Goldman Wary of Solar ABS Despite Wide Yields: Structured Weekly

Investors are getting much juicier yields for holding solar asset-backed securities versus other types of ABS debt, but the sector still isn’t attractive enough to pile into, according to Goldman Sachs Group Inc., as delinquency and default rates remain elevated.

Newly-issued solar ABS deals that are rated A have averaged around 230 basis points over comparable benchmarks this year, much higher than A rated home improvement deals — the closest comparable peer sector — which have averaged 155 basis points, strategists Arun Manohar, Ben Shumway and Neth Karunamuni wrote on June 18.

Despite this, the bulge-bracket bank has ...