Universities Join Century-Bond Boom After Rates Tumble Worldwide
- Rutgers University following University of Virginia’s sale
- ‘We thought this would make great business sense,’ one says
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American universities, used to taking the long view of history, seem to see the current era of rock-bottom interest rates as one that may not come around again for another century.
Rutgers University in New Jersey this week is planning to sell $330 million of bonds that don’t mature for 100-years, joining a small but growing number of schools that are seeking to lock in current borrowing costs by issuing unusually long-dated debt. It’s following the University of Virginia, the college founded by Thomas Jefferson that last week sold 100-year bonds for a yield of 3.23%.