Global technology company Pagaya has announced that it has completed a PAID 2025-5, a USD 500 million asset-backed securitisation (ABS) supported by consumer loans originated on its network.
According to Pagaya, the deal was upsized from an initial target of USD 400 million and obtained a AAA rating from Kroll Bond Rating Agency (KBRA). The current deal comes as the fifth fully-prefunded PAID transaction of 2025, continuing the company’s execution across its ABS programmes. Also, the announcement follows the closing of Auto RPM 2025-4, bringing its year-to-date ABS issuance to approximately USD 4.6 billion across personal loan, auto, and point-of-sale verticals.
The deal saw participation from 30 unique investors, including five new ones, four of whom are new to Pagaya’s capital markets programme. The company plans to continue to scale its investor base and financing flexibility through its ABS and forward-flow programmes, facilitating the development of lending partners and institutional investors. As detailed by Pagaya, since 2018, the company has finalised 75 securitisations, gathering nearly USD 31 billion in capital to fund loans originated through its network.
Furthermore, commenting on the news, representatives from Pagaya emphasised that the latest PAID transaction underlines the consistent investor interest and the capabilities of their company’s network to provide repeatable securitisations across asset classes. As part of its offering, Pagaya delivers financial products and services that focus on supporting individuals and improving the ecosystem. Through machine learning, a data network, and an AI-enabled approach, the company provides consumer credit and residential real estate products for its partners, their customers, and investors.
Latest news from Pagaya
The end of May 2025 saw Pagaya issuing USD 300 million in asset-backed securities to support the expansion of its consumer lending operations into the BNPL industry. The company planned to leverage the funding to finance BNPL loans originated by Klarna. The bond sale was being arranged by JP Morgan Chase and Atlas, a division of Apollo Global Management. The development marked a turn for Pagaya, which had traditionally securitised unsecured personal and auto loans.
