Home / Business and Economy / Chord Music Sells $500M Bonds Backed by Hits
Chord Music Sells $500M Bonds Backed by Hits
21 Apr
Summary
- Chord Music offers $500 million in bonds backed by artist royalties.
- The securities are tied to over 3,750 musical works.
- Streaming growth has boosted music royalty cashflows significantly.
Chord Music Partners is issuing $500 million in bonds backed by a substantial music catalog. These asset-backed securities are linked to royalties from a diverse range of artists, including Twenty One Pilots, Diplo, and Morgan Wallen.
The catalog encompasses over 3,750 musical works and is valued at approximately $830 million. This potential sale represents the first music royalty ABS offering of 2026, following a robust market in 2025 and 2024 where billions of dollars in similar securities were sold.
Recent years have seen increased investor interest in notes backed by music rights, spurred by the significant growth in streaming services. Streaming revenue has surged from $1.8 billion to $22 billion over the last decade, bolstering royalty cashflows and making music assets attractive for bond investments.
The issuance is being managed through Chord's vehicle, Canon Music Issuer Trust. The catalog's weighted average age is about 10 years, with a significant portion of music released over five years ago. The bonds are expected to receive an 'A' grade, with Apollo Global Securities and Atlas SP acting as active bookrunners.
