Analysis Finds That Howard University Is the Only HBCU That Is Tapping the Bond Market

American colleges and universities raise funds by issuing bonds. In the first half of the year, more than $27 billion was raised in this manner.

But, according to data compiled by Pensions & Investments, Howard University is the only historically Black college or university to tap the bond market. Howard raised $147 million earlier this year and recently announced plans for more than $200 million in debt.

The timing of Howard’s bond sale during a national reckoning on racial inequality may draw more demand and new buyers to the deal. The heightened focus on such issues may lure in more buyers than normal and help push down the interest rate that Howard has to pay, according to the report.

For lower-rated issuers, it costs more to borrow because investors require higher yields to make up for owning riskier bonds. Howard’s debt is rated just one step above junk bond status.

Related Articles

Leave a Reply

Get the JBHE Weekly Bulletin

Receive our weekly email newsletter delivered to your inbox

Latest News

Protests of a Different Color: HBCUs and the Student Protest Movements Against the War in the Middle East

Student protests concerning the Israel-Hamas war have been commonplace on the campuses of elite predominantly White colleges and universities. While not receiving a lot of publicity, HBCU students have not sat on the sidelines of the protest movement.

Higher Education Gifts or Grants of Interest to African Americans

Here is this week’s news of grants or gifts to historically Black colleges and universities or for programs of particular interest to African Americans in higher education.

Recent Books of Interest to African American Scholars

The Journal of Blacks in Higher Education regularly publishes a list of new books that may be of interest to our readers. The books included are on a wide variety of subjects and present many different points of view.

Online Articles That May Be of Interest to JBHE Readers

Each week, JBHE will provide links to online articles that may be of interest to our readers. Here are this week’s selections.

Featured Jobs