Wealthy Wanting Cash for Investing, Margin Calls Turn to Art
- Lenders say some clients want to free up cash for investment
- Others are seeking to lower margin call risk, banker says
Last Monday, as oil prices dropped 30% and equities plummeted, a New York client of Fine Art Group requested financing against a $10 million painting by Jean-Michel Basquiat.
Days later, with equities tumbling to the largest single-day decline since 1987, a major London gallery called for fast capital to opportunistically buy a contemporary art collection. A Swiss client asked for a loan against $30 million worth of rare diamonds.