Pagaya Technologies Ltd. (NASDAQ: PGY), an AI-driven technology company reshaping the financial services ecosystem, announced the closing of RPM 2026-4 on July 16, 2026, a $750 million upsized auto asset-backed securitization--Pagaya's fourth fully pre-funded auto ABS of the year and its largest ever. Forty-one unique investors participated, including six new to Pagaya's broader ABS platform. The deal pushes total 2026 pre-funded auto ABS issuance to $2.25 billion and introduces Pagaya's inaugural excess spread tranche, a structural innovation designed to optimize cash flow distribution and capture portfolio residual returns.

A Record That Broke Twice Before Setting Again

RPM 2026-4 is the third time this year Pagaya has set a new company record for its largest-ever auto ABS deal. RPM 2026-1 closed at $400 million in March, establishing the initial 2026 benchmark, while RPM 2026-3 upsized to $600 million in May, breaking that record. Now RPM 2026-4 upsizes again to $750 million, breaking its own predecessor's mark. Each successive record reflects the same dynamic: investor demand at pricing repeatedly exceeded the initial deal size, giving Pagaya the ability to upsize. Head of Capital Markets Sahil Chandiramani noted that the number of investors participating in Pagaya's RPM shelf has more than doubled since the start of 2025, a clear signal of deepening institutional confidence in the quality and consistency of the collateral Pagaya brings to market from the nation's largest auto lenders.

The Excess Spread Tranche Signals Structural Maturation

Beyond the headline size, RPM 2026-4 introduces a structural first for Pagaya's auto ABS program: an inaugural excess spread tranche. In a standard ABS structure, excess spread--the difference between interest collected from borrowers and interest paid to noteholders--flows back to the originator after covering expenses and credit losses. By creating a dedicated tranche to capture that residual, Pagaya optimizes how cash flows distribute across the capital structure and retains more of the economic upside from strong collateral performance. This is a feature common among mature, large-scale ABS issuers who have sufficient track record to offer investors transparent access to portfolio tail returns. Its inclusion in RPM 2026-4 signals that Pagaya views its auto program as sufficiently seasoned to support more sophisticated structural features--a meaningful step in the platform's commercial evolution.

Record Auto Issuance Builds on a Broader 2026 ABS Surge

The auto ABS momentum sits inside an even larger 2026 issuance story. Pagaya's year-to-date ABS volume across auto and personal loan programs already exceeded $5.5 billion as of June 2026--a record pace. The personal loan program ran four consecutive upsized transactions in 2026, including an $800 million deal in June that brought year-to-date personal loan issuance to nearly $4 billion. Together, the two programs have pushed Pagaya's total lifetime ABS issuance since 2018 to more than $40 billion across 92 transactions. Texas Capital recently initiated coverage with a Buy rating and a $27 price target, citing Pagaya's attractive valuation and its AI-enabled underwriting edge as differentiated in a consumer credit landscape where lenders increasingly compete on decisioning speed and accuracy rather than rate alone.

Strategic Investment Summary

• Record Deal: Pagaya (NASDAQ: PGY) closed RPM 2026-4, a $750 million upsized auto ABS, on July 16, 2026, which is its fourth fully pre-funded auto ABS of 2026 and the largest in company history, with 41 unique investors including six new to the platform.
• Three Records in One Year: RPM 2026-4 marks the third time Pagaya set a new auto ABS record in 2026, following a $400 million deal in March and a $600 million deal in May, each upsized from its original target on investor demand.
• Structural Innovation: RPM 2026-4 introduces Pagaya's inaugural excess spread tranche, optimizing cash flow distribution and capturing portfolio residual returns--a feature associated with mature, seasoned ABS programs.
• 2026 Issuance Pace: Total pre-funded auto ABS in 2026 now stands at $2.25 billion; combined auto and personal loan ABS volume exceeded $5.5 billion year-to-date as of June 2026, a record pace for the company.
• Lifetime Scale: Pagaya has raised more than $40 billion across 92 ABS transactions since 2018, with the investor base on its auto RPM shelf more than doubling since the start of 2025.
• Analyst Coverage: Texas Capital initiated coverage with a Buy rating and $27 price target, citing Pagaya's AI-enabled underwriting edge and attractive valuation in the consumer credit market.

Find out more about the latest corporate developments and financial reports at the Pagaya Technologies investor portal.

The post Pagaya Closes Record $750 Million Auto ABS Deal as 2026 Issuance Pace Reaches $2.25 Billion appeared first on PRISM MarketView.

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