## The Sound of Fixed Income

Why did Bruce Springsteen sell the rights to his entire life's work for $500 Million to a Wall Street firm? Because music is no longer art; it is an alternative asset class.

### FAQ

**Q: Why do hedge funds buy the publishing rights to 40-year-old songs?**
A: Low-Correlation Yield. A Private Equity firm looks at the song "Born in the U.S.A." the same way they look at a skyscraper. Every time the song is played on a random radio station in Germany, or streamed on a treadmill in Japan, or used in a Toyota commercial, a micro-penny of royalties is generated. Because millions of people listen to the exact same classic rock songs every year like clockwork, the cash flow is highly predictable. More importantly, people don't stop listening to music during an economic recession. Wall Street buys these catalogs at massive "Multiples" (e.g., 20x annual earnings) because it acts exactly like a Corporate Bond that pays a 5% dividend, except its revenue organically grows over time as streaming platforms expand into countries like India and Africa.