Pagaya Technologies is scaling its capital markets footprint by successfully closing its 100th asset-backed securitization (ABS) transaction. The deal, identified as RPM 2026-5, consists of $650 million backed by auto loans. This milestone marks a significant expansion of the company's ability to convert AI-underwritten consumer credit into institutional-grade investment vehicles for a global investor base.
RPM 2026-5 Auto Loan Issuance
The $650 million RPM 2026-5 transaction serves as a major milestone for Pagaya, representing the company's 100th ABS deal since its inaugural securitization in 2018. This specific issuance focuses on auto loans, contributing to a broader strategy of diversifying funding across multiple asset classes. The company reported that this deal brings its total issuance for the current year to over $10 billion. By successfully executing this transaction, Pagaya is attempting to demonstrate the scalability of its AI-driven underwriting models within the highly competitive automotive lending sector.
Pagaya Lifetime Capital Engine
Since beginning its securitization program in 2018, Pagaya has raised more than $44 billion to fund loan originations. This capital has supported various products, including personal loans, auto loans, and point-of-sale loans. The RPM 2026-5 deal saw participation from 35 unique investors, including five new investors to the Pagaya RPM shelf. This influx of new capital suggests that the company is successfully broadening its institutional reach. Pagaya is positioning its proprietary API and machine learning network as a core component of a robust capital engine designed to support lending partners through diversified funding sources.
Key Takeaways
- Pagaya closed RPM 2026-5, a $650 million asset-backed securitization backed by auto loans.
- The company has reached a lifetime ABS issuance milestone of over $44 billion since 2018.
- The transaction included participation from 35 unique investors, five of whom are new to the RPM shelf.
FinanceInsyte's Take
In our view, reaching the 100th ABS transaction is less about the number and more about the proven repeatability of Pagaya's capital engine. By attracting five new investors to the RPM shelf during this $650 million auto deal, Pagaya is signaling that its AI-underwritten assets maintain sufficient institutional appeal to expand its buyer base. This suggests the company is successfully transitioning from a niche player to a high-volume, multi-asset securitization powerhouse.
Questions & Answers
How much total capital has Pagaya raised through ABS since 2018?
Pagaya has raised over $44 billion in lifetime ABS issuance to fund various loan originations, including personal, auto, and point-of-sale loans.
What is the scale of Pagaya's securitization activity in the current year?
The company has reached over $10 billion in total ABS issuance for the current year following the closing of the $650 million RPM 2026-5 deal.
Who participated in the RPM 2026-5 transaction?
The deal involved 35 unique investors, which included five investors who are new to Pagaya’s RPM shelf.
What specific asset class does the 100th transaction cover?
The landmark 100th transaction, RPM 2026-5, is an asset-backed securitization specifically backed by auto loans.
Source: Pagaya
