Pagaya Technologies Ltd. closed its PAID‑2026‑R2 personal‑loan securitization on April 15 2026, raising $368 million from 21 investors, most of whom had participated in earlier deals. The transaction marks the first time the program has been rated by Fitch Ratings, giving the PAID program a dual AAA rating alongside its existing Kroll rating and expanding the company’s investor base beyond traditional asset‑backed securities.
The dual AAA rating signals strong credit quality and robust performance of the underlying personal‑loan collateral, which has an average seasoning of roughly 24 months. By securing a Fitch rating, Pagaya enhances the liquidity of its securities, broadens its appeal to institutional investors, and positions the company to tap untapped capital pools that were previously less accessible under a single‑agency rating.
Pagaya’s strategy of diversifying its funding mix is reinforced by this transaction. The PAID‑2026‑R2 deal adds a high‑quality tranche that complements the company’s broader ABS portfolio, which includes recent $600 million PAID 2026‑2 and $800 million PAID 2026‑1 issuances, as well as an $800 million auto ABS (RPM 2026‑1) and a $450 million auto ABS (RPM 2026‑R1). Together, these issuances total over $36 billion in ABS since 2018, underscoring Pagaya’s scale and execution capability in the structured‑finance market.
Sahil Chandiramani, Head of Capital Markets, said the Fitch partnership “is a pivotal step in the continued maturation of the PAID program. The addition of the Fitch rating will be instrumental to unlocking untapped pockets of capital and broadening our investor universe.” The transaction aligns with Pagaya’s recent shift toward higher‑margin, AI‑driven lending products and its goal of maintaining GAAP profitability, which the company reported for four consecutive quarters in 2025. Analysts have responded with a “Strong Buy” recommendation for PGY, citing the company’s fee‑based revenue growth and robust guidance for 2026.
The PAID‑2026‑R2 securitization demonstrates Pagaya’s ability to execute large‑scale, high‑quality financing while reinforcing its dual‑rating strategy, thereby strengthening its capital‑raising platform and supporting its broader growth objectives.
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