Pagaya Raises $399M in Subprime Debt Deal with Higher Rates

Pagaya Technologies has raised $399 million through a subprime auto loan-backed bond sale, offering higher rates due to increased investor scrutiny. The lender's aggressive originate-to-sell model has drawn attention following the bankruptcy of Texas subprime car lender Tricolor Holdings. The lowest-rated part of Pagaya's offering priced at 7.4 percentage points above the benchmark rate, compared to an initial range of 6.5 to 6.75 percentage points.