Zero Interest Rates Beget Burger Bonds (Whole Business Securitization)

The crazy world of negative interest rates (and ultra-low US interest rates) are leading to a new craze in the  world of securitization: the whole business bond!

burger backed bonds

As rates keep tumbling down.

globalyields

Franchised companies like burger restaurant Jack in the Box Inc. and massage provider Massage Envy are increasingly selling unusual bonds backed by most of their businesses. So rather than a B-rated tranches of loans, companies like Jack in the Box can now securitize EVERYTHING.

jackinthebox_teriyakibowls

Investors are fishing for yields.

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