Higher education bonds

Gyliane Morgan alleges the company retaliated against her in 2020 after she pointed to the firm's oversight failings — including not flagging defaults by borrowers — stemming from its role in a U.S. Department of Education program that helps finance campus projects, according to a wrongful termination lawsuit she filed March 27 in a New York federal court.

With a dearth of taxable muni supply and Build America Bond refundings, the university should see strong demand for this week's $500 million taxable corporate CUSIP bonds.

The bonds refunded of two earlier series of student fee bonds: the taxable Series Z-2 Build America Bonds, and the tax-exempt Series BB-1 bonds.

The state Supreme Court ruled that prevailing wage rules for public projects don't apply to private entities that borrow using tax-exempt conduit bonds.

Pittsburgh-based Robert Morris University was downgraded by Moody's Ratings. The private university is part of a growing list of smaller higher education institutions, particularly in the Northeast, that are facing increasing financial pressures as the pool of potential students shrinks.  

U of I's plans to issue debt ahead of the expiration of a non-binding agreement in May were challenged by a state high court decision to hear an appeal and an Idaho House of Representatives resolution.

Harvard and Princeton coming to market is a "huge sign of confidence," said Clare Pickering, a Barclays strategist.

Large deals were repriced to lower yields while the secondary market was lightly traded, leading to little changed triple-A yield curves and underperformance to Treasury market gains. Despite a growing calendar, the supply demand imbalance remains with much cash on the sidelines.

The rating agency cited the university's structural budget imbalance and management turnover among factors that drove the outlook revision to negative from stable.

A power struggle over the governance of the Oklahoma Turnpike Authority and a Houston mayor ending a legal dispute with firefighters that could improve the city's Fitch rating are among the legal stories bond market professionals are watching.

Some public colleges in the Midwest are facing budgetary squeezes paired with programming directives from state legislators, a departure from trends elsewhere.

Moody's Investors Service placed the university under review for downgrade, citing in part debt that would be issued to purchase the University of Phoenix.

Nearly half of America's private colleges and universities reported negative operating margins in fiscal year 2023, and the trend was even worse in the Midwest.

The Education Finance Council is seeking clarification on bond rules related to student loans.

With its cash balance eroding due to a budget imbalance, the university, under the watchful eye of Arizona's governor, will undergo system-wide changes.

Moody's Investors Service cited thinning operating performance for the downward outlook revision.

Lake Erie College entered into a forbearance agreement with bondholders after the school didn't meet certain covenants it agreed to as part of a debt sale. 

Gov. Katie Hobbs' proposed fiscal 2025 budget calls for agency fund sweeps, a new eligibility requirement for a costlier-than-expected universal school voucher program, and other measures to combat a rising shortfall.

The negative outlook on the Phoenix-based university's Ba1 rating is due in part to its battle with federal regulators, including the U.S. Department of Education, which it sued in 2021.

The Arizona Board of Regents adopted a report recommending greater oversight of its three universities after the University of Arizona hit financial trouble.