A wide variety of securitised bonds
The assets used in securitisations vary enormously. Securitisation has even reached the world of rock. Iron Maiden issued a long-dated $30 million asset-backed bond securitised on future earnings from royalties.
It followed David Bowie's $55 million bond securitised on the income from his earlier albums. Tussauds has securitised ticket and merchandise sales, Keele University has securitised the rental income from student accommodation, and Arsenal Football Club has securitised £260 million future ticket sales at the Emirates Stadium. Loans to Hong Kong taxi drivers have been securitised, as have the cash flows from UK funeral fees. In the US, the Student Loan Marketing Association (Sallie Mae) is a publicly traded company which both provides student loans and buys them from other providers, then sells bonds collateralised (secured) on these loans.The securitisation desks of investment banks are nothing if not innovative. Recent ideas include securitising the cash flows from solar panel output and from rents on houses - see Article 15.1.
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