Funding corporates with high expenditures for reseach and development and an asset
side that is hence characterized by a high portion of intangible assets is one of the
most challenging disciplines in corporate finance. Due to the still existing lack of
pragmatic and sophisticated evaluation methods for intellectual property, these corporates
dependence on bank lending does not seem to end in the nearer term.
Starting with the Bowie Bonds in 1997, securitization of intellectual property as a potential
funding alternative appeared on the scene. Capital market investors now have
the opportunity...