– dv01 acts as Loan Data Agent on CLMTE pass-through certificates backed by loans originated on the GoodLeap platform
– Investors to benefit from easy access to cleansed, validated, standardized data rolled up for monthly reporting
– Announcement comes as dv01 builds first ESG analytics framework for structured products
dv01, a leading capital markets fintech company driving technological innovation and loan-level transparency in structured finance, announced it has partnered with GoodLeap, America’s number one point-of-sale platform for sustainable home solutions, to further promote data transparency and accountability within the solar asset-backed securities (“ABS”) market.
Through this partnership dv01 will serve as Loan Data Agent (“LDA”) for Carbon Level Mitigation Trust (CLMTE) pass-through certificates, the first transactions of their kind in the residential solar and sustainable home solutions space. The shelf currently comprises CLMTE 2021-1 and CLMTE 2021-2 and has an aggregate notional value of $53.6 million at issuance across 1,252 residential solar loans. As LDA, dv01 handles the monthly deal reporting by cleansing, validating, and standardizing loan-level data from underlying servicers and other transaction participants. Qualified platform users, including participating investors, can then leverage fully integrated analytics tools through the dv01 web app to extract actionable insights on loan performance, free of charge.
Read More: GoCardless and Piano Partner to Help Publishers and Brands Drive Recurring Revenue
Residential solar ABS has shown impressive resilience against the stresses of COVID-19. Kroll Bond Rating Agency estimates that issuance climbed 22% YoY in 2020, with GoodLeap responsible for most of the issuance. Kroll forecasts 2021 issuance to increase by another 21% thanks to a combination of technology improvements, extensions of the investment tax credit, and a sympathetic presidential administration.
“As investor demand for sustainable investing increases, transparent data on the underlying collateral is crucial to understanding asset performance,” said Perry Rahbar, Founder & CEO at dv01. “We’re excited to partner with a leading issuer to cement solar as a viable, investment-worthy asset class. We look forward to deepening our relationship with GoodLeap and introducing our reputable loan-level expertise to a rapidly-growing market.”
Read More: AmCom Insurance Services, Inc. Selects Input 1 Payments As Their Digital Payment Gateway Provider
“The pass-through securities announced today are the first transactions of their kind in our space, enabling an even broader group of financial institutions to deploy capital in compelling ESG assets,” said Tanguy Serra, GoodLeap’s President. “With dv01, we look forward to providing market participants the opportunity to take part in these ESG assets with confidence and efficiency.”
The partnership comes at a time when ESG investing is seeing a record pace of adoption. In addition to supporting the Solar ABS market, dv01 is building a comprehensive, data-focused solution for structured products that empowers issuers and investors to accurately report the loan-level ESG adherence needed by their partners and the capital markets.
