Pagaya Hits Record $7.6B in ABS Issuance After $400 Million Auto Deal—What Does This Mean for Investors?
New $400 Million Auto ABS Pushes Pagaya to New Heights in 2024
Pagaya Technologies (NASDAQ: PGY) announced it has closed a $400 million auto asset-backed securitization (ABS) labeled RPM 2025-6, setting a new company record of $7.6 billion in annual ABS issuance as of mid-2024. This latest deal reflects a surge of activity across Pagaya’s platform, bringing the company’s year-to-date ABS transactions to 18—a milestone that underscores both investor confidence and a robust, data-driven approach to structuring financial assets.
Record ABS Volume Driven by Growing Institutional Demand
What stands out about Pagaya’s trajectory is not just the sheer scale of its ABS program, but also the expanding base of institutional partners backing these transactions. The RPM 2025-6 deal was supported by both new and returning investors, signaling repeated confidence in the quality of Pagaya’s collateral and structures. According to Pagaya’s Head of Capital Markets, Sahil Chandiramani, the consistent participation from institutional investors validates both the company’s approach and the stability of its asset pipeline.
| ABS Deal | Size ($M) | Total ABS YTD ($B) | Number of ABS YTD |
|---|---|---|---|
| RPM 2025-6 (Latest) | 400 | 7.6 | 18 |
Consistent Execution and Lower Cost of Capital: Signs of Platform Durability
Pagaya credits its record-breaking pace to “disciplined pricing and optimized structures,” factors that have enabled it to improve ABS cost of capital and deliver high-quality, well-aligned assets to investors—even amid changing market conditions. This is no small feat given that ABS markets have been challenging in recent years. CFO Evangelos Perros points out that Pagaya’s repeatable model and disciplined execution keep the company resilient and positioned for continued growth through all market cycles.
Investor Takeaway: Scaling Responsibly with Strong Asset Quality
The key question for investors: Is this growth sustainable, and what does it mean for Pagaya’s broader strategy? With 150+ institutional investors engaged and ongoing programmatic issuance, Pagaya’s expansion appears grounded in data-driven underwriting and careful risk management. While continued market volatility may present challenges, the current scale suggests a level of institutional trust and platform resilience that is difficult to ignore.
As Pagaya keeps pushing its ABS program to new records, investors may want to keep an eye on future deal flow and performance metrics. The next few quarters will likely reveal whether Pagaya can maintain both quality and growth—especially as its network and deal complexity scale further.
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