Finally, some good news. From the Wall Street Journal,
Surging defaults on loans used to buy residential solar panels are cascading through Wall Street, catching bond investors and private-credit funds in their wake.
Some background from WSJ,
About 50,000 U.S. homes had solar panels installed last year, up from about 14,000 in 2019, according to the Solar Energy Industries Association. Falling panel prices fueled the surge, but so did easy credit. GoodLeap and competitors like Sunnova Energy International and Mosaic funneled loans to homeowners through local dealers who sold panels door-to-door.
Key takeaway: don’t buy anything sold door-to-door.
You can read the WSJ story, but it all devolves into the ago-old story of asset-backed securities. If you’ve seen the movie Margin Call, you know how that ends.
