- published: 12 Jan 2016
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Bowie Bonds are asset-backed securities of current and future revenues of the 25 albums (287 songs) that David Bowie recorded before 1990.
Issued in 1997, the bonds were bought for US$55 million by the Prudential Insurance Company of America. The bonds paid an interest rate of 7.9% and had an average life of ten years, a higher rate of return than a 10-year Treasury note (at the time, 6.37%).Royalties from the 25 albums generated the cash flow that secured the bonds' interest payments. Prudential also received guarantees from Bowie's label, EMI Records, which had recently signed a $30m deal with Bowie.
By forfeiting ten years worth of royalties, David Bowie was able to receive a payment of US$55 million up front. Bowie used this income to buy songs owned by his former manager. Bowie's combined catalog of albums covered by this agreement sold more than 1 million copies annually at the time of the agreement.
The Bowie Bond issuance was perhaps the first instance of intellectual property rights securitization. The securitization of the collections of other artists, such as James Brown, Ashford & Simpson and the Isley Brothers, later followed. These Bonds are named Pullman Bonds after David Pullman, the banker who pushed the original Bowie deal.
David Bowie ( /ˈboʊ.i/ BOH-ee; born David Robert Jones on 8 January 1947) is an English musician, actor, record producer and arranger. A major figure for over four decades in the world of popular music, Bowie is widely regarded as an innovator, particularly for his work in the 1970s. He is known for his distinctive voice and the intellectual depth and eclecticism of his work.
Bowie first caught the eye and ear of the public in July 1969, when his song "Space Oddity" reached the top five of the UK Singles Chart. After a three-year period of experimentation he re-emerged in 1972 during the glam rock era with the flamboyant, androgynous alter ego Ziggy Stardust, spearheaded by the hit single "Starman" and the album The Rise and Fall of Ziggy Stardust and the Spiders from Mars. Bowie's impact at that time, as described by biographer David Buckley, "challenged the core belief of the rock music of its day" and "created perhaps the biggest cult in popular culture." The relatively short-lived Ziggy persona proved merely one facet of a career marked by continual reinvention, musical innovation and striking visual presentation.
"The Man" is a slang phrase that may refer to the government or to some other authority in a position of power. In addition to this derogatory connotation, it may also serve as a term of respect and praise.
The phrase "the Man is keeping me down" is commonly used to describe oppression. The phrase "stick it to the Man" encourages resistance to authority, and essentially means "fight back" or "resist", either openly or via sabotage.
The earliest recorded use[citation needed] of the term "the Man" in the American sense dates back to a letter written by a young Alexander Hamilton in September 1772, when he was 15. In a letter to his father James Hamilton, published in the Royal Dutch-American Gazette, he described the response of the Dutch governor of St. Croix to a hurricane that raked that island on August 31, 1772. "Our General has issued several very salutary and humane regulations and both in his publick and private measures, has shewn himself the Man." [dubious – discuss] In the Southern U.S. states, the phrase came to be applied to any man or any group in a position of authority, or to authority in the abstract. From about the 1950s the phrase was also an underworld code word for police, the warden of a prison or other law enforcement or penal authorities.