"Stress in the Residential Market" - Major Lender Exits
The residential security / 'alarm' market is getting worse, at least for traditional players. Now, one of the biggest lenders in the industry has quietly exited.
In this note, we examine the exit, what is going wrong in the market and how it might get worse.
Exit ** ******* ******* ****
******* ******* **** *** ****** *** security ******* ********. *** ******* (********* referred ** ***************, *********** * ********** ******* *******) *** *** ** the ******* ******* ** *** **** decade ** ******** ********* ******* ****$*** ******* ********* ** *** **** in ******$** ******* **** ** ******* ** May ******* **** ***** *** **$** ******* ******* ** ******** ***** in ******* ****.
***** ******** ******* ***** *** *** by**** ********** ********* ********* ** ******** ****** including ***** ********* ******* ** ******* ****.
"Stress ** *** *********** ******"
**********, ** ******* ***********, ******* *******'************* *** * ********** ****** ** *** *********** ******, shown *****:
**** *********** ************** *************** ****** * ******* ******* ** debt *** **********/********* ** **** ** new ***********. ***** *** ***** **** not ******* ******, ****** ** **********, by ****, ** ** ****** ***** that **** ***** ** ********* *** having ** ********** ******.
Lenders ********* ****** **********
**** ***** ** **** ******** ******* are ****** ********** ** *** ******, according ** ***** ***** ** *** lenders. **** ** ***, *********, ** isolated ****** ** *** **** *** reflecting ******* ******** ** *** ***********.
Vicious ***** ****
** *** ****** **** ******* **** lending ** ***** *** **** ** lending, **** ***** ******** *** ************ for *********** *********** ***** *********. *** less **** ********* *** *** ****** its *****, *** ****** ** ** for *********** ********* ** **** *** even, *** ****, *******.
Economics *********, *** *** ******'* *****
*******, **** ** * ******* ** the ********* ** *** *********** *********** model, *** *** ******'* ******* ** the ********. *** ***** *** ****** reflecting *** ******* ** ******** *********** dynamics. ** *** ***** ********* ***** call ****, *** ****** ******** ***** and ***** ******* ****** **** *** traditional ***** * **** ********* ********, which ********** **** ******** ******** ** valuations (*** *** *********, ***.).
Fleeing ** **********
******** ** *** ****** *** ** the ****** ** **********, **** ************ *********** ******* ********* are ********* / ******** **** **** commercial (*.*., ********.*** / ******* ******** **** *****).
***** *** ********** ****** ** ********* far **** ******** ** ***, *** historical *** ********** *******, ****** **** RMR *******, ******** ** **** *********** attractive **** *** ************ *****. ** the ***** ****, **** ** *** traditional *********** ********* *** ***** **** extinction ** ********** ** **** ******** solely ** ****-****** *********** ******* ******* DIY.
Simplisafe ***** **** '*******'
*** ******** ******* ** *** ******'* exit, *** *********, *******,********** ******** * *** ********* ************** ******** *********** *********** ********* ** robbing ********'* *****, ** *** ***** excerpt ***** *****:
Outlook *****
***** ** ***** ******* ****** ****** the *********** *********** ****** **** *******, especially *** ******-*** ***********, ****-****** *********** is ****** ****** ******** ********. **** ADT *** ****** ******* ******** ********** as ***** **** ********* ****** *** challenge **** ** *** **** ** an **** / *************** *** **** sustain ** *** ********* *** *** also ************ ******* *** ***** *** smart **** *********.
Vote / Poll
* ***** **'* *** **** ** just ***** "**********" ********* ** **** name *** ***** $$$
** ** *** ** ***** ** the ****, *'* ******** **** **** a ***, *** **** *** *** what ****/****** *** ** **. ****'** seemingly ********* ********** ** ***, *** its *** **** ** ******* **** slithering ***** *** **** **** ******* also - *** ** **** **, well, **'* ******** **** **** *** a ***** ** ******* ******* (****** too *****, ** *** *** **** mountains ** ****).
**** *** ******* *** **** *** for ********* ***** **** ******* ** over **% **** ** *** ***.
#*, ****** *** *******. * ***** that *** *** *** *** **** able ** ***** ** ****. **'** been * *** ******* *** ********* / ***** ****** *** ** *** hoping ** *** **** ******* ** this. ****** *****!
* **** **** ***** **** ******** is ******* *** ** *** **** deals *****. *** ** ******** *********** customers ** **** ******* ****, *** is *** ******* *** ** *** commercial *****.
**** *** **********, **** **** * have *****, *** *** ******** ** move **** **** ********* ***** ***** though.
********* ** ****** * ***** **, CapitalSource *** ~$**** *** *****, *** the ***** **** * ********** *******. If *** ** ***** ******* ********* customers **** ** ***** ***** *** any ****** (***** ** *** ******* uncommon), **** *** ****** **** *****, as ************* ** ***** ** ** unlikely ** **** ** ****** *****, offering **** *********, ***. **** ****** those ********* ******* ** **** * new ****, **** ******* *******, *** then ****** ********** ********* ** ***** existing ****, ****** *** *********** ******** that ***** ********* *********** ***** **** much **** *********.
* ***** ****** **** ******* ** lead ** ******* ********* *** **********, and ******** **** ***** ** *&* activity ** **** ***** **** **** as **** ************* *** ****** ** sell ** **** ***'* **** *** capital **** **** ** *** ********** required.
* ******** ** *** *** ****** could **** ******** ** ****? *** anyone *** *** * ****, ******* you ***** **** ** ** ***, on **** ******* ** ******** ** the *********** *****? ***** **** ** you **** *** ******.
**** **** *****… “**** ** *** future ** *********** *********** ******** *********”?
** *******…. **** *** ****** ** they ***’* ******* *** ******* ** the ******. *** ****** ****** ** a ********** ***********, *********. *** *** trend **** ****** **-**-***-**. *** ** the ********** ** *********** *********** ****** is ************* *** ** ** ******** without *** ***** ****** ** ***** silent *******. **** ********** **** ** learning *** **** ******…. ********** **** not *** ***** ****** ********** **********, and *** ******* ***** ***** *** monitoring ********, *** *** ******* *** not ******-*******. **** ***-**** ********** *** license ** *** ** *** *** traditional *****-***** *******…. **** ********** ** just ******* ******** ******** **** * big *********** ****** *** **** ** puffery. **** ** *********** ** ******** IPO.
******: *** *****; ******* ******** *****
** ** **** ********** ** ****. It **** **** ** ******* **** to *******. **** ***** **** **** a ******* **** *** (** ***** is ***) ************ (** ***** ***** any) **** **** **** ** *** market.
** *** ******** ***** ** **** it ** ********* ** ** ******* experience *** *********.
***! *** ***** **** ** ** 107%! * ***** **** ** *** us ***** ****....