Higher Education Institutions Issue Bonds to Offset Endowment Losses
January 15, 2009
Major colleges and universities are taking on debt by issuing bonds to raise money after their endowments have seen significant declines in value in recent months, reports Bloomberg News.
Among those leading such efforts are Princeton University, which sold $1-billion in bonds this week, and Harvard University, which raised $1.5-billion with a bond issuance last month, the news agency reports. Harvard saw a 22-percent drop in its endowment in the first four months of its 2008-9 fiscal year, while Princeton’s fell 11 percent in the same period.
