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Zero-coupon Eltons, 5 1/4 Frankies
(MONEY Magazine) – When Prudential Insurance bought $55 million in bonds in 1996 backed by David Bowie's recording sales, "Get a Piece of the Rock" took on new meaning. In six months, mutual fund managers, but not individual investors, could be scooping up investment-grade bonds from other entertainment luminaries whose work throws off steady royalties. Though mum's the word on who's lined up for a Wall Street debut, Elton John, Frank Sinatra and Lionel Ritchie are the kind of celebrities that Prudential Securities says it's looking for in its new venture with music magnate Charles Koppelman. The team will securitize royalties from songs, books and even video games. --Sarah Rose |
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