Pagaya, a global financial technology company using artificial intelligence (AI) to reshape asset management, today announced the closing of a consumer credit asset-backed security (ABS) at $200 million. The ABS, like the three before it, will be actively managed by Pagaya’s AI.
This transaction is Pagaya’s largest to-date and the fourth in seven months, bringing the firm’s total ABS issuance to $515 million. The new securitization also places Pagaya as a top ten issuer in 2019, according to data from Finsight.
This issuance includes a mezzanine tranche which is a strong signal of increased investor faith in Pagaya and the company’s underwriting technology.
“It’s exciting to see this kind of innovation play so well in the ABS space,” said Gal Krubiner, Pagaya’s CEO and co-founder. “We’re seeing huge demand from institutions looking for better returns in this low-rate climate while not overexposing themselves. Our technology opens up a huge world of opportunity in an otherwise limited space.”
Pagaya’s team of data scientists, AI specialists and finance experts have built AI to analyze millions of data points and select individual loans instead of securitizing a pool of previously assembled assets to unlock more low-risk opportunities for institutional investors. The company continues to innovate in consumer credit and is considering new asset classes that would benefit from AI-driven underwriting.
“We are really excited with the development of the PAID shelf, and we’ve had a lot of success helping to expand their audience. We hope to continue to grow this partnership and develop Pagaya’s offerings going forward,” said Marshall Insley, Co-Head of Securitized Products, Cantor Fitzgerald.
Pagaya is a financial technology company reshaping asset management using machine learning and big data analytics to manage institutional money. With a focus on fixed income and alternative credit, Pagaya offers a variety of discretionary funds to institutional investors, including pension funds, insurance companies, and banks. Pagaya’s unique technology platform, Pagaya Pulse, runs on a suite of artificial intelligence technologies and state-of-the-art algorithms to deliver a high and scalable performance edge consistently. The company was founded in 2016 by seasoned finance and technology professionals with offices in New York and Tel Aviv.