Colleges' Debt Is Fed by Rising Bond Rates. (cover story)

UNIVERSITY & college finance; BOND prices; INTEREST rates; PRICES of securities; BANKING industry -- Social aspects; DEBT management; MANAGEMENT

The article discusses the relationship between the bond market and colleges and universities. The author states that interest rates in the United States variable-rate bond market have seen dramatic increases and are impacting institutions who are financing their debt with the bonds. The author states that many universities are looking to restructure their debt with more fixed-rate securities. The author also states that banks may not be quick to lend to the institutions due to stricter practices in the lending market.