Seeking Alpha

Solar stocks are having a good day (TAN +2.8%). One possible reason: a weekend FT report that...

Solar stocks are having a good day (TAN +2.8%). One possible reason: a weekend FT report that observes bankers are close to securitizing solar panel leases into bonds. Functioning much like MBS', solar bonds would package panel leases and be supported by cash flows from related electricity purchase commitments. SPWR +9.8%. SOL +6.1%. YGE +6.5%. STP +5.5%. FSLR +5.5%. LDK +4.5%. JASO +4.5%. TSL +4.4%. (also)
Comments (4)
  • not a bad idea.
    11 Feb 2013, 11:45 AM Reply Like
  • hum, it looks like a Solar subprimes....
    11 Feb 2013, 12:30 PM Reply Like
  • The question is how much subsidy and tax advantage is built into the revenue stream to support the bonds.

     

    Once the solar is installed, the portion of the revenue stream priced according to prevailing electric buy rates is pretty safe.

     

    Given the ongoing politics of solar, I'd be pretty nervous about the subsidy/tax advantage/preferential portion of the revenue stream more than five years out.
    11 Feb 2013, 01:56 PM Reply Like
  • Man the absolute zombie-like search for yield (brains!!) is getting really scary.

     

    Thanks, Mr. Bernanke NOT!!
    11 Feb 2013, 07:12 PM Reply Like
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