Pagaya Announces New $500 Million Personal Loan ABS Transaction, Underscoring Strong Demand
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Key Terms
asset-backed securitizationfinancial
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.
pass-throughfinancial
A pass-through is a structure or arrangement in which income, expenses, tax obligations, or payments move directly from one party to another without being held or taxed first by an intermediary. For investors, it matters because it determines who actually receives cash flows and who bears risk or tax bills — like a relay baton handed straight to the next runner rather than paused at a middleman — affecting returns and tax timing.
forward-flowfinancial
A forward-flow is a standing agreement under which one party regularly sells or transfers future assets or revenue streams to another party over a set period, rather than as a one-time sale. Investors care because it creates a predictable, ongoing source or outflow of cash—like a subscription or recurring delivery—so it affects a company’s short-term liquidity, long-term revenue visibility and risk profile.
APIstechnical
APIs are sets of rules that let different software systems talk to each other, like standardized doorways that let apps, data services and websites exchange information without needing to be rebuilt each time. For investors, APIs matter because they speed product development, enable digital partnerships and data feeds, create new revenue or cost savings, and introduce operational or security dependencies that can affect growth and risk.
Eighth PAID deal of 2025 highlights investor confidence in Pagaya’s platform and performance across consumer markets
Over $8 billion of capital commitments raised year-to-date to fund all asset classes across Pagaya’s ABS programs
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 PAID 2025-8, a $500 million asset-backed securitization (ABS) backed by consumer loans originated on the Pagaya network. The AAA-rated transaction brings Pagaya’s total amount raised via ABS to fund personal loans year-to-date to approximately $5.4 billion.
This is the eighth fully-prefunded PAID deal of the year and 19th deal across all asset classes, underscoring Pagaya’s consistent execution and investor interest and confidence in Pagaya’s data and AI-driven credit capabilities. To date this year, 74 unique investors have participated in Pagaya’s PAID platform. Investor engagement remains strong as consumer credit performance demonstrates continued resilience, supporting stable asset performance across the platform. Pagaya’s ability to deliver durable results in varying macro environments has reinforced investor trust in its funding programs.
The Company has also seen a continued reduction in cost of capital over time, further strengthening its ability to scale efficiently. Pagaya continues to broaden its investor base and enhance funding diversification through its ABS, pass-through and forward-flow programs.
“Our momentum in the PAID program reflects one of our greatest strengths: the trust that investors place in our platform,” said Sahil Chandiramani, Pagaya’s Head of Capital Markets. “We pride ourselves in bringing structures that are fit to market and built for where we are in the credit cycle. Pagaya is focused on conservative credit selection to continue to drive performance for our investors.”
Currently, the company has over 150 institutional investors in its network across all programs. Since 2018, the Company has completed 83 securitizations, raising over $34 billion in capital to fund loans originated through its network. Pagaya funds just over $10 billion in loans, out of the over $1 trillion it sees coming through partner APIs, remaining intentionally conservative in both its credit and funding decisions and ensuring the Company scales responsibly while continuing to deliver strong, predictable performance for both investors and partners.
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.
