created a new type of security as an individual and it was called the 'Bowie Bond'.
This was an innovation in the Financial market
s a few years ago. It turns out that Mr Bowie needed money (for what ever reason). But instead of going to the bank and asking for a loan, he created a new type of security
where people would buy bond
s that were/are secured against his future stream of royalties.
He was able to convince the financial markets that people would always want to buy his records, and on the strength of that he securitised his future stream of revenue
s into a bond and sold it as an individual in the securities market.
A specific, $55 million issue of 10-year Asset-Backed Bonds that British rock star David Bowie issued and Prudential Insurance Co. bought. The specific collateral consists of royalties from 25 of Mr. Bowie's albums that he recorded before 1990.
Source: Bloomberg News, 2/20/97