– “Margin Calls, Death, Divorce & Bankruptcy”: Art Lending Market Booms As Rich Americans Scour For Liquidity:
“If you’re an owner and need liquidity now, you pause on selling and instead borrow against your art, waiting for better market conditions,” Adriano Picinati di Torcello, global art and finance coordinator for Deloitte, told Bloomberg, adding that’s sparked growth across the art-lending market.
A rising number of affluent Americans with fine art collections have called their wealth advisors, asking about creative ways to unlock liquidity while keeping the multi-million-dollar Andy Warhol painting on the living room wall – for family and friends to appreciate over a glass of wine.
With art sales slowing and valuations sliding after decades of outperformance, wealth advisors are telling clients to reevaluate their options instead of sending the art to the Sotheby’s auction block.
ew data from Bloomberg shows the global art market has cooled significantly in a high-interest-rate environment. From its peak in mid-2021, the Fine Arts Index has slid 32%. In fact, the index has been levitating at a ceiling since 2011, following the run-up after the Dot Com bust.
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