Since they were originally issued, the Bowie Bonds have gone through ch-ch-ch-ch-changes:
When music icon David Bowie in 1997 introduced an unusual marriage between the rock scene and Wall Street, it was first billed as an innovative union.
The rock ‘n’ roll legend issued bonds backed by future revenue of the 25 albums he had recorded before 1990, paying a generous 7.9% interest rate over 10 years. The bond issue earned Bowie $55 million, which he used to buy back songs owned by his former manager.
Maybe a good idea on paper, but in March 2004, Moody’s Investors Service cut the Bowie Bonds to just one notch above junk. A spokesperson from the ratings agency … said the downgrade “was prompted by lower than expected revenues generated by the assets due to weakness in sales for recorded music,” according to The Telegraph.
The rating on the bonds may have changed, but some things will always remain the same.
Classic albums are — by definition — forever classic.
So let’s reaffirm the rating…
David Bowie — Hunky Dory
Progarchist Rating: ★★★★★