Monday, January 4, 2010

Cambridge to Issue Bonds to Raise Funds

Via Elizabeth Pfeuti of WSJ, comes news that Cambridge is planning to issue bonds to finance infrastructure projects. The offering is tiny - $200-300 million. This is probably a first for the UK, but is commonplace in the US, where university bond offerings are in billions of dollars.
The 'other place' is doing the right thing, although there are doubts about timing because of the glut of university paper on the market as a result of the debilitating knock that US university endowments have taken in recent years.
Oxford's finances are also not where they need to be to compete with US universities. Following Cambridge (it hurts to say this) might be the way forward.