Music Bonds

Charles Koppelman, former chairman, EMI Capitol Music group, has started a company that plans to lend money to entertainers in exchange for rights to their future earnings. His partner, Prudential Securities, will provide a $200 million line of credit. Prudential will then bundle several of these deals to sell to investors in the hope that those who couldnt make it in a rock band would prefer rock bonds. Koppelmans new financing method would give them money and allow them to hold onto ownership. It gives them the ability to cash in without cashing out, Koppelman said.