From star man to Spider-Man - The growth of intellectual property ABS

Securitising intellectual property has come a long way since David Bowie issued bonds backed by his royalties. As a growing number of companies recognise the value of assets such as brands, copyrights and patents, there are some attractive opportunities for investors willing to do the risk analysis, writes Dalia Fahmy

It's rare that a rock star starts a trend in bond securitisation. But when David Bowie issued $55 million in 'Bowie bonds' backed by the royalties from the sale of his songs seven years ago, he did just that. Asset-backed securities (ABS) collateralised by intellectual property, whether that property is a song library, a portfolio of drug patents or a fashion brand, have been gradually growing since 1997. An estimated $10-15 billion in deals have been sold in the US to date, at a