Investors may slowly be coming back around to some kinds of residential solar ABS, if the latest offering by public residential solar energy provider Sunrun is any indication.
The firm’s second deal of the year, the $293m Sunrun Quintus Issuer 2026-2, saw its senior tranche price at 200bps over the I-Curve Tuesday (4 August), a 20-bp improvement over the top class in its April transaction and a 40-bp improvement over that tranche in its last securitization of 2025.
The senior tranche got an A- rating from KBRA, in line with those in previous deals, while the $26m subordinate tranche, rated BB-, was withheld, according to Sunrun. The deal is collateralized by 37,600 leases and power-purchase agreements.
Source: Sunrun
The spreads were tight enough for Brian Lee, analyst at Goldman Sachs, to applaud Sunrun yesterday (5 August) on its Q2 earnings call.
“Congrats on that 200 basis point spread,” he said. “I think that's the tightest we've seen in maybe a year-and-a-half or so, maybe even longer.”
The tightening comes after a period of inclement weather for the solar industry caused by unfavorable state and federal regulations, according to consulting company Wood Mackenzie. That translated into more...
