Tuesday, April 14, 2020

Harvard to Sell $1.1 Billion in Bonds

Harvard University

Harvard University has announced it is going to sell up to $1.1 billion in bonds in order to take advantage of current low interest rates resulting from the coronavirus panic, Bloomberg reports.

The university will sell $573 million in revenue bonds through a state agency to refinance existing debt, and $500 million in taxable bonds for “eligible corporate purposes.”

Harvard has a $40.9 billion endowment as of June 2019. so it is not like they need the money. It is an opportunistic move.

If you are a businessman or otherwise need to borrow, do as Harvard is doing and borrow now long-term and lock in these current very low, very attractive interest rates. They are not going to last.

Refinancing, be it a mortgage or some other debt, also makes sense to be done now for most.

Just make sure all borrowing is at a fixed rate.


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