3 ms·
Universities can and they do: https://public.com/bonds/screener?issuerSymbol=PDFHV https://public.com/bonds/screener?issuerSymbol=PDFHV The yield on ~20 year
by rahimnathwani 2y ago
Universities can and they do:
https://public.com/bonds/screener?issuerSymbol=PDFHV https://public.com/bonds/screener?issuerSymbol=PDFHV
The yield on ~20 year Harvard bonds seems to be about one percentage point higher than the yield on 20 year treasuries.
- vonmoltke 2y agoThose are standard, unsecured bonds. They're not loans against anything in the endowment.
- rahimnathwani 2y agoRight, and the endowment already uses leverage, so many of the endowment's assets will already serve as security for loans.
- vonmoltke 2y agoSure, but that's margin trading. These bonds have nothing to do with the endowment.
- rahimnathwani 2y agoYeah, sorry I didn't make it clear enough that I was agreeing with you. The endowment's assets are likely mostly/all pledged as security for margin trading, in which case there may be few/no assets left which could serve as collateral for borrowing that will fund payouts.