KBRA Releases Research – Playback: Issuance, Industry, and Performance Trends in Music ABS

NEW YORK--(BUSINESS WIRE)--KBRA releases research on performance and trends of the music ABS sector.

The music royalties ABS sector has continued to expand in recent years, supported by strong investor demand for recurring cash flows and the growing institutionalization of music rights. KBRA has assigned 81 ratings on music royalty ABS across 18 issuers since 2020, totaling approximately $12.9 billion in issuance.

• KBRA-rated music ABS issuance exceeded $3.3 billion in both 2024 and 2025. KBRA expects issuance to decline approximately 25% in 2026 to slightly more than $2.5 billion, primarily because of continued issuer consolidation. Industry consolidation may have mixed implications for music ABS, potentially improving collateral diversification and servicing scale while reducing issuance activity if acquired catalogs migrate to investment-grade platforms.
• The sector includes 18 unique issuers as of 2026, up from nine in 2023, providing a stronger foundation for long-term sector stability.
• Since the beginning of 2025, four KBRA-rated music royalty ABS transactions have involved issuer acquisitions, manager transitions, or publicly reported potential acquisitions, representing the highest level of such activity since the asset class reemerged in 2020.
• Although annual issuance volumes have remained somewhat volatile, the sector has demonstrated increasing consistency as a broader issuer base has reduced reliance on a small number of repeat issuers and supported a steadier transaction pipeline.
• Debt service coverage ratios (DSCR) across KBRA-rated music ABS transactions have remained relatively stable, although pockets of underperformance highlight certain transaction- and catalog-specific risks. On average, DSCRs across the sector have trended lower, primarily because of refinancing terms and lower DSCRs at issuance.
• Across the 81 ratings KBRA has assigned in this asset class, ratings have generally remained stable. KBRA expects continued rating stability across the sector.

Click here to view the report.

Related Publications

• Music Royalty ABS: The Beat Goes On
• Sound Check: Music ABS Performance
• Track Split: Differentiating Publishing and Recording Income
• Watching the Clock: ARDs and Refinancings in Whole Business Securitizations
• B2B Fiber Spans the Spectrum

About KBRA

KBRA, one of the major credit rating agencies, is registered in the U.S., EU, and the UK. KBRA is recognized as a Qualified Rating Agency in Taiwan, and is also a Designated Rating Organization for structured finance ratings in Canada. As a full-service credit rating agency, investors can use KBRA ratings for regulatory capital purposes in multiple jurisdictions.

Doc ID: 1014952