Guaranteed to the Max

Lee Rosenbaum reports that Sotheby's is nearing $475 million in outstanding guarantees to consignors --- "just $25 million shy of its 'outstanding auction guarantee limit' of $500 million, which was set by its board earlier this month." In the comments to this post at Artworld Salon, Alexandra Peers says there's evidence that consignors "are asking for guarantees more often instead of simple cash advances or loans in advance of a sale. Advances and loans against property are down from a year ago." In the same comments, Greg Allen talks about "the extent to which the auction houses mitigate their exposure on guarantees by enlisting third-party investors in the guarantee process."