In addition to getting money upfront, artists additionally retain ownership of their work and do not have to pay tax on what the IRS considers a loan, since yet

In addition to getting money upfront, artists additionally retain ownership of their work and do not have to pay tax on what the IRS considers a loan, since yet-to-be received royalties are re-characterized by the bond agreement as loan interest and principal payments. Similar tax advantages present themselves to those who borrow money using stocks as collateral. Borrowing against a stock portfolio is nothing new. Margin loans have been around for a long time. But securities-based loans offered by Morgan Stanley, Bank of America, and other large wealth managers aren't margin loans. The proceeds aren't supposed to be used to buy more investments. Marketing materials commonly suggest using a securities-based loan to buy a vacation home, or cover retirement expenses, without needing to sell your investments. https://www.fool.com/investing/2017/11/19/wall-streets-hottest-loan-product-borrowing-agains.aspx https://www.fool.com/investing/2017/11/19/wall-streets-hotte...