Monday, October 31, 2011

Art & finance: the rise of "art loans" for the well-heeled clients of private banks

NEW YORK. Bloomberg recently reported that former hedge-fund manager Michael Steinhardt secured a "very cheap" loan from JPMorgan Chase Bank by pledging a number of the works in his fine art collection (estimated to be worth over $200 million) as collateral. While the use of art as collateral to obtain finance has been on the rise for some time now (Steinhardt joins the ranks of other managers such as Nelson Peltz and Steven A. Cohen), it is hardly indicative of a widespread trend in the banking sector towards lending against art. While it is true that art assets have flared quite way in the economic downtown and consecrated their place as an alternative form of investment, this is largely true of mostly "blue chip" works i.e., the Picassos, Pollocks, Warhols etc. that form part of the fine art collections of a handful of high-net-worth individuals. For the most part, investing in art is risky and expensive (transaction costs are too often overlooked) and my mantra remains that people should buy art because they love it, not in the expectation of hefty returns. Still, it's interesting to see that a growing number of banks are offering their "well-heeled" clients the possibility of structuring loans in this way. It makes perfect sense because the kind of art we're talking about in these cases really is "a stable form of collateral," as Suzanne Gyorgy of Citi Private Bank describes it. "When you look at our client base," Gyorgy goes on to say, "it's savvy business people that for the most part are using the liquidity from the art loan to invest back in their businesses."

37 comments:

  1. I was looking for the same from past many days, Glad to read this blog post

    ReplyDelete
  2. Financial loan is high quality, however; it's essential that you take plenty of a chance to look at all of your alternatives and properly determine which financial mortgage is the one that's right for you. By considering all of the alternatives that you have available and evaluating the functions and prices of different financial mortgage provides against each other, you should quickly be able to discover the mortgage that best meets your needs while remaining within your funds.

    ReplyDelete
  3. The material and aggregation is excellent and telltale as comfortably.
    payday loan

    ReplyDelete
  4. I guess I haven’t read such unique material anywhere else online.
    home page

    ReplyDelete
  5. Your blogs and every separate material are so remarkable and lucrative it makes me come back most again.
    loan directory sg

    ReplyDelete
  6. I would but say to you all "impressive information"
    www.ineedcashloan.com

    ReplyDelete
  7. I sent your articles links to all my contacts and they all love it including me.
    freecreditreport

    ReplyDelete
  8. The deep you dig into the subject and give us the accurate data is appreciable.

    cashloansquickly.com

    ReplyDelete
  9. You posting are wonderful and informative.
    unsecured loans online

    ReplyDelete
  10. I don’t think many of websites provide this type of information.

    ReplyDelete
  11. You have finished a surprising job with you website.
    loan website

    ReplyDelete
  12. This is a great blog post. Thank you very much for the fantastic insight and we really appreciate the time you took to write this Neopet Paint Brushes | http://www.topmovietrailers.co.uk

    ReplyDelete
  13. Interesting information I haven’t been through such information in a long time.
    Reclaim PPI

    ReplyDelete
  14. This is indeed a good news to everyone especially to artists.

    ReplyDelete
  15. This is a very interesting article. Thank you! I am looking forward to seeing more stuff like this! house improvement uk

    ReplyDelete
  16. What a super web site! to much info and a very short existence hehehehe continue to keep it up, good deliver the results. www.montanacarlo.com

    ReplyDelete
  17. I am really impress with your article and youhave done good work on your blog i feel i have to do work like this if i want to succes my blog too. Low Calorie Recipes

    ReplyDelete
  18. That's awesome! I've been cat-and-mouse for that back forever! Thanks a lot for it! www.womens-health-guide.com

    ReplyDelete
  19. Informative and interesting which we share with you so i think so it is very useful and knowledgeable. I would like to thank you for the efforts. I am tiring the same best work from me in the future as well. new-travel-trends.com

    ReplyDelete
  20. the theme of the site is really good and reflecting the scene in true sense. I like it! jewelry fashion

    ReplyDelete
  21. My acquaintance accredit your site and I appreciate it, it acceptable and altered with beginning online autograph . forextrading4earnprofit.com

    ReplyDelete
  22. Well, the commodity is in fact the sweetest affair on this accompanying issue. I fit in with your abstracts and will thirstily attending advanced to your accessible updates. www.free-gambling-casino.com

    ReplyDelete
  23. I enjoy you because of every one of your effort on this site. My mum enjoys setting aside time for internet research and its easy to understand why.

    ReplyDelete
  24. Excellent job done and nice informative blog posted.

    ReplyDelete
  25. This post is informative for me and all other readers.Click here

    ReplyDelete
  26. Hi,
    I am very thankful too you for this sharing..It is very useful for my writing project I get enough information for my writing..!!!
    Essay Writing || Custom Essay Writing

    ReplyDelete
  27. I am very thankful too you for this sharing..It is very useful for my writing project I get enough information for my writing..

    Custom Dissertation Writing Services | Dissertation Writing

    ReplyDelete
  28. Hats off man....! I am really obliged for your work on this topic. http://www.safeinstalled.co.uk

    ReplyDelete
  29. Absolutely fantastic topic! Great blog. Thanks for taking the time and writing this.
    Logo Designing

    ReplyDelete
  30. Good stuff. It is interesting to read comments.

    ReplyDelete
  31. Actually it gives the information that I was really searching for the past week and I am really satisfied with this post. Need more like this. Thank you.
    Online Shopping in Karachi

    ReplyDelete
  32. Wonderful blog post. That is what I was searching for. I really like your blog and I appericiate your efforts. Your article is very helpful for me and many others to work out. I will definitely come back on your site for more stuff. Good Luck for the future posts.
    Miller

    ReplyDelete
  33. Very nice blog to read and to get inform i like it very much and impressed from it you know that you are so beautiful about your work so keep it up.
    Buy Coursework Online

    ReplyDelete
  34. Congratulations on a job well achieved. I am anticipating your next.
    Horror movies

    ReplyDelete
  35. Very interesting Post, looking forward to reading more from you

    ReplyDelete