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Posted: Tue Mar 29, 2016 6:11 am

bethlehempardView user's profile






Joined: 28 Sep 2011
Posts: 2136







Consider Muhlenberg College, an excellent small school. It depends on student tuition and fees for 88 percent of operating revenue. They have an A1 from Moody's, A+ from S&P.
Muhlenberg's endowment is about $250 million. About 20 percent of that is in hedge funds which seems high.
Lafayette depends less on student revenue because of gifts and the endowment. I can't find a number right now but it was around 70 percent to 75 percent.

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Posted: Tue Mar 29, 2016 9:34 am

BPardView user's profile






Joined: 23 Sep 2014
Posts: 208







Thanks. So does "non-operating" mean the $26 million loss does, or does not, take into account the draw from the endowment to fund operating expenses?

The endowment has lagged its benchmark for the past 6 years. I'm interested to see if the new Chief Investment Officer has changed anything but I can't find a current endowment report for FY15.

If the Ivies reported an annual return of 7.8% on average with a low of 3.4% and we posted a ~3% loss, was that because of our chosen investment mix or ????

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Posted: Tue Mar 29, 2016 11:49 am

LafalumView user's profile






Joined: 06 Mar 2007
Posts: 3916







BPard wrote:
Thanks. So does "non-operating" mean the $26 million loss does, or does not, take into account the draw from the endowment to fund operating expenses?

The endowment has lagged its benchmark for the past 6 years. I'm interested to see if the new Chief Investment Officer has changed anything but I can't find a current endowment report for FY15.

If the Ivies reported an annual return of 7.8% on average with a low of 3.4% and we posted a ~3% loss, was that because of our chosen investment mix or ????


It does not include the draw as I see it ,in the auditors report. We should note, at one time the college's investment portfolio was 60 pct in "alternative" investments. Since the arrival of the new CIO he has cut that back considerably but it is still heavy. ( Larger than Muhlenburg's 20 pct by a lot) The exit could account for the losses. Before this CIO took over it was managed by an alumnus ( who by the way was WELL compensated).

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Posted: Tue Mar 29, 2016 1:12 pm

BPardView user's profile






Joined: 23 Sep 2014
Posts: 208







Lafalum wrote:
It does not include the draw as I see it ,in the auditors report. We should note, at one time the college's investment portfolio was 60 pct in "alternative" investments. Since the arrival of the new CIO he has cut that back considerably but it is still heavy. ( Larger than Muhlenburg's 20 pct by a lot) The exit could account for the losses. Before this CIO took over it was managed by an alumnus ( who by the way was WELL compensated).

Thanks for the explanation. I thought it was only 7% PE and 18% in the newfangled "absolute return" class.

The marketing terms finance guys come up with is great. "Opportunistic fixed income." Way to sex that up guys (and let's be honest, it is a safe bet that it was a guy who thought to put "opportunistic" in front of fixed income to charge 1% of assets more than vanilla fixed income to get their pound of flesh; and it will be guys who pay those other guys the extra 1% for "opportunistic").

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Posted: Tue Mar 29, 2016 3:05 pm

LafalumView user's profile






Joined: 06 Mar 2007
Posts: 3916







BPard wrote:
Lafalum wrote:
It does not include the draw as I see it ,in the auditors report. We should note, at one time the college's investment portfolio was 60 pct in "alternative" investments. Since the arrival of the new CIO he has cut that back considerably but it is still heavy. ( Larger than Muhlenburg's 20 pct by a lot) The exit could account for the losses. Before this CIO took over it was managed by an alumnus ( who by the way was WELL compensated).

Thanks for the explanation. I thought it was only 7% PE and 18% in the newfangled "absolute return" class.

The marketing terms finance guys come up with is great. "Opportunistic fixed income." Way to sex that up guys (and let's be honest, it is a safe bet that it was a guy who thought to put "opportunistic" in front of fixed income to charge 1% of assets more than vanilla fixed income to get their pound of flesh; and it will be guys who pay those other guys the extra 1% for "opportunistic").


You got that right along with taking 3 months to year to get out and as high as 3 pct to get in plus 20 pct of the income ( if there is any).

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Posted: Tue Mar 29, 2016 4:16 pm

bethlehempardView user's profile






Joined: 28 Sep 2011
Posts: 2136







Wall Street is all about the churn.
Those seven words sum it up.
New names, new products, new pitches, new "paradigms."
It's sort of like what somebody once said about the Kama Sutra:
Position 78 is much like Position 74, but with your fingers crossed.
That's a fair description of financial instruments.
I'm not saying the Street is evil. It's just what it is.

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Posted: Thu Mar 31, 2016 8:50 am

bethlehempardView user's profile






Joined: 28 Sep 2011
Posts: 2136







S&P assigned an A to Fordham's $150 million of debt. Most of the money is for refunding. Stable outlook.  
The report is standard and positive, including "solid enrollment growth" but notes "a very weak matriculation rate."

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Posted: Tue Apr 05, 2016 12:29 pm

bethlehempardView user's profile






Joined: 28 Sep 2011
Posts: 2136







Dartmouth, Moody's Aa1, has 6,300 f-t students and $5.9 billion in cash and investments. That's enough, the ratings agency notes, to cover more than 6.5 years of operating expenses.

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Posted: Wed Apr 13, 2016 6:49 am

bethlehempardView user's profile






Joined: 28 Sep 2011
Posts: 2136







Moody's raised the NCAA's outlook to stable and kept the Aa2 on $28 million of rated debt. Operating revenue, $958 million, more than 3/4 from one event (must be the NCAA BB tournament though not noted).
The debt is an unsecured GO. Litigation risks are noted.
The NCAA sells debt through the Indiana Finance Authority.

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Posted: Thu Apr 14, 2016 5:05 am

bethlehempardView user's profile






Joined: 28 Sep 2011
Posts: 2136







Lafayette has early plans for as much as $100 million in debt for 2017, S&P said. AA- was affirmed on earlier issues. Generally a good report.
"Exceptional cash and investments compared with debt outstanding."
Any new debt will of course lead to review.

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Posted: Mon Apr 25, 2016 9:18 am

bethlehempardView user's profile






Joined: 28 Sep 2011
Posts: 2136







S&P raised Georgetown to A from A- last week. Outlook stable.

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Posted: Tue May 31, 2016 11:46 am

bethlehempardView user's profile






Joined: 28 Sep 2011
Posts: 2136







LaSalle got a negative outlook from S&P, BBB affirmed.
"Operating performance will be pressured as a result of declining enrollment" S&P said. Headcount down 9.3 percent for fall 2015. 90 percent of revenue from tuition and student fees. The discount rate has been increasing.

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Posted: Tue May 31, 2016 12:40 pm

NewXboView user's profile






Joined: 03 Feb 2014
Posts: 815







bethlehempard wrote:
LaSalle got a negative outlook from S&P, BBB affirmed.
"Operating performance will be pressured as a result of declining enrollment" S&P said. Headcount down 9.3 percent for fall 2015. 90 percent of revenue from tuition and student fees. The discount rate has been increasing.


Will this encourage more athletes to leave or not enroll at LaSalle? Do you see us getting any impact players?
_________________
Social Media - A toxic crucible of negativity

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Posted: Tue May 31, 2016 12:46 pm

LafalumView user's profile






Joined: 06 Mar 2007
Posts: 3916







NewXbo wrote:
bethlehempard wrote:
LaSalle got a negative outlook from S&P, BBB affirmed.
"Operating performance will be pressured as a result of declining enrollment" S&P said. Headcount down 9.3 percent for fall 2015. 90 percent of revenue from tuition and student fees. The discount rate has been increasing.


Will this encourage more athletes to leave or not enroll at LaSalle? Do you see us getting any impact players?


Nope...they won't care

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Posted: Tue May 31, 2016 1:44 pm

bethlehempardView user's profile






Joined: 28 Sep 2011
Posts: 2136







LaSalle's disastrous attempt to field a football team at the FCS level might well serve to dissuade other schools from trying.
I'd be wary of any school within three notches of junk and at 85 percent and up on reliance on student fees.
Most schools turn out fine but when things go bad they can go bad fast. It rarely happens but one misjudged class and trouble lurks. Lafayette has done very well in this regard.

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Posted: Wed Jul 20, 2016 12:11 pm

bethlehempardView user's profile






Joined: 28 Sep 2011
Posts: 2136







Yale: AAA from S&P affirmed. Endowment of $25.5 billion, expendable resources of $22.9 billion, equal to 6.6 times annual operating expenses, 6.5 times debt.
The negatives are, lots of swaps and bullet maturities, and a lot of non-marketable investments (presumably in lockups) and, liabilities in the endowment. Still the expendable resources figure is in the stratosphere.
$3.5 billion in debt, A-1 on CP and variable rates.
Any downside within two years is "unlikely."

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Posted: Thu Sep 22, 2016 5:18 pm

bethlehempardView user's profile






Joined: 28 Sep 2011
Posts: 2136







Lehigh got Aa2 from Moody's last week on two planned sales of as much as $185 million in debt, taxable and non-taxable. Fixed rates. The sales were held a couple days ago, I haven't seen the yields.
The report is good, though it cites high leverage as capital spending increases and a relatively high dependence on student fees compared to peers.
Out today, Penn's endowment dropped 1.4 percent over the fiscal year. There are multiple moving pieces in these reports but several declines have been reported so far.

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Posted: Fri Sep 23, 2016 9:53 am

Pards RuleView user's profile






Joined: 02 Apr 2007
Posts: 1902


Location: Cherry Hill, NJ





bethlehempard wrote:
Wall Street is all about the churn.
Those seven words sum it up.
New names, new products, new pitches, new "paradigms."
It's sort of like what somebody once said about the Kama Sutra:
Position 78 is much like Position 74, but with your fingers crossed.
That's a fair description of financial instruments.
I'm not saying the Street is evil. It's just what it is.


Boom! There it is!

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Posted: Fri Sep 23, 2016 9:54 am

Pards RuleView user's profile






Joined: 02 Apr 2007
Posts: 1902


Location: Cherry Hill, NJ





Lafalum wrote:
NewXbo wrote:
bethlehempard wrote:
LaSalle got a negative outlook from S&P, BBB affirmed.
"Operating performance will be pressured as a result of declining enrollment" S&P said. Headcount down 9.3 percent for fall 2015. 90 percent of revenue from tuition and student fees. The discount rate has been increasing.


Will this encourage more athletes to leave or not enroll at LaSalle? Do you see us getting any impact players?


Nope...they won't care


Can you imagine a recruit asking "Coach, whats the most recent bond rating of Lafayette?"

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Posted: Fri Sep 23, 2016 12:16 pm

bethlehempardView user's profile






Joined: 28 Sep 2011
Posts: 2136







Can you imagine a recruit asking "Coach, whats the most recent bond rating of Lafayette?"[/quote]

Sign him up! Now!

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