The University of Cambridge in the UK is planning to raise up to £400m from its first bond issue, following a trend set by US Ivy League institutions to turn to the money markets for funding, reports the Daily Telegraph. Andrew Reid, the university’s finance director, admitted he was worried by the step into the relative unknown but said it was the best way to secure funds for two big building projects. He added that the bond issue would be likely to be a “one off” action, rather than a regular fund-raising technique.
This is the logical way forward to fund infrastructure development.
And to provide reliable investments and income streams to underpin pensions.
More bonds please: that's what I say. Real work is created. real benefits can be seen to arise. Real returns are paid. They accrue over the long term as pension investment requires. They are the way to finance our way out of recession.