Using AI to select and purchase individual loans, unlocking the
potential of the ABS market
NEW YORK & TEL AVIV, Israel–(BUSINESS WIRE)–Pagaya, a global financial technology company using artificial
intelligence (AI) to reshape asset management, today 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.
Pagaya is a financial technology company reshaping asset management
using machine learning and big data analytics to manage institutional
money. With a focus on fixed income and alternative credit, Pagaya
offers a variety of discretionary funds to institutional investors,
including pension funds, insurance companies and banks. Pagaya’s unique
technology platform, Pagaya Pulse, runs on a suite of artificial
intelligence technologies and state-of-the-art algorithms to
consistently deliver a high and scalable performance edge. The company
was founded in 2016 by seasoned finance and technology professionals
with offices in New York and Tel Aviv.
About Cantor Fitzgerald
Cantor Fitzgerald, a leading global financial services group at the
forefront of financial and technological innovation has been a proven
and resilient leader for over 65 years. Cantor Fitzgerald & Co. is a
preeminent investment bank serving more than 7,000 institutional clients
around the world, recognized for its strengths in fixed income and
equity capital markets, investment banking, prime brokerage, and
commercial real estate finance and for its global distribution platform.
Cantor Fitzgerald & Co. is one of 23 primary dealers authorized to trade
U.S. government securities with The Federal Reserve Bank of New York.
For more information, please visit http://www.cantor.com.
Note to Editors: Howard W. Lutnick, Chairman & Chief Executive Officer,
and Anshu Jain, President, lead Cantor Fitzgerald, L.P., the parent
company of Cantor Fitzgerald & Co.