Latest news with #PGIM
Globe and Mail
a day ago
- Business
- Globe and Mail
Will PGIM's $3B Facility Help Affirm Scale its BNPL Offerings Fast?
Affirm Holdings, Inc. AFRM has expanded its partnership with PGIM Fixed Income by establishing a new $3 billion revolving loan sale facility. This arrangement allows PGIM, a Prudential Financial, Inc. PRU unit, to purchase up to $500 million of Affirm's consumer loans at any given time over a 36-month period. This pass-through facility builds on PGIM's earlier $500 million investment made in December 2024 and reflects growing confidence in Affirm's loan portfolio. Through this facility, Affirm secured a reliable and flexible funding source for its buy now, pay later ('BNPL') offerings without the need to frequently tap volatile public debt markets. This development is significant because it enhances Affirm's financial stability and scalability. The revolving structure provides predictable access to capital, allowing Affirm to support loan growth and meet consumer demand even in fluctuating market conditions. It also demonstrates how large institutional investors like PGIM (over $145 billion in AUM) are increasingly embracing private credit arrangements with fintech companies. This is a positive signal for the broader BNPL industry as it matures into an asset class that significantly appeals to mainstream credit investors. Financially, the deal improves Affirm's funding flexibility and may reduce its overall cost of capital by limiting reliance on more expensive or less predictable public financing options. It also helps manage balance sheet risks, as the revolving structure caps the loan exposure at any time, ensuring liquidity and operational efficiency. Overall, this facility strengthens Affirm's capital position, supports growth and boosts investor confidence in its long-term business model. How PayPal and Block Are Expanding in the BNPL Space? PayPal Holdings, Inc. PYPL is strengthening its BNPL presence by launching a new physical PayPal Credit Mastercard, expanding usage both online and in stores. PYPL is also piloting in-store 'Pay Later' options in Germany, aligning with its 'PayPal Everywhere' strategy to drive broader adoption across retail channels. Meanwhile, Block, Inc. 's XYZ Afterpay is deepening its BNPL reach by integrating services into Cash App, offering in-app financing for eligible users. Additionally, Afterpay has expanded partnerships with merchants like StitchFix, PetMeds and Mejuri, enhancing its visibility at checkout. Both PayPal and Block are targeting seamless omnichannel experiences to capture the growing BNPL market. Affirm's Price Performance, Valuation and Estimates Shares of Affirm have gained 1.3% year to date, underperforming the broader industry and in line with the S&P 500 Index. Affirm's YTD Price Performance From a valuation standpoint, Affirm trades at a forward price-to-sales ratio of 5.09X, down from the industry average. AFRM carries a Value Score of F. The Zacks Consensus Estimate for Affirm's fiscal 2025 earnings implies a 100.6% improvement year over year, followed by massive growth next year. Image Source: Zacks Investment Research The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Prudential Financial, Inc. (PRU): Free Stock Analysis Report PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report Affirm Holdings, Inc. (AFRM): Free Stock Analysis Report Block, Inc. (XYZ): Free Stock Analysis Report
Yahoo
a day ago
- Business
- Yahoo
Will PGIM's $3B Facility Help Affirm Scale its BNPL Offerings Fast?
Affirm Holdings, Inc. AFRM has expanded its partnership with PGIM Fixed Income by establishing a new $3 billion revolving loan sale facility. This arrangement allows PGIM, a Prudential Financial, Inc. PRU unit, to purchase up to $500 million of Affirm's consumer loans at any given time over a 36-month period. This pass-through facility builds on PGIM's earlier $500 million investment made in December 2024 and reflects growing confidence in Affirm's loan portfolio. Through this facility, Affirm secured a reliable and flexible funding source for its buy now, pay later ('BNPL') offerings without the need to frequently tap volatile public debt markets. This development is significant because it enhances Affirm's financial stability and scalability. The revolving structure provides predictable access to capital, allowing Affirm to support loan growth and meet consumer demand even in fluctuating market conditions. It also demonstrates how large institutional investors like PGIM (over $145 billion in AUM) are increasingly embracing private credit arrangements with fintech companies. This is a positive signal for the broader BNPL industry as it matures into an asset class that significantly appeals to mainstream credit investors. Financially, the deal improves Affirm's funding flexibility and may reduce its overall cost of capital by limiting reliance on more expensive or less predictable public financing options. It also helps manage balance sheet risks, as the revolving structure caps the loan exposure at any time, ensuring liquidity and operational efficiency. Overall, this facility strengthens Affirm's capital position, supports growth and boosts investor confidence in its long-term business model. PayPal Holdings, Inc. PYPL is strengthening its BNPL presence by launching a new physical PayPal Credit Mastercard, expanding usage both online and in stores. PYPL is also piloting in-store 'Pay Later' options in Germany, aligning with its 'PayPal Everywhere' strategy to drive broader adoption across retail channels. Meanwhile, Block, Inc.'s XYZ Afterpay is deepening its BNPL reach by integrating services into Cash App, offering in-app financing for eligible users. Additionally, Afterpay has expanded partnerships with merchants like StitchFix, PetMeds and Mejuri, enhancing its visibility at checkout. Both PayPal and Block are targeting seamless omnichannel experiences to capture the growing BNPL market. Shares of Affirm have gained 1.3% year to date, underperforming the broader industry and in line with the S&P 500 Index. Image Source: Zacks Investment Research From a valuation standpoint, Affirm trades at a forward price-to-sales ratio of 5.09X, down from the industry average. AFRM carries a Value Score of F. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Affirm's fiscal 2025 earnings implies a 100.6% improvement year over year, followed by massive growth next year. Image Source: Zacks Investment Research The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Prudential Financial, Inc. (PRU) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report Affirm Holdings, Inc. (AFRM) : Free Stock Analysis Report Block, Inc. (XYZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
National Post
2 days ago
- Business
- National Post
Affirm and PGIM expand long-term capital partnership to invest up to $3 billion via revolving pass-through loan sale facility
Article content SAN FRANCISCO — Affirm (NASDAQ: AFRM), the payment network that empowers consumers and helps merchants drive growth, and PGIM Fixed Income, a Prudential Financial (NYSE: PRU) company and one of the largest global fixed income managers with $862 billion in assets under management 1, today announced the expansion of their capital partnership with a new revolving pass-through loan sale facility that will invest up to $3 billion over 36 months by purchasing up to $500 million of Affirm loans at any one time. Article content This unique revolving pass-through facility follows PGIM's earlier private purchase of $500 million in Affirm loans in December 2024 as well as previous investments in Affirm's assets via the company's asset-backed securitizations. PGIM manages a leading asset-based finance platform with more than $145 billion in assets under management across public and private securitized credit 1. Article content Article content 'PGIM is proud to expand our longstanding collaboration with Affirm. This agreement is a further testament to our commitment to finding durable sources of risk-adjusted returns for our clients through our selective origination process,' said Edwin Wilches, co-head of Securitized Products at PGIM Fixed Income. 'This innovative pass-through facility showcases our ability to find attractive opportunities across public and private markets and how our access to diverse pools of capital can deliver value to our partners.' Article content 'We are always in constant dialogue with our capital partners to better understand their needs and how we can deliver even more value to them,' said Brooke Major-Reid, Chief Capital Officer of Affirm. 'This first-of-its-kind facility for Affirm and PGIM does exactly that and demonstrates how we can utilize innovative structures to create winning partnerships. We greatly appreciate the PGIM team's support for our mission to deliver honest financial products that improve lives.' Article content Affirm empowers consumers with a transparent and flexible way to pay over time without any late or hidden fees. The company generated over $33 billion in gross merchandise volume (GMV) for the last twelve months ending March 31, 2025. With a diverse and durable funding model across multiple channels, Affirm's total funding capacity grew to $23.3 billion as of March 31, 2025, marking the ninth consecutive quarter that funding capacity increased. As a scaled and programmatic issuer, Affirm has issued 23 asset-backed securitizations totaling $11.5 billion with participation from over 150 unique capital partners across institution types, including: alternative asset managers, insurance companies, pension funds, sovereign wealth funds, hedge funds, and banks. Article content 1 Article content As of March 31, 2025 Article content About Affirm Article content Affirm's mission is to deliver honest financial products that improve lives. By building a new kind of payment network—one based on trust, transparency, and putting people first—we empower millions of consumers to spend and save responsibly, and give thousands of businesses the tools to fuel growth. Unlike most credit cards and other pay-over-time options, we never charge any late or hidden fees. Follow Affirm on social media: LinkedIn | Instagram | Facebook | X. Article content Article content Article content Article content Media Article content Article content Affirm: Article content press@ Article content Article content PGIM: Article content Article content Article content
Business Wire
2 days ago
- Business
- Business Wire
Affirm and PGIM expand long-term capital partnership to invest up to $3 billion via revolving pass-through loan sale facility
SAN FRANCISCO--(BUSINESS WIRE)--Affirm (NASDAQ: AFRM), the payment network that empowers consumers and helps merchants drive growth, and PGIM Fixed Income, a Prudential Financial (NYSE: PRU) company and one of the largest global fixed income managers with $862 billion in assets under management 1, today announced the expansion of their capital partnership with a new revolving pass-through loan sale facility that will invest up to $3 billion over 36 months by purchasing up to $500 million of Affirm loans at any one time. This unique revolving pass-through facility follows PGIM's earlier private purchase of $500 million in Affirm loans in December 2024 as well as previous investments in Affirm's assets via the company's asset-backed securitizations. PGIM manages a leading asset-based finance platform with more than $145 billion in assets under management across public and private securitized credit 1. 'PGIM is proud to expand our longstanding collaboration with Affirm. This agreement is a further testament to our commitment to finding durable sources of risk-adjusted returns for our clients through our selective origination process,' said Edwin Wilches, co-head of Securitized Products at PGIM Fixed Income. 'This innovative pass-through facility showcases our ability to find attractive opportunities across public and private markets and how our access to diverse pools of capital can deliver value to our partners.' 'We are always in constant dialogue with our capital partners to better understand their needs and how we can deliver even more value to them,' said Brooke Major-Reid, Chief Capital Officer of Affirm. 'This first-of-its-kind facility for Affirm and PGIM does exactly that and demonstrates how we can utilize innovative structures to create winning partnerships. We greatly appreciate the PGIM team's support for our mission to deliver honest financial products that improve lives.' Affirm empowers consumers with a transparent and flexible way to pay over time without any late or hidden fees. The company generated over $33 billion in gross merchandise volume (GMV) for the last twelve months ending March 31, 2025. With a diverse and durable funding model across multiple channels, Affirm's total funding capacity grew to $23.3 billion as of March 31, 2025, marking the ninth consecutive quarter that funding capacity increased. As a scaled and programmatic issuer, Affirm has issued 23 asset-backed securitizations totaling $11.5 billion with participation from over 150 unique capital partners across institution types, including: alternative asset managers, insurance companies, pension funds, sovereign wealth funds, hedge funds, and banks. 1 About Affirm Affirm's mission is to deliver honest financial products that improve lives. By building a new kind of payment network—one based on trust, transparency, and putting people first—we empower millions of consumers to spend and save responsibly, and give thousands of businesses the tools to fuel growth. Unlike most credit cards and other pay-over-time options, we never charge any late or hidden fees. Follow Affirm on social media: LinkedIn | Instagram | Facebook | X. About PGIM FIXED INCOME PGIM Fixed Income, with $862 billion in assets under management as of March 31, 2025, is a global asset manager offering active solutions across all fixed income markets. The company has offices in Newark, N.J., London, Amsterdam, Zurich, Munich, Paris, Singapore, Sydney, Hong Kong, and Tokyo. For more information, visit AFRM-PA
Yahoo
2 days ago
- Business
- Yahoo
Prudential Unit Lends $500 Million in Private Credit to Affirm
An investment arm of insurer Prudential Financial will buy up to $500 million of consumer loans from technology-backed consumer lender Affirm Holdings for a period of three years. Most of the loans come due in six months and Affirm will be able to re-lend the investment throughout the life of the deal, allowing it to finance $3 billion of buy-now-pay-later loans. Trump Bill Would Raise Estate Tax Exemption to $15 Million and Make It Permanent Pope Leo Takes On AI Trump Family's New Business Partner Is India's Richest Man How a Chinese-Owned Battery Maker's Bet on U.S. EVs Went Wrong Amazon CEO Says AI Will Lead to Smaller Workforce The deal is part of a growing wave of transactions pairing a handful of large private-credit investors with financial technology companies that are replacing banks as go-to lenders for the American public. Prudential's PGIM Fixed Income also purchased $500 million of Affirm loans in December and made a private investment in a $525 million securitization of consumer loans from SoFi Technologies. Affirm announced a $4 billion partnership with Sixth Street Partners in December and a $750 million deal with Liberty Mutual Investments in January. The insurers and pensions whose money PGIM manages are hungry to own private ABS, or asset-backed securities, because such debt pays a higher interest rate than publicly traded and even private corporate debt. PGIM aims to buy private ABS that returns about 1.5 percentage points more than public variants, said Edwin Wilches, the firm's co-head of securitized products. The company recently hired a new head of private ABS, Oliver Nisenson from private investment powerhouse Blackstone, to expand the business. Nonbank lenders like Affirm are cultivating stables of large financing partners to ensure they have sufficient capital to lend, even when public debt markets freeze up. Affirm focuses on three channels: warehouse loans from banks, public ABS bond sales and negotiated deals from private-credit firms, said Chief Capital Officer Brooke Major-Reid. Insurers, investment firms and nonbank lenders are increasingly teaming up to do lending that used to come from banks. That is creating complex entanglements that are new to regulators. Advocates say the new lenders are more stable than banks because they are disbursing cash from long-term investors rather than from daily deposits. Write to Matt Wirz at If Iran's Oil Is Cut Off, China Will Pay the Price The American Investor Taking On Swatch's Founding Family The Fed's Dot-Plot Predicament: False Precision in Uncertain Times More of Us Are Putting in Extra Hours After the Workday How to Make Sure Information on Your Old Computer Is Really, Truly Deleted
