Baylor passes financial inspection with flying colors
I didn’t learn much in my high school economics class, and I never took economics at Baylor. But I was impressed to read last week that Baylor had gotten such positive feedback from the investment community when the University refinanced its long-term bonds.
In order to do so, some outside funding agencies — groups like Standard and Poor’s and Fitch — had to come in and peek under Baylor’s hood, looking at the University’s finances, the vitality of its current programs and the likely success of its future plans. What they saw impressed them and led to Baylor earning a AA- rating for those bonds (click here and here for more detailed explanations of what that means).
Furthermore, when those bonds were put back out on the market where they were offered to the general public for the very first time, demand was four times the supply. That means investors really liked what they saw in Baylor’s financial standing, as well.
I’m no economics expert, but I know that those savvy enough to be making bonds a part of their investment portfolio and the investment professionals who hold bonds don’t just throw money around. They do their research, and the fact that they’re happy with where Baylor is financially leads me to feel pretty good about where Baylor is, too.
Sic ’em, Baylor!