Tesla’s (TSLA) Elon Musk gets credit for helping to create a new asset class in solar financing, according to one structured finance expert. ‘I think we’re on the brink of a new asset class coming out,’ said Benjamin Cohen, CEO of T-REX. T-REX focuses on securitization for the renewable energy industry, and is currently working on several new deals with institutional investors who want to invest in solar. ‘The solar asset class on the whole, if you can even call it that because it’s so small, is particularly interesting to investors because you have these long term yielding cash flows once the assets are already built, and you don’t have the risk of construction and anything that can go wrong there,’ said Cohen. He added that investment-grade solar debt yields range from 3.5% to 5%. While the market is small, he said there’s a renewed interest after SolarCity, with Elon Musk as chairman, issued solar bonds.
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