Bloomberg Opinion by John Authers: Bears, Lions, Tigers — But No Bulls

Bloomberg’s John Authers “Points of Return” column past week titled Trade War: Victory Over Inflation Now Seems So Yesterday features a comprehensive analysis of challenges facing elite universities in light of potential suspension of federal funding based on MPI research Elite U.S. Endowments: Government Funding and Liquidity Pressure. “What’s preventing these elite schools from calling the president’s bluff? One reason is that their massive endowments are illiquid. Schools face differing financial strain depending on their reliance on government support. Markov Processes International’s analysis shows that about 37% of the biggest US endowments’ assets are in private equity, which is generally illiquid… MPI’s Michael Markov warns that they could thus be forced to sell PE holdings on the secondary market at a discount. The current market turmoil is pushing investors to weigh whether a discount might make sense for them,” writes Richard Abbey, citing MPI data and figures.