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Speaker 1: Broadcasting live to New York, Bloomber to Washington, d C,

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Speaker 1: bloom to Boston, BLUEMBERG twelve to San Francisco, Bloomberg nine

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Speaker 1: to the countries General one, and around the globe the

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Speaker 1: Blueberg Radio Plus app and Bloomberg dot Com. This is

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Speaker 1: taking stock, coming up how to make money in this

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Speaker 1: solar industry, but lending money to those that want to

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Speaker 1: put solar panels on their roofs. For example, right now,

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Speaker 1: Solar a growing number of customers are choosing to buy

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Speaker 1: their systems through loan contracts at declining cost of solar,

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Speaker 1: along with established reliability simply makes the loans a better

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Speaker 1: option in most cases. We'll be speaking with Dan Rosen.

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Speaker 1: He is the co founder and the president of Solar Mosaic.

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Speaker 1: Right now, let's go to Charlie Pellett in the Bloomberg

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Speaker 1: news room for Bloomberg Business Flat and I thank you

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Speaker 1: pim Fox. We're looking at a down day here, just

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Speaker 1: about twenty nine minutes to go ahead of the close.

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Speaker 1: And this update brought to you by National Realty Providers

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Speaker 1: of one hundred percent satisfaction guaranteed New York City Realty Investments.

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Speaker 1: See them at n R i A dot net stocks

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Speaker 1: are lower, equities are valued at the highest in seven years.

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Speaker 1: That is raising concern that gains will be hard to extend.

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Speaker 1: Those companies wrap up a fifth straight quarter of earnings declines.

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Speaker 1: We've got the SMP five hundred indext down three points

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Speaker 1: now to one seventy nine, a drop there of two

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Speaker 1: tents up one percent. Down, industrials down twenty six points,

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Speaker 1: a drop of one tenth of one percent, and naz

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Speaker 1: stack is down twelve a drop of two tenths up

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Speaker 1: one percent, the tenure of one thirty second that yield

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Speaker 1: one point five eight percent, Gold down to sixty ounce

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Speaker 1: to thirteen thirty six to drop there of two tens,

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Speaker 1: up one percent, and crude oil up two and a

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Speaker 1: half percent, up a dollar six of barrel two eighty

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Speaker 1: five on West Texas intermedia rude. Many on wall streets

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Speaker 1: still digesting Friday's jobs report and what it means for

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Speaker 1: interest rate policy. Bob Sinch's Global strategist that amorous pierpont securities,

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Speaker 1: he says, do not rule out September. I think the

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Speaker 1: Fed would really like to get interest rates higher. Um

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Speaker 1: they're just afraid of getting from here or there and Uh,

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Speaker 1: I'm wondering whether they actually might be more inclined to

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Speaker 1: go in September, because you know, they keep wanting to

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Speaker 1: hike rates and then they get a bad piece of

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Speaker 1: information and they back away. Southby is rallying the most

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Speaker 1: in more than four years. Second quarter profit up. Shares

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Speaker 1: of Southby's up thirteen point five percent, three thirty two

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Speaker 1: on Wall Street. Now, let's look at other news from

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Speaker 1: around the world. Thank you, Charlie from the Bloomberg News room.

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Speaker 1: I'm Rainy in a cent cio. This news update is

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Speaker 1: brought to you by Time Warner Cable Business Class. If

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Speaker 1: your business relies on the phone company, you may be

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Speaker 1: getting less than you deserve. Make the switch to more speed,

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Speaker 1: more value, and more savings. Visit business dot t WC

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Speaker 1: dot com slash more. Donald Trump says his economic plan

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Speaker 1: is a return to what he calls america first governing.

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Speaker 1: In the speech today to the Detroit Economic Club, Trump,

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Speaker 1: who has interrupted numerous times by protesters, said the Obama

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Speaker 1: Clinton economic agenda has failed and that current and proposed

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Speaker 1: trade deals have harmed America. As with taxes. I will

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Speaker 1: have one overriding goal when it comes to regulation. I

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Speaker 1: want jobs. And I want wealth to stay in America.

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Speaker 1: Hillary Clinton will make an address on the economy Thursday.

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Speaker 1: Dissatisfied Republicans now have an alternative to Donald Trump. Conservative

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Speaker 1: Evan McMullen is running for president. He's a CIA veteran

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Speaker 1: and former Chief Policy director of the House of Representatives.

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Speaker 1: He tells ABC News quote, I humbly offer myself as

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Speaker 1: a leader who can give millions of disaffected Americans a

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Speaker 1: conservative choice for president. And A registered sex offender is

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Speaker 1: charged in the stabbing death of a thirty year old

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Speaker 1: man near the Staten Island ferry terminal in Staten Island.

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Speaker 1: Forty nine year old Leonard Evans was a rained yesterday

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Speaker 1: on murder and related offenses. State record show he served

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Speaker 1: three separate prison stin since for robbery, sexual abuse and

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Speaker 1: drug sales. Global News twenty four hours a day, powered

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Speaker 1: by more than twenty journalists and analysts in more than

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Speaker 1: one d twenty countries. I'm rainy in Essensio. This is Bloomberg, Charlie,

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Speaker 1: and we thank you and again. Recapping stocks are trading

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Speaker 1: law SMP five hundred index down three to seventy nine,

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Speaker 1: a drop there of two tens of one percent. I'm

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Speaker 1: Charlie Pelton. That's a Bloomberg business flash. You're listening to

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Speaker 1: taking stock with bim Box and Kathleen Hayes on Bloomberg Radio.

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Speaker 1: Using the sun to produce electricity, No, that's not new,

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Speaker 1: but lending money for the systems to do so, that

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Speaker 1: is an innovation. And here to tell us more about

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Speaker 1: it is Dan Rose and he is the co founder

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Speaker 1: and the president of Mosaic Solar Mosaic. They can be

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Speaker 1: followed on Twitter at Solar Mosaic and Dan joins us

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Speaker 1: from San Francisco. Dan, thanks very much for being with

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Speaker 1: me today. Can you just, first of all, UH define

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Speaker 1: the sort of areas in which you operate, because you've

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Speaker 1: got the modules those are the panels that are most

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Speaker 1: widely viewed on homes, home roofs or on installations. But

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Speaker 1: then you've got the whole system, the back end storage

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Speaker 1: and making that electricity available. Tell us how that works

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Speaker 1: into the world of mosaic. Sure, good afternoon, Thanks and

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Speaker 1: thanks for having me. So if you think about uh

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Speaker 1: the uh you know, how someone goes solar A lot

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Speaker 1: of people have thought about it in the past, UH

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Speaker 1: as being sort of a technology question, which is exactly

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Speaker 1: what you said about panel, the inverterers and battery UM.

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Speaker 1: Now that a lot of that technology UM is very

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Speaker 1: proven and you know, we have panel that are still

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Speaker 1: working thirty years later that we're installed in the in

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Speaker 1: the in the in the eighties and seventies. Uh. You know,

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Speaker 1: really the big challenge is, UH, that there's an upprom costs.

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Speaker 1: Our average loan size is about thirty dollars, and so

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Speaker 1: what most is we lend money to people who are

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Speaker 1: buying those solar systems. So we finance UM the whole

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Speaker 1: solar system UM, and the loan product is structure, and

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Speaker 1: we try to help customers save money every month so

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Speaker 1: they when they go solar UM, they're not only saving um,

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Speaker 1: you know, carbon and doing good for the environment and

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Speaker 1: improving their their home value, but actually every month we're

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Speaker 1: hoping that they save money. Can you give us some

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Speaker 1: figures for a two bedroom house, how much would it

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Speaker 1: cost to do the installation? Tell us about financing costs

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Speaker 1: as well, which so UM, every house is different and UH,

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Speaker 1: and you know every system is different in different states

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Speaker 1: as well. And you know solar UH the resources are

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Speaker 1: different in different areas. But on average, our average system

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Speaker 1: size is about thirty thousand bucks. And I think you

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Speaker 1: see that as low as ten and you see systems

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Speaker 1: that are very um you know, as high as we

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Speaker 1: are alone go up to a hundred thousands. So it

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Speaker 1: really depends on the on the system um our, our

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Speaker 1: loan products range and pricing and tenor um you know,

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Speaker 1: everything from to nine nine all the way up to

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Speaker 1: six nine nine and um in terms of interest rate. Okay,

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Speaker 1: so just under three to just under yeah, depending on

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Speaker 1: you know, the credit profile and the risk of the

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Speaker 1: of the customer. What about the collateral, that's a that's

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Speaker 1: an important question. So what Mosaic does is we do

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Speaker 1: not take a second position on the home. We take

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Speaker 1: just a lean on the system. So we're able to

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Speaker 1: turn off the system or get the system if someone

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Speaker 1: doesn't doesn't pay. But you know, usually people understand that

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Speaker 1: the system is creating value for them. Um, it's increasing

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Speaker 1: the value of their home, it's helping them save monthly.

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Speaker 1: So we have a very uh, very small uh for

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Speaker 1: for the for the as the class that it is.

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Speaker 1: It's it's incredible how small our levels of the false

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Speaker 1: are be because we're creating, we're creating so much value

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Speaker 1: for the customers, how many loans? How much? How much

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Speaker 1: in dollar terms have you have you generated in loans?

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Speaker 1: Were not? I apologize to avoid the question of we're

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Speaker 1: not yet public about about those numbers. But where we

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Speaker 1: are now I think the largest lender in home solar

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Speaker 1: loans in the in the US. All right, but we

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Speaker 1: can disclose what that You've recently raised two and twenty

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Speaker 1: million dollars in funding. Yes, we raised a growth round

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Speaker 1: from Warburg Pinkis, which is an incredible team and private

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Speaker 1: equity firm that that sees the opportunity and sees us

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Speaker 1: going uh and see the growth path of this company. Now,

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Speaker 1: this money is not to be used to make loans,

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Speaker 1: correct um. We're we're able to opportunistically use it how

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Speaker 1: how we see fit. Um. Some of it will go

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Speaker 1: into loan funding in terms of the different structures that

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Speaker 1: we're that we're putting together, but as also will be

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Speaker 1: used for operating capital and and and growing the business.

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Speaker 1: So um, it's not it will be used for both

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Speaker 1: loan funding and for UH and for operating capital. But

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Speaker 1: in short, we uh, you know, with the amount of

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Speaker 1: capital and lending that we're doing, we need to increase

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Speaker 1: the really strength in our balance sheet. And Warburg came

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Speaker 1: in with the two million dollar investment and and uh

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Speaker 1: and and helped us do so. And this makes it

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Speaker 1: easier for us to access the capital market. Where where

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Speaker 1: you get access where are you accessing the money to

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Speaker 1: make the loans currently? Currently we have um different working

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Speaker 1: capital facilities with different banks, off takes facilities with insurance

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Speaker 1: companies and also banks, and we're working on our Also

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Speaker 1: we're working on securitization. So we're working on the first

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Speaker 1: solar solely solar loans securitization UM. So that'll be exciting

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Speaker 1: and so that and so those the goals accompanies at

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Speaker 1: this point is to raise, you know, to be able

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Speaker 1: to act as um as much capital as possible for

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Speaker 1: for the business because we just see so much growth

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Speaker 1: in front of us. Thanks very much. Dan Rosen is

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Speaker 1: the co founder and the president of Mosaic. You can

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Speaker 1: follow them on Twitter at Solar Mosaic. They're based in

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Speaker 1: San Francisco. I'm Kim Fox. This is Bloomberg coming up

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Speaker 1: on taking Stockron Sanchez, chief investment Officer Fiduciary Trust, helping

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Speaker 1: to manage more than seventy four billion dollars. What should

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Speaker 1: you do with your money. We'll find out