The firm issued $3.7 billion of ABS during the second quarter, a 76.2% sequential jump. Pagaya aggregates auto loans, unsecured consumer loans and point-of-sale financing products.
Fitch ratings found that early-stage delinquencies and cumulative default rates for consumer ABS deals are higher following a servicer bankruptcy or originator wind-down.
The firm started offering credit cards in 2024 and is poised to top more than one million cardholders this year. The monthly payment rate on Robinhood’s gold card is well above MPRs for cards from many other firms, thanks to the 3% cash back offered on all transactions.
FHFA plans to issue a proposed rule regarding credit-risk retention and the SEC is working toward a proposal to encourage issuance of publicly registered MBS and ABS.
Byzfunder issued its first ABS last week, a transaction that was three times oversubscribed by investors. Repeat issuers are also ramping up originations and issuance volume.
RecFi was set to issue a $143.3 million ABS backed by loans for boats and recreational vehicles. The issuer indefinitely postponed the issuance amid volatility in the financial markets.
Ledn issues ABS backed by Bitcoin loans; fire at SFVegas prompts shift in exhibit hall; banks seek enhanced capital relief for CRTs; Fitch launches group for private ratings; Upstart sells auto loans to Bayview.
The ABS is backed by 5,441 fixed-rate balloon loans tied to bitcoin holdings. The loans have an outstanding balance of $199.1 million. There are concerns about rising LTV ratios as the value of bitcoin drops.
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