Core Insights - Bank of America is launching an art consulting service aimed at wealthy clients, responding to increased demand for art as collateral for loans [1] - Deloitte estimates that ultra-high net worth clients held approximately $2.56 trillion in art in 2024, with projections reaching $3.5 trillion by 2030 [1] - The demand for art-based loans has risen, with around 70% of wealth managers reporting increased interest, generating $2.3 billion in revenue [1] Group 1 - The new art consulting service will assist clients in selecting art that aligns with their tastes while considering potential value appreciation [1] - The service is a response to changing tastes and the emergence of new collectors, including heirs and new investors [1] - Art is increasingly viewed as property that can be used as collateral rather than a traditional asset class within investment portfolios [1] Group 2 - Bank of America possesses one of the largest art-based credit portfolios, allowing clients to leverage their art collections without needing to sell them for liquidity [1] - The art consulting initiative is part of a broader trend in the art market, which is experiencing significant changes and new long-term trends [1]

A year ago, we brought you the story of the business of art. We called it "Investing in your passions." But a year later, we're seeing some of the challenges and losses that can come with those passionate investments. -Remember, these pieces of work or these assets, if you want to call them that, they don't produce an income.They don't have a coupon associated with them. The only income that you get is the appreciation. Westin: Kraus is chairman and CEO of Aperture Investors and has spent a career in financ ...