Investment Term For The Day - Bowie Bond
Sep 15, 2021 ·
3m 4s
A Bowie bond was a unique type of asset-backed security which used as collateral for the royalty streams from current (at the time) and future album sales and live performances...
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A Bowie bond was a unique type of asset-backed security which used as collateral for the royalty streams from current (at the time) and future album sales and live performances by musician David Bowie.
Bowie bonds are also sometimes known as Pullman bonds after David Pullman, the banker who created and sold the first Bowie bonds.
Bowie bonds were first issued in 1997 when David Bowie partnered with Prudential Insurance Company and raised $55 million by promising investors income generated by his back catalogue of 25 albums.
Bowie bonds were a type of bond backed by recording artist David Bowie's royalty streams and marked the first such security backed by a performer's cash flow potential.
Bowie used the $55 million raised from the issuance to buy rights to his music from his former manager, which would then, in turn, generate more royalties to bondholders.
The banker credited with making this happen, David Pullman, has since issued similar securities from other performing artists.
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Bowie bonds are also sometimes known as Pullman bonds after David Pullman, the banker who created and sold the first Bowie bonds.
Bowie bonds were first issued in 1997 when David Bowie partnered with Prudential Insurance Company and raised $55 million by promising investors income generated by his back catalogue of 25 albums.
Bowie bonds were a type of bond backed by recording artist David Bowie's royalty streams and marked the first such security backed by a performer's cash flow potential.
Bowie used the $55 million raised from the issuance to buy rights to his music from his former manager, which would then, in turn, generate more royalties to bondholders.
The banker credited with making this happen, David Pullman, has since issued similar securities from other performing artists.
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