SFA Research Corner: Music Royalty ABS — Remastered for Streaming and Beyond

In 2022, three music royalty ABS transactions were issued for a total of $2.6 billion, according to Finsight, a significant increase over 2021 when one transaction for $304 million came to market. Music royalty ABS are backed by the rights to future income generated by publishing or recording royalties of music catalogs. Future securitization supply is supported by an increase in music sales, powered by the streaming-subscription model, and rising interest from proven artists to cash in their rights to future income streams. Risks unique to the industry notwithstanding, the alignment of inventory and investors could expand interest in this tuneful asset class. Read More.