Ivy League debt well received amid increased scrutiny of investment policies; Howard Cure quoted in the Wall Street Journal

February 10, 2010

Investor reaction in Ivy League debt has been positive, despite increased scrutiny by regulators, because the Ivy Leagues have maintained high ratings, said Howard Cure, director of fixed income research for Evercore Wealth Management.

"Certainly, you don't want to see a long-term trend of borrowing, creating a long-term liability to cover an operating expense," said Cure said. But Ivies borrowing from the taxable market has been "viewed as a very unique situation."

The losses of Yale, Harvard, Princeton and other highly-regarded schools in the worldwide credit crisis credit crisis has forced them to borrow money, primarily from the taxable municipal market, the article said.

Accordingly, Ivy League college deals so far this year, including issues from Harvard, Princeton and now Yale, have primarily been in the tax-exempt market, where they've sought funding for necessary campus construction and renovation.