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.
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.
machine learningtechnical
Machine learning is a set of computer programs that learn patterns from large amounts of data and improve their predictions or decisions over time, like a recipe that gets better each time it’s adjusted based on taste tests. For investors it matters because these systems can speed up analysis, spot trends or risks humans might miss, automate routine work, and potentially create competitive advantages or cost savings that affect a company’s performance.
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PAID 2026-5 marks Pagaya’s largest personal loan ABS transaction since 2022
The upsized deal brings Pagaya’s total issuance this year to a record $7.5 billion
NEW YORK--(BUSINESS WIRE)--
Pagaya Technologies Ltd. (NASDAQ: PGY) (“Pagaya”), a global technology company delivering AI-driven product solutions for the financial ecosystem, today announced the closing of an upsized $900 million AAA-rated personal loan ABS transaction (PAID 2026-5).
“Upsizing this transaction to $900 million – one of the largest in our company’s history – underscores the acceleration of our personal loan platform and the endurance of our PAID shelf,” said Sahil Chandiramani, Head of Capital Markets at Pagaya. “As we continue expanding loan growth in a prudent way, institutional investors are responding with strong, repeat demand for our assets."
Thirty-seven unique investors participated, including four new investors to Pagaya’s broader ABS platform and five new investors to Pagaya’s PAID shelf.Year to date, 24 new investors have joined Pagaya’s ABS platform.The upsized deal brings Pagaya’s year-to-date personal loan ABS issuance to $4.7 billion and Pagaya’s total issuance this year to $7.5 billion, both marking records for the company.
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.
