Music Royalties & IP Rights
Technical reference for music catalog financing, royalty securitization structures, streaming economics, and IP fund mechanics.
Structured Finance Mechanics
Cash flow waterfalls, SPV structures, and securitization mechanics for royalty-backed financing.
Waterfall Priority
Sequential distribution mechanics in music royalty securitizations—from senior debt to equity.
Cash Flow Diversion
How coverage test failures redirect cash flows in royalty-backed structures.
True Sale
Legal mechanics ensuring bankruptcy remoteness when selling catalog rights to SPVs.
Cayman SPV Structures
Why music royalty funds use offshore SPVs—tax efficiency and bankruptcy remoteness.
Credit & Default Risk
Default mechanics, covenant structures, and credit risk in royalty-backed financing.
Event of Default
Default triggers in royalty financing—streaming threshold breaches, payment failures.
Covenant Breaches
How minimum streaming threshold violations and royalty coverage tests trigger defaults.
Subordination Analysis
Tranche structures in music catalog securitizations—senior notes vs equity.
Valuation & Market Risk
NAV financing, forced selling dynamics, and liquidity vs credit risk in music funds.
NAV Facilities
Credit lines secured by music fund NAV—catalog valuations and margin call mechanics.
Forced Seller Dynamics
How redemption pressures and margin calls force catalog sales at distressed valuations.
Liquidity Risk vs Credit Risk
Distinguishing temporary catalog price dislocations from fundamental streaming deterioration.
Music-Specific Terms (Coming Soon)
Additional reference terms specific to music royalties and IP rights are in development:
- • Streaming Royalty Mechanics (Spotify, Apple Music)
- • Music Catalog Valuation Methodologies
- • Sync Rights & Licensing Structures
- • Performance Rights Organizations (PROs)
- • Master Rights vs Publishing Rights
- • Catalog Securitization Structures (Bowie Bonds)