Pagaya Announces First-Ever $100 Million ABS Fully Managed By AI
Pagaya, a global financial technology company using artificial intelligence (AI) to reshape asset management, announced $100 million in actively managed asset-backed securities (ABS) led by structuring agent Cantor Fitzgerald.
Since its founding in 2016, Pagaya has worked with sophisticated and forward-looking institutional investors using its proprietary AI to create over $450 million in specialized investment solutions. With an investment team of 20 data scientists and AI specialists, Pagaya’s AI analyzes millions of data points to assess risk in different financial instruments, identifies emerging alternative asset classes and seeks to generate a stable return.
“We’re thrilled to provide cutting edge opportunities to our partners, paving the way for practical uses of AI in the ABS market,” said Gal Krubiner, Pagaya’s CEO and co-founder. “We look forward to creating more opportunities like this in the future, and to driving the adoption of AI in traditional finance. We’re just a few years away from all collateralized loan obligations (CLOs), mortgage-backed securities (MBS), and ABSs being managed by AI.”
For this next generation ABS, Pagaya will use its AI to select and purchase individual loans; differentiating from traditional ABS mechanics of securitizing a pool of previously assembled assets.
“The ability to seize opportunities like this is becoming more and more necessary, especially in this climate,” said Ed Mallon, Pagaya’s chief investment officer. “With market forecasts uncertain, institutions are increasingly turning to Pagaya to weather the storm.”
Pagaya will provide active portfolio and risk management to the vehicle, allowing investors unprecedented access to Pagaya’s suite of offerings.