This week Sotheby’s Financial Services (SFS) announced that it had priced a $900 million securitization backed by loans secured against artworks and, for the first time, collectible cars, according to the company. The deal is scheduled to close on February 3 and is expected to receive top-tier credit ratings from Morningstar DBRS, Sotheby’s said. In simple terms, the transaction bundles hundreds of loans made to collectors, using artworks and luxury vehicles as collateral, and sells the right to collect those future loan payments as bonds to institutional investors. Those investors receive regular payments as borrowers repay their loans, while Sotheby’s gets cash up front that it can use to make new loans. Related Articles This is the second issuance under a securitization program Sotheby’s launched in 2024, when it priced roughly $700 million in bonds backed exclusively by art-secured loan. That earlier deal was notable for pushing art lending into the same kinds of financial markets long used for mortgages, car loans, and other consumer debt. The new issuance builds on that foundation, both in size and scope. The addition …