The Rich Can’t Sell Their Art, So They’re Borrowing Against It

A wealthy client at Bank of America Corp. put up his fine-art collection so he could borrow enough to buy a sports franchise. Another posted his cache of 19th century American landscapes to renovate his estate.

Such is the burgeoning world of art lending — where pieces are used to secure loans, allowing their affluent owners to tap their collections for cash without having to part with prized possessions. Art sales have slowed, forcing many to reevaluate their options. The major May New York auction season fell about 23% by value from the prior year, with the world’s richest waiting on the sidelines to buy.