Pagaya Technologies Ltd. closed its inaugural auto resecuritization transaction, RPM‑2026‑R1, raising approximately $450 million from 17 institutional investors. The deal, which features auto loans with roughly 24 months of seasoning, marks the company’s first entry into the auto resecuritization market and launches its RPM‑R shelf of structured products.
The transaction is part of a broader capital‑markets push that saw Pagaya raise $800 million in a consumer‑loan ABS in February and $400 million in a standard auto securitization (RPM 2026‑1) in March. In 2025, the company raised more than $8.5 billion across its asset‑backed‑security platforms and had completed over 85 ABS transactions totaling more than $36 billion since 2018.
Pagaya’s move into resecuritization validates the performance of its AI‑selected loan portfolios. By packaging seasoned collateral, the company expands its funding mix beyond traditional ABS, improves liquidity, and supports the growth of its auto‑loan platform. The deal demonstrates that Pagaya’s data‑driven underwriting can attract a second round of institutional capital, a milestone that is rare in subprime auto lending where resecuritization is uncommon.
Sahil Chandiramani, Head of Capital Markets, said the transaction “validates our ability to package Pagaya’s data‑driven assets into diverse structures that appeal to a broad range of credit appetites.” The quote underscores the strategic importance of the deal in diversifying funding sources and reinforcing investor confidence in Pagaya’s AI model.
While the transaction strengthens Pagaya’s capital position, the company faces headwinds from rising delinquency rates in the non‑prime auto‑ABS segment. CEO Gal Krubiner has signaled a deliberate pullback from higher‑risk credit segments in favor of disciplined risk management and measured volume growth, setting revenue guidance of $1.4 billion to $1.575 billion for 2026.
The combination of expanded funding options and a cautious approach to risk positions Pagaya to sustain growth while mitigating potential credit losses. The resecuritization deal therefore represents a strategic pivot that balances liquidity expansion with a focus on quality and risk control.
Overall, the transaction marks a significant milestone for Pagaya, validating its AI‑driven model, broadening its capital‑raising capabilities, and positioning the company for continued growth amid a tightening credit environment.
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