Our CEO’s Observations from ABS Vegas Panel Discussion

This past week, our CEO Richard Matsui joined 6,000 structured finance professionals in Las Vegas to discuss the latest trends in asset backed securities. He spoke on a panel entitled “Solar ABS Panel: Understanding Market Potential” that included Danny Abajian (Director of Structured Finance, Sunrun), Andrew Giudici (Senior Director, Kroll Bond Ratings Agency), and Manish Kapoor (Managing Principal, West Wheelock Capital). It was exciting to see a packed, standing room-only session of more than a hundred professionals on what is usually a slow Tuesday afternoon.

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Thoughts from the White House meeting on Solar Finance

This past Wednesday (10/9), 30 leaders from the solar industry descended upon Washington to attend an invite-only meeting convened by the White House on “Increasing Capital Flows into the Solar Market.” It was a fascinating conversation, led by the President’s Counselor, John Podesta. Out of respect for the intimate nature of the dialogue, we won’t attribute statements to individuals, although we are glad to share some overall observations.

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Our thoughts on the SolarCity MyPower loan

We followed with great interest this week as SolarCity unveiled their MyPower residential loan product. Many articles have already covered some of the unique aspects of the loan, including that it is available to customers with a 680+ FICO and comes with a 30-year warranty, production guarantee, and monitoring service package. While we don’t yet know the particulars of exactly how the loan is structured, we think the structure raises a few interesting topics. We discuss below those elements that we have not yet seen covered by other articles. In particular, we think the loan highlights a central thesis held by our firm: the likelihood of customer payment in any solar financial product is a function of both credit risk and technical risk.

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kWh Analytics featured speaker at ABS East 2014

kWh Analytics CEO Richard Matsui joined 3,000 structured finance professionals in Miami to discuss the nascent solar asset class. With the continuation of the low interest rate environment, the investment community was eager to learn about this new investment opportunity–but were also equally wary of the risks inherent in this new frontier.