Pagaya, a global AI asset management fintech, announced $100 million in actively managed asset-backed securities (ABS) led by structuring agent Cantor Fitzgerald. The fintech will use its AI to select and purchase individual loans as opposed to traditional ABS mechanics of securitizing a pool of previously assembled assets.
Over $450 million in specialized investment solutions has been created using the proprietary AI, which analyzes millions of data points to assess risk in different financial instruments and identifies emerging alternative asset classes while seeking to generate a stable return. Pagaya will provide active portfolio and risk management to the vehicle.
Gal Krubiner, Pagaya’s CEO and co-founder, said in a statement that it’ll be just a few years before all collateralized loan obligations (CLOs), mortgage-backed securities (MBS), and ABSs are being managed by artificial intelligence.