2024-03-18 17:05:27 ET
Summary
- Pagaya's recent losses and volatility have raised questions about its viability.
- Yet the company has seen steady growth in network volume, customers, and securitizations, and expects to reach sustainable profitability in the near future.
- A current challenge for Pagaya may be its required risk-retention investments, created by the rapid growth in its ABS securitizations. Has this led to a capital constraint?
- The recent equity raise (March 13, 2024) and credit facility (February 7, 2024) should have relieved this constraint in the interim.
As I sit down to write this evening, investors may have burning questions concerning Pagaya Technologies Ltd.'s ( PGY ) long-term path to profitability. Is the investment still viable?...
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For further details see:
Pagaya's Race Against Time