Winston & Strawn Sponsors ABS East 2024

Winston & Strawn’s Structured Finance Practice was a proud sponsor of the annual ABS East 2024 Conference in Miami, Florida.

ABS East unites 5000+ of the most engaged, active, and highly regarded structured finance professionals for three high-octane days of meetings, industry insight, and deal-making.

Partner Sean Kelly presented on the “Home Efficiency & Solar ABS” panel, which focused on current opportunities across the product spectrum including resi, C&I, DG, community, battery storage, and more. Find key takeaways from the panel below.

Key Takeaways

1. Solar ABS Growth: Solar ABS issuance is up 9% year-to-date, reaching $4.6 billion, driven by growing market acceptance and new participants entering the market. Many transactions have also been upgraded, reflecting the strong performance of the asset class.
2. Originator and Investor Flexibility: Strong solar asset performance allows originators to access funding through 144A and 4(a)(2) structures. While 144A has historically led, 4(a)(2) is growing, offering investors more flexibility and options.
3. Commercial Market Lagging: The commercial solar ABS sector remains behind residential, with 98% of financing still from banks. However, there is significant untapped growth potential as demand rises and more capital flows into the space.
4. Regulatory and Lending Practices: Hidden fees in solar loans are being addressed with better disclosure, leading to more transparent and fair transactions.
5. Optimistic 2025 Outlook: Despite challenges in 2024 due to high interest rates, 2025 is expected to bring growth with better rates and political clarity post-election boosting market activity.
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