Journals

No.2, 2011

Shigekazu KAWASAKI

Basic knowledge of the bond issuance in the American university

 The characteristic of the bond issuance in the American university is that it is based on the tax-exempt bond and smooth implementation of the tax-exempt bond is supported by various professional services. Tax-exempt bond issues are carried out not only by the simple reason of lack of funds but also by the university corporate strategy. For example, a university with many internal reserves adopts a leverage strategy through the means such as tax-exempt bonds. On the other hand, some universities issued tax-exempt bond positively to enhance recruitment of students and expand the facility of education and research. Furthermore, some universities made a choice of tax bond to secure the fluid fund after the financial crisis by the Lehman shock.