Pagaya Closes AAA-Rated Upsized $600 Million RPM 2026-3 Auto ABS Transaction

Key Terms

asset-backed securitization financial

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.

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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• RPM 2026-3 is the largest Auto ABS deal in Pagaya’s history
• Ramp-up of funding capacity reflects accelerating growth of Pagaya's auto platform across lending partners

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 2026-3, a $600 million upsized auto asset-backed securitization (ABS). This marks Pagaya’s third fully pre-funded auto ABS transaction of 2026 and its largest to date, bringing the total amount of pre-funded auto ABS raised this year to $1.5 billion.

“We are encouraged by market demand and the enduring confidence in Pagaya’s RPM shelf,” said Sahil Chandiramani, Head of Capital Markets at Pagaya. “Upsizing a deal in the current climate is a testament to our track record and the consistent execution of Pagaya’s platform. We remain focused on delivering fit-to-market structures for our investors while maintaining a disciplined approach to risk management."

Twenty-eight unique investors participated in this transaction, including four new investors to Pagaya’s broader ABS platform and five new investors to Pagaya’s auto ABS shelf. Since this time last year, the number of unique investors participating in the RPM shelf has more than doubled. Since 2018, Pagaya has raised more than $38 billion across 90 ABS transactions to fund loan originations across multiple products, including personal loan 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 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.