Bowie bonds are a type of bond that were created based on the rights to the albums that David Bowie made before 1990. These bonds were utilized in order to provide David Bowie with a cash payment in return for the rights to his albums.

The Origin of Bowie Bonds

These bonds were originally issued in 1997 in a deal with the Prudential Insurance Company. The insurance company gave David Bowie an upfront payment of $55 million in return for the rights to the 25 albums that he owned prior to 1990. The bonds provided the insurance company with a rate of return of 7.9 percent. The money to make the bond payments was generated from the royalties that were associated with the 25 albums that David Bowie created. 

This was the first type of bond of this kind. This type of bond was secured with intellectual property rights. Since that time, more music artists have used this type of bond to generate a lump sum payment. These bonds are now referred to as Pullman bonds because David Pullman was the banker that was in charge of setting up the David Bowie bonds. As music artists become more popular and develop catalogs, they can think about using these bonds. 

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