TEL AVIV, Sept 23 (Reuters) - U.S.-Israeli Pagaya, which uses artificial intelligence (AI) to manage institutional money, said on Monday it was issuing a $200 million consumer credit asset-backed security (ABS) led by structuring agent Cantor Fitzgerald.
This transaction is Pagaya’s largest to date and the fourth in seven months, bringing the firm’s total ABS issuance to $515 million.
Pagaya’s AI analyses millions of data points to select and purchase individual loans instead of scrutinizing a pool of previously assembled assets.
“We’re seeing huge demand from institutions looking for better returns in this low-rate climate while not overexposing themselves,” Pagaya CEO Gal Krubiner said.
In April the firm raised $25 million in a funding round led by Oak HC/FT. (Reporting by Tova Cohen Editing by Ari Rabinovitch)