across 87 ABS transactions with over 165 institutional investors, supporting originations across personal loan, auto, and POS programs.

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 consumer credit and other 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. For more information, visit pagaya.com.

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Source: Pagaya Technologies LTD.