Pagaya Closes $400 Million RPM 2026-1 Auto ABS Transaction; Demonstrating Strong Momentum of Auto Platform into 2026
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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.
forward flowfinancial
A forward flow is an ongoing agreement in which a buyer commits to purchase assets or loans as they are created by a seller, often at pre-agreed pricing and quality guidelines. For investors, it matters because it supplies a predictable stream of assets and revenue while shifting credit and origination risk to the buyer—think of it like a supermarket subscription that guarantees steady deliveries rather than one-off purchases.
First Auto ABS of 2026 after raising more than $8.5 billion in 2025 across all ABS transactions
Pagaya’s Auto ABS shelf, RPM, now includes assets generated via Pagaya’s partnership with GLS
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 2026-1, a $400 million auto asset-backed securitization (ABS). The transaction marks the first Auto ABS transaction of Pagaya in 2026 after a record $2+billion in auto ABS issuance in 2025, underscoring the Company’s ability to consistently deliver attractive, high-quality auto assets to its investors.
“The execution of RPM 2026-1 demonstrates sustained market demand for Pagaya’s auto collateral and proven deal structures,” said Sahil Chandiramani, Head of Capital Markets at Pagaya. “Welcoming back repeat investors alongside new funding partners, reinforces the strength of the Pagaya platform. We are committed to delivering another year of robust issuance across asset classes.”
More than 20 unique investors participated in this transaction, the majority of whom were repeat investors. Year-over-year, the number of investors participating in the RPM shelf has increased by 62%. Since 2018, Pagaya has raised more than $35 billion across 84 ABS transactions to fund loan originations across multiple products, including personal loan and auto. The execution of RPM 2026-1 supports Pagaya's financial strategy to pursue a diversified funding strategy across ABS & Forward Flow deals.
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.
