Pagaya Technologies closed a $400 million RPM 2026‑1 auto asset‑backed securitization on March 11 2026, marking the company’s first auto ABS issuance of the year. The deal was structured to provide liquidity for the firm’s auto‑platform and to reinforce its diversified funding mix.
The transaction follows a record $2 billion in auto ABS issuance in 2025 and adds to a total of $8.5 billion in all ABS transactions that year. More than 20 investors participated, with a majority being repeat buyers, and the deal saw a 62% year‑over‑year increase in investor participation on the RPM shelf, underscoring sustained demand for Pagaya’s auto collateral and proven deal structures.
Strategically, the issuance supports Pagaya’s broader capital‑markets strategy, which blends ABS and forward‑flow agreements to maintain a robust balance sheet. Since 2018, the company has raised over $35 billion across 84 ABS transactions, positioning it as a leading player in the securitization market while leveraging its AI‑driven underwriting platform to attract institutional capital.
Pagaya’s business model centers on AI and machine learning to deliver fee‑based solutions for lenders and institutional investors. The company’s focus on disciplined risk management and a shift away from higher‑risk credit segments has helped it achieve GAAP profitability in 2025, with revenue growing 26% to $1.3 billion and a net income of $81 million.
"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.
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