The flagship product of the second half of the 2010s, the art secured loan, has been increasingly beleaguered since the start of the year, raising questions about the present and future of an opaque market.
In April, YieldStreet, a digital finance management platform for alternative investments, bought Athena Art Finance just for the book value of its loan portfolio. The transaction cast a chill over the art secured lending sector, considered a few years ago as the major trend in art as a financial asset. At the beginning of the year, other companies offering this type of service – like Borro – simply stopped accepting works as loan collateral. So what has happened to the art loan goose that laid the golden eggs?
One Trend Drives Out Another Every ten years, a new product enters the finance sector dedicated to art. The 2000s saw the reappearance of funds, presented as the ultimate investment vehicle in this field… but a few years later, it turned out that investors weren't very patient when their "collections" weren't hanging on a wall, and this type of fund very…
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