Elite college backlash to pressure billions of debt

The pullback of major donors, a potential loss of the tax-exempt status, declines in applications and management upheaval may impact university finances and endowments, Bloomberg's Levington said. — Bloomberg

NEW YORK: Fleeing donors and leadership shakeups at elite US colleges like Harvard University and the University of Pennsylvania are elevating risks for tens of billions of highly-rated debt, according to Bloomberg Intelligence.

Bloomberg Intelligence strategists Joel Levington and Michael Doto are warning bond investors and credit ratings companies to consider rethinking their “laissez-faire” attitude toward university debt after a Congressional antisemitism probe and other scandals have upended campuses, according to a research note.