Headlines: Low Interest Rates Driving High Interest In Music Investments

  in Industry News

Sep 21, 2020

Interest rates show no signs of improving for yield-seeking investors, but music royalties are gaining traction (and perhaps a beneficial court ruling).

Streaming Music Deemed 'Essential' By Consumers During Covid-19 (Hypebot)

Music intellectual property is asset secured, and creates an approximately one hundred year annuity. We think of it as a AAA rated like bond with a 6-10% annual coupon payment, and a 10% to 20% internal rate of return to maturity with the terminal value. 

Interest Rates To Stay Lower For Longer (Fidelity International)

You would have had to be pretty uninterested in your investments not to have noticed by now that generating a decent income (to pay for your retirement, say) is getting harder and harder. Pockets of yield do still exist, in bonds and property, for example. But they tend to come with higher risks or worse liquidity.

Dispute over US IP Rights Distribution Fund Becomes Class Action (Complete Music Update)

The lawsuit being pursued by songwriter and record producer Kevin Risto over the distribution of equitable remuneration monies to session musicians in the US has been granted class action status. It means at least 30,000 musicians could benefit.

Betting on Music (Rock N' Roll Globe)

Financial types are always looking for yield, and even if the cash flow decreased as the songs aged, the fact that the asset would continue to throw off money regardless of how stocks and other securities performed made it a non-correlated asset, which is always valued on Wall Street.