CPP Investments has refreshed its forward‑flow deal with fintech lender Affirm, tightening a 24‑month commitment to $1.7bn that can lift to $2.2bn. The move follows a partnership that began in 2019, during which the pension fund has pulled in roughly $14bn of affirm assets through forward flows and securitisations.

Under the new terms, the arrangement will back roughly $8bn of consumer installment loans over its lifespan. By scaling the deployment, CPP can deepen its exposure to the growing buy‑now‑pay‑later market, which has surged as retailers seek alternative credit channels amid tightening credit conditions. This expansion aligns with CPP’s broader strategy to diversify its fixed‑income holdings.

The forward‑flow model allows CPP to lock in inventory at favorable rates while providing Affimr with a steady capital source. The partnership has already proved profitable, with the fund acquiring assets at discount spreads that outperform traditional securitisation returns. Such deals enhance CPP’s yield profile while limiting exposure to loan defaults.

Overall, the $2.2bn ceiling signals CPP’s confidence in the buy‑now‑pay‑later sector and its willingness to commit substantial capital to non‑bank lenders. The agreement also positions CPP to capture a larger slice of consumer credit as alternative financing grows. This move may pressure traditional banks to revisit their credit strategies.