Consumer ABS

With Theorem, Pagaya's fund management business is expected to grow to more than $3 billion of capital

Stubborn inflation is expected to work its way down, but combined with higher-for-longer interest rates, consumers are feeling the effects differently across the credit spectrum.

All three tranches have a May 15, 2030 final maturity date and are expected to yield 5.4% on the three-month interpolated yield curve.

Citing auto sales as a potential leading indicator, observers say the labor market's health might be overstated, while auto ABS assets start to underperform.

The latest securitization coincides with the company announcing a partnership with U.S. Bank to provide personal loans to borrowers.

Direct lenders are trying to get their hands on consumer loans, cutting into banks' business and taking advantage of the sometimes volatile market for asset-backed debt.

The $500 million in notes from the current deal are part of a multi-issuance series consisting of classes A, B, C, and D, with a 21.00% level of credit enhancement on the class A notes.

Direct lenders offer almost guaranteed funding at a time when borrowing in the $1.6 trillion U.S. ABS markets is increasingly unpredictable, and banks nurse losses.

First social bond will serve rural borrowers who mostly earn under $50,000 in net income per year.

Charge-off and payment rates had improved, due to consumer assistance programs and government stimulus funds amid COVID-19 economic slowdowns.