First of all, they need to understand the term "securitisation" -or bonds which are not backed by assets, but future revenue streams. The most popular form has been bonds that are backed by a pool of loans, but now financiers are playing with intellectual property.

Like many other sophisticated financing methods, this one originated in the US. It was reported that late last month Dunkin' Brands, owner of Dunkin' Donuts, raised US$1.7 billion (Bt65 billion) by selling bonds backed by, among other things, the royalties it will receive from its franchisees.

Similarly, in 1997, "Bowie Bonds" were issued, supported by the future sales of music by British rocker David Bowie. Bonds based on the films of DreamWorks, Marvel comic books and the stories of John Steinbeck have also been sold. Some restaurant chains and fashion firms issued bonds backed by logos and brands.

As reported by The Economist, the market has a lot of potential given that licensing patented technology generates $100 billion a year and involves thousands of companies.

Surely, raising money this way can make sense not only for private-equity firms, but also for companies with low or no credit ratings that cannot tap the capital markets. It's also good for companies with few tangible assets - for example, a land bank or huge deposits - to qualify for a bank loan.

Given the emergence of hundreds of thousands of small and medium-sized enterprises in Thailand, this method could become popular in the Kingdom as well. Now that many firms are avoiding raising funds on the stock exchange due to the gloomy outlook this should be a nice way out.

Think about an OTOP (One Tambon, One Product) brand called "Chiang Mai". Based on the number of the fact that one million tourists visit Chiang Mai every year, if 10 per cent of them end up buying OTOP products with an average spending of Bt200 each, that means the brand would reap Bt20 million per annum. If you believe that in the next five years revenue would stay the same or higher in line with the tourism industry in the province, Chiang Mai bonds become more than alluring.

Flower Food, the popular brand of roasted pumpkin and sunflower seeds, could have similar success, as could the Ban Rei coffee chain, which is opening outlets everywhere.

Still, omitted from the success story would be "iTV", given the gigantic size of penalties it has been threatened with. Too bad that a quarrel over concession fees might lead to the bankruptcy of the television station, which in my opinion is the best in terms of news reporting.

achara_d@nationgroup.com