Believe it or not, schools are the second-largest public infrastructure investment in America behind transportation. For investors, getting familiar with education-sector municipal debt is crucial for understanding this massive segment of the market.
Colleges and universities rely on municipal debt for capital improvement programs, such as expanding campus facilities, at a time when post-secondary enrollment is beginning to decline. Demographic trends suggest this pattern will continue due to lower birth rates and the skyrocketing costs of post-secondary education.
Let’s take a look at the current status of the education sector of the municipal debt market and explore the opportunities and challenges the sector presents for investors.
municipalbonds.com
by Sam Bourgi
Apr 22, 2020