Return of exotic secutization?

From the WSJ Real Time Economics blog Appetite Grows for Exotic Asset-Backed Securities. The article mentions that securities backed by assets such as timber harvests, timeshare revenue and cellphone-tower leases are offering higher yields that auto or student loan backed securities. It does not mention IP backed securities however. But if the market is now interested in timber harvests, it might be receptive to IP as well.

2 thoughts on “Return of exotic secutization?”

  1. That is an interesting idea. I’m trying to think of some examples of IP backed securities. IP harvests seem analogous to timber harvests, as both are anticipated revenue far in the future. Fractional interests in the hoped-for future revenue stream could be sold presently at a discount to risk takers to provide money for the IP filings and development. An analogy would be certificates of participation used for equipment financing.


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