Meketa Connectives | Rethinking Liquidity: fixed income’s role in university endowments

Universities face multiple headwinds that may include the threat of rising tax rates on investment income, reduced federal support, declining enrollment, and rapidly rising costs.

Moreover, some illiquid investments like private equity and real estate have been providing on average lower than were historically the case.¹ While Harvard, Yale, and Princeton can access liquidity by issuing taxable bonds and borrowing from banks, other adherents of the Yale model that favors illiquid but higher return-generating private investment may have fewer options for meeting their liquidity needs.²

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