Posted on 02/28/2024 11:46:38 AM PST by SeekAndFind
The systemic institutional antisemitism exposed by Rep. Elise Stefanik’s grilling of former Harvard President Gay is turning out to be a catastrophe for the oldest and formerly most prestigious university in the United States. The backlash of donors withholding funds appears to have created a cash flow crisis, forcing the university into the bond market at a time when interest rates are five times higher than the last time it issued bonds – to cover building projects -- in 2022. Kudos to Sidney K. Lee and Thomas J. Mete of the student-run Harvard Crimson for breaking this important story:
Harvard announced it is exploring a $1.65 billion bonds sale in an attempt to raise capital through debt financing despite poor macroeconomic conditions, a move that comes after the University faced months of donor backlash.
The potential ten-figure bond sale, revealed in a University filing on Monday, would see Harvard’s debt reach $7.85 billion — higher than any point in recent history, including during the 2008 financial crisis.
The planned sale, which would be spearheaded by Goldman Sachs & Co. and Barclays Capital Inc., is unprecedented given its magnitude — even for an institution of Harvard’s size — but remains within the normal guidelines of financial management for corporations with annual revenues that exceed $5 billion.
A University spokesperson declined to comment on the filing.
The article reveals some very interesting data highlighting the significance of this move. It states that Harvard relies on philanthropy for 45% of its annual revenue, which means that an unanticipated falloff in donations could significantly diminish cash flow from the levels anticipated in financial forecasts prepared before the public reckoning and resulting donor reaction.
Yes, Harvard is rich, with an endowment in the neighborhood of $50 billion, but much of this wealth is committed to investments
(Excerpt) Read more at americanthinker.com ...
Their endowment is over $50 billion…
Selah
RE: Their endowment is over $50 billion…
TAX FREE !!
Harvard really should just go out of business.
It will be the best for everyone.
Hence the meme: Harvard is now a hedge fund with day care.
Asset rich, cash poor is my guess.
I think it’s indicative of what’s on the horizon economically.
Same reason Blackrock left all ESG BS.
They see what’s coming.
If a university takes a $50 million gift that was supposed to be used to establish and fund a new department, and use it instead to pay lucrative salaries to administrators, then the donor's legal representatives will have no trouble clawing that money back.
Do you honestly believe Harvard is strapped for cash?
Their endowment hedge-fund can buy the University's debt. What's the bond coupon?
Our oligarchy is full of Harvard grads. Fake news.
Harvard now has the respectability of the Biden family. May the flies of a thousand camels come to rest on their Obamastuff.
Why don’t they just charge their students and extra $10k a year. Biden will write if off anyway.
Correct - the old saw of “Well, if you need money, just sell some of the assets” having often been bad advice in the past (along the lines of ‘don’t eat the seed corn, idiot’) now has the giant added problem of the fact that under current economic conditions there’s nobody that can or will buy them and it is only going to get worse. Know someone in Australia who’s the heir to a huge fortune on paper - but it’s all tied up in real estate that cannot be sold and right now is not generating a lot of income due to economic and other (post-COVID) reasons. Lots of fun with their minimal cash flow at the current time.
Also, Blackrock is now having to make money instead of having enough to throw away - they are *hideously* exposed in the slow-motion Chinese real estate crash right now.
harvard is so rich it defies imagination
but any fiscal pinch from our having quit donating to their filthy-evil anti-Christian/anti-Jewish hate-mongering training camp is a step forward for justice in America
meanwhile,FUHU!! hey, it rhymes too...hopefully it will catch on as a new buzz-word and go viral! smiles smiles
Liberal institutions never have enough of other people's money to spend. They should be giving free tuition to all of their students.
I don’t think Harvard is broke, but I would not be surprised if it has a cash flow problem.
https://nypost.com/2020/05/02/jeffrey-epstein-had-office-at-harvard-after-2008-conviction/
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