Receivables securitization is an instrument widely used in the financial market to anticipate the receipt of cash flows. To anticipate the receipt of this flow, the party holding the rights accesses investors to sell the rights at a discounted value, or raise funds by linking the payment of their funding to the payment of the flow. In both cases, the discount rate is linked to credit risk.
In 1997, David Bowie was one of the first people to anticipate receivables linked to intellectual property, which in this case was the author's own work. The singer raised the equivalent of U$ 55 MM, which corrected for inflation would be equivalent to around U$ 102 MM today. His operation served as a future example for other artists, including Brazilians.
