Moody's Considers Bowie Bond Clip

In light of the sales slump in the recording industry, Moody’s is considering lowering the A3 rating the $ 55 million in bonds backed by future music royalties from British rocker David Bowie currently command.     That’s  the seventh highest rating on Moody’s scale, according to a Reuters report.

Bowie, known for such hits as “Space Oddity” and “Fame”, became the first musician to sell bonds supported by future revenues generated from his record master and publishing rights in 1997 (see  David Bowie issues asset-backed securities ).   The sale of these asset-backed securities to private investors raised $55 million upfront for musician. Since the Bowie deal, musicians and songwriters like James Brown and the Isley Brothers issued similar bonds backed by expected future revenues from their music catalogs.