SolarCity to offer asset-backed securities to mom and pop investors
— By Kirsten Korosec on January 16, 2014, 11:42 AM PST
The only way it could be "less risky" is if it were possible to identify and quantify the quality of the underlying assets. As always, transparency is the problem. Otherwise, the investor is just taking the word of the seller.
"How securitization works
Securitization is when a bunch of assets are pooled and bundled together, then sliced up and sold into capital markets."
Following and adding to your comment, I think everyone is well aware of how securitization works, and probably got a little (or a lot) burned from the financial collapse and global recession from 2007 onwards. I don't think Mom and Pop investors will be fooled by this, as with most things, if there was any real safe money to be made it would not make it to the public's purse.
Who would be identifying and providing the quality and transparency on the 'product' - ratings agencies, finance houses - yeah, I don't think people will be suckered by you self-aggrandizing money grubbing conmen this time.