When it comes to selling bonds, at least, Yale is thumping its rival in Cambridge.
Both universities sold bonds recently to raise money for ongoing construction projects, with Yale selling $540 million of top-rated bonds Tuesday and Harvard selling $480 million in January. But thanks to a higher demand for Yale’s bonds, the University will pay 3.35 percent interest on its bonds by the time they are due in July 2025, while Harvard’s yield is 3.46 percent, Bloomberg reported this week.
Analysts suggested Yale won a lower rate because Connecticut is wealthier per capita than Massachusetts, and because there are few tax-free bonds on the market in Connecticut.
“Not only is it an Ivy League credit, it is Connecticut tax-exempt,” Fred Yosca, an analyst for BNY Mellon Capital Markets in New York, told Bloomberg. “There’s never any Connecticut paper around anymore.”