An article published in the Economist, focused on art-secured lending, featured a quote from Rachel Pownall.
The article explored the phenomenon of art-secured lending which in the past decade has garnered significant interest as it enables collectors to leverage their art collection, making art, typically a very illiquid asset, much more liquid.
Art secured loans come both from established private banks such as Bank of America Private Bank or specialised lenders such as Athena. Rachel Pownall commented on limited nature of specialised lenders as much of the art that would be accepted as collateral, works typically worth $2million by well-known artists, are in the hands of the super-rich clients of private banks.
For the moment, the overwhelming majority of art-backed loans take place in America, it will therefore be interesting to see how the market evolves in Europe.