The rich universities get rich fasterThe Wall Street Journal.
The coffers of the nation’s 40 wealthiest universities, including Harvard University, Stanford University and the University of Michigan, are filling at a faster rate than those of other universities, thanks to particularly strong investment performances and generous donors, according to a report by Moody’s Investors Service.
“It’s really a tale of two college towns, if you will, or cities,” said Karen Kedem, vice-president and senior credit officer at Moody’s. “Looking ahead, the expectation is that this [gap] will only widen.”
The 10 richest institutions held nearly one-third of total cash and investments at four-year universities in fiscal 2014, while the top 40 accounted for two-thirds. Wealth was concentrated among elite universities at similar rates before the financial crisis, but the gap shrank as top universities lost big on more-volatile investments in 2008 and 2009. They have more than recovered since then.
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