The Rise of Music-Backed Securities: A New Frontier in Investment

September 8 2025 | Music-backed securities, often referred to as "Bowie bonds," have transitioned from niche investments to mainstream financial instruments. These bonds, named after David Bowie's pioneering 1997 deal raising $55 million against future royalties, have surged in popularity. In 2025 alone, over $4.4 billion has been raised through music-backed securities, up from $3.3 billion in 2024 and just $300 million in 2021. Institutional investors like Blackstone, Carlyle, and Michigan's state pension fund are securitizing music catalogs from artists such as Justin Bieber, Lady Gaga, and The Beatles. These assets are increasingly rated by major credit rating agencies, signaling broader market acceptance. The boom is fueled by strong legal protections for music copyrights and the industry's predictable revenue streams. Compared to similarly rated corporate bonds, music-backed securities offer higher yields, drawing capital from investors seeking diversification and greater returns. The resurgence of music royalty securitization has been further bolstered by the rise of streaming platforms and enhanced data transparency. Since 2020, over $8 billion in cumulative issuance has been recorded, with prominent deals such as Concord’s $1.8 billion A+-rated bond and Hipgnosis’ $1.47 billion catalog securitization. As the market continues to mature, investors are encouraged to stay informed about the evolving landscape of music-backed securities and consider their potential role in diversified investment portfolios.

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