WSJ article:

Trump’s War Against Higher Education Hits the Sector’s Bonds

SOLVE data used to analyze how policy shifts are driving up borrowing costs for colleges.

May 23, 2025 – Concerns over federal policy shifts under the Trump administration are pushing up borrowing costs for U.S. colleges and universities. Potential changes—such as eliminating the tax-exempt status of municipal bonds—are raising alarm among investors and schools alike. Analysts note that higher yields are already being demanded to finance new campus projects, which could ultimately raise tuition.

SOLVE Data Highlights Yield Spike
The Wall Street Journal highlights that the impact is being felt across the higher-education bond market, with yields on college-issued bonds rising while comparable securities have held steady or declined.

“The yield on a Harvard bond maturing in 2036 was 4.1% on May 19, up from 3.2% on Jan. 3, according to fixed-income market-data provider Solve.” This trend underscores growing uncertainty among investors and issuers alike.

Smaller Colleges Face Greater Risk
While elite institutions may be able to absorb the cost or access other financing options, smaller colleges reliant on tax-exempt bonds could be hit hard. Jackson College, for example, projects it would pay $11 million more on a $45 million bond issue if the exemption is removed. The policy discussion remains fluid, but the financial implications for the sector are already taking shape.

Dig Deeper with SOLVE Px
As policy shifts reshape the municipal bond landscape, real-time pricing and market coverage are critical. SOLVE Px delivers AI-powered pricing intelligence across the full fixed income universe—equipping investors with the transparency they need to respond confidently.

Read the full article here.

About SOLVE

SOLVE is the leading market data platform provider for Fixed-Income securities, trusted by sophisticated buy-side and sell-side firms worldwide. Founded in 2011, SOLVE leverages its AI-driven technology and deep industry expertise to offer unparalleled transparency into markets, reduce risk, and save hundreds of hours across front-office workflows. With the largest real-time datasets for Securitized Products, Municipal Bonds, Corporate Bonds, Syndicated Bank Loans, Convertible Bonds, CDS, and Private Credit, SOLVE empowers clients to transform the way they bring new securities to market, trade on secondary markets, and value highly illiquid securities. Headquartered in New York, with offices across the globe, SOLVE is the definitive source for market pricing in Fixed-Income markets.