Villanova University

Nov 13, 2023

Villanova Steps in to Rescue Investors in Neighboring College ICBC tells clients to reroute some trades after cyber issue Israel Latest: US Strikes Iran-Linked Targets in Eastern Syria European Union Shortens Venezuela Sanctions Review Amid US Democracy Push Ukraine Recap: EU Ministers to Discuss Continued Help for Kyiv Exxon Aims to Become a Leading Lithium Supplier for EVs by 2030 Rockfire Pulls Out of Plan to Buy Emirates Gold on UK Sanctions US Shutdown Risk Lingers Despite House Speaker’s Compromise Plan Dye & Durham Taps Goldman, Canaccord for Possible Payments Unit Sale Germany Warns More Commercial Real Estate Pain Ahead US Consumers Trim Inflation Expectations and Outlook for Finances Is Mixed European Gas Prices Slide as Concerns About Israeli Output Ease Dutch Pension Funds Send Shockwaves Through Euro Swap Market OPEC Argues Against Excessively Negative Sentiment in Oil Market Brazil Launches First-Ever Offering of Sustainable Bonds Banxico to Hold Key Interest Rate Unchanged in December, Governor Tells El Financiero Goldman Sachs, Morgan Stanley Diverge on Fed Rate-Cut Forecasts Bank of America’s Top China FIG Banker Hsueh Is Said to Depart UK’s Hydrogen Ambitions to Get a Boost From Gas Grids’ Project Kids should learn financial literacy in school over 'parallelograms and rhombuses': author Ottawa extends deadline for Underused Housing Tax Financial advice from AI may be educational but not holistic, experts say Women less likely than men to request a raise, negotiate salary: surveys Timing, patience key to nabbing affordable concert, sports resale tickets: fans Many Canadians 'uncomfortably close to broke': MNP It’s never too early to think about tax-loss selling: Dale Jackson Many Canadians stuck in 'chaotic whirlwind of personal finance stress': Edward Jones Money manager of $205M in assets explains how meditation informs his decisions Canadian tech workers make 46% less than U.S. counterparts: TMU study HELOCs can play a vital role in your finance toolkit: Dale Jackson Financial planning for raising kids: expert says cash flow is key HELOCs can play a vital role in your finance toolkit Financial stress levels climb as Canadians use debt to pay for essentials Looking for flights on a budget? Consider price freezing and other newer trends Employers set aside less for 2024 pay increases: survey Financial uncertainty new normal for many Canadians, RBC survey shows Bank of Canada rate pause opens sweet spot for savers: Dale Jackson 3 silent portfolio killers that could drain your retirement savings Germany Warns More Commercial Real Estate Pain Ahead Average Canadian rent price hits new high for sixth consecutive month: report Deutsche Bank’s Courtship Is Heart of Trump NY Trial Defense Home Depot and Lowe’s Face Slump From Higher Rates and Housing Prices China’s Consumption Recovery Is Losing Momentum, Data Show China’s Credit Growth Weaker Than Expected in October Typical US Homebuyer Earns $107,000 and Is More Likely to be a Single Woman Buying Junk Bonds Is the Top Contrarian Trade for 2024 Spain’s Neinor Signs €150 Million Deal to Fund Housing Projects ByteDance Billionaire’s VC Firm Sets Up Shop in Marquee HK Tower Embattled SBB Slashes Portfolio Value by 10% Amid Higher Rates British Land Reported £194 Million Wiped Off Portfolio Value Swedish Households’ Outlook on Housing Prices Fades Further British Land Beats Property Market Turmoil: The London Rush Goldman Downgrades Hong Kong-Traded China Stocks, Raises India HK Office Backed by Goldman Cuts Asking Price by More Than 30% China’s Carbon Emissions to Drop Next Year on Clean Energy Boom RBA’s Kohler Sees Further Price Cooling Being More Drawn Out UK Home Asking Prices Post Biggest November Fall in Five Years Nikki Haley Poaches Donors From Republican Rivals Orsted Quits Norway Offshore Wind Venture as Cost Crisis Deepens Israel Latest: US Strikes Iran-Linked Targets in Eastern Syria European Union Shortens Venezuela Sanctions Review Amid US Democracy Push Ukraine Recap: EU Ministers to Discuss Continued Help for Kyiv Cameron’s Shock Return Revives Questions About Greensill Links Exxon Aims to Become a Leading Lithium Supplier for EVs by 2030 Rockfire Pulls Out of Plan to Buy Emirates Gold on UK Sanctions US Shutdown Risk Lingers Despite House Speaker’s Compromise Plan Bad Boy Furniture aiming to restructure business as it faces 'challenging' economy Dye & Durham Taps Goldman, Canaccord for Possible Payments Unit Sale Germany Warns More Commercial Real Estate Pain Ahead US Consumers Trim Inflation Expectations and Outlook for Finances Is Mixed European Gas Prices Slide as Concerns About Israeli Output Ease Sunak Brings Ex-PM Cameron Into UK Cabinet in Shock Move Andreessen-Backed Blockchain Startup Hires Former YouTube Gaming Head Saudia Weighs Fleet Expansion With Talks for 150 Airbus A320s UK Latest: Sunak Names Cameron Foreign Secretary in Shock Move Los Angeles Braces for Long Traffic Nightmare After Freeway Fire Israel Latest: US Strikes Iran-Linked Targets in Eastern Syria European Union Shortens Venezuela Sanctions Review Amid US Democracy Push Ukraine Recap: EU Ministers to Discuss Continued Help for Kyiv Exxon Aims to Become a Leading Lithium Supplier for EVs by 2030 Rockfire Pulls Out of Plan to Buy Emirates Gold on UK Sanctions US Consumers Trim Inflation Expectations and Outlook for Finances Is Mixed European Gas Prices Slide as Concerns About Israeli Output Ease OPEC Argues Against Excessively Negative Sentiment in Oil Market UK’s Hydrogen Ambitions to Get a Boost From Gas Grids’ Project Brazilian Poultry Producer Scraps Plans to Sell Pet Food Business Cameron’s China Ties Draw Fresh Scrutiny With ‘Golden Era’ Over China’s Consumption Recovery Is Losing Momentum, Data Show Five Key Charts to Watch in Global Commodity Markets This Week Thanksgiving Travel in US Set to Hit Post-Covid High India to Seek Bids For $960 Million Battery Production Program To Meet Climate Goals, Gulf Countries Will Have to Overhaul Everything Israeli Gas Flows to Egypt Rise 60% This Month as Risks Ease De Beers Will Stockpile Unsold Diamonds After Prices Tumble New Plastics ‘Offsets’ Point to Next Frontier in Controversial Green Claims It's boom times for startups trying to electrify aviation 'I was parked luggage': Accessibility advocates speak out about demeaning air travel The Week Ahead: Metro, Loblaw to report earnings Unifor auto talks: a quiet end to one of the year's biggest labour clashes Tabatha Bull on the need for more Indigenous women in energy Central banks 'not sure' where interest rates will ultimately land: Desjardins economist ​The Daily Chase: Earnings from AtkinsRealis, Sleep Country, Saputo 'We had an amazing summer': Cineplex CEO on recent box office success New bill would ban replacement workers in federal workplaces during strikes, lockouts Powell reinforces U.S. Fed's cautious approach toward further interest rate hikes Pay transparency: Provinces split on enforcement of new rules Crabby business: N.L. fisheries worker charged with accepting 'pans of crab' as bribe Canadians should plan for higher rates in the long run, BoC’s Rogers says Cost of unpaid caregiving higher than essentials for some Canadians: survey Holiday job postings down from last year amid slowing economy: Indeed Newfoundland and Labrador to launch basic income program for residents aged 60-64 Corporate world should be more accepting of immigrants: Wes Hall BoC's governing council split on whether interest rates need to rise further Canadians plan to scale back on holiday spending amid high living costs: BMO index Israel Latest: US Strikes Iran-Linked Targets in Eastern Syria European Union Shortens Venezuela Sanctions Review Amid US Democracy Push Ukraine Recap: EU Ministers to Discuss Continued Help for Kyiv Cameron’s Shock Return Revives Questions About Greensill Links Sunak Brings Ex-PM Cameron Into UK Cabinet in Shock Move UK Latest: Sunak Names Cameron Foreign Secretary in Shock Move Croatia Names Defense Chief After Crash Leads to Banozic Dismissal African Opposition Leaders Move to Halt Senegal Democracy Slide Deutsche Bank’s Courtship Is Heart of Trump NY Trial Defense Banks Put Forward for Exclusion From EU’s Toughest ESG Rules Yet Cameron’s China Ties Draw Fresh Scrutiny With ‘Golden Era’ Over Poland’s Transition of Power Starts as Pro-EU Bloc Picks Speaker Massa Goes on the Attack Versus Milei in Argentina’s Last Debate Italy Faces Barriers to Obtain About €90 Billion in EU Funds Slovakia to Impose Bank Tax, Levies to Fund Social Spending China Weighs Ending Freeze on Boeing With 737 Max Deal in US Spain’s Sanchez to Face Premiership Vote in Congress on Nov. 16 Polls to Disrupt India Stocks Calm in 2024, Morgan Stanley Says Pricey Potatoes Hurt Cherished South African Lunch Culture Exxon Aims to Become a Leading Lithium Supplier for EVs by 2030 Andreessen-Backed Blockchain Startup Hires Former YouTube Gaming Head Los Angeles Braces for Long Traffic Nightmare After Freeway Fire US Pledges Work Toward More Airwaves for Wireless Providers Facing Surging 5G Demand Salesforce Names Denise Dresser CEO of Slack, Replacing Jones Cameron’s China Ties Draw Fresh Scrutiny With ‘Golden Era’ Over Apple’s China Woes Stoke $20 Billion Xiaomi Rally China’s Consumption Recovery Is Losing Momentum, Data Show Asia Fund Takes Majority Stake in Firm Once Backed by Bankman-Fried Loan Nvidia Upgrades Processor as Rivals Challenge Its AI Dominance India to Seek Bids For $960 Million Battery Production Program Here’s How to Get Ahead of Travel Nightmares This Holiday Season Billionaire Kellnerova Unites All Family Assets in New Company Google Sues Scammers Over Fake Bard AI Chatbot That Downloads Malware Vodacom Boosts Sales By More than a Third Due to Egypt Deal Huawei Launches Two More China EVs After Aito's Instant Success Bill Gates-Backed Startup to Use Old Wood to Remove Carbon From the Air Royal Mail Fined £5.6 Million For Late Delivery of Letters Emerging-Market Stocks Halt Declines as China Sentiment Improves The U.S. Fed is failing in four ways: Mohamed A. El-Erian Apple, JPMorgan turn to pay now grow later Remote Working Boom Is Huge for College Towns Like Knoxville Walmart flashes a warning sign to the entire consumer economy: Andrea Felsted Millennials are finally spending like grown-ups Dismal U.S. GDP report raises the odds of recession this year: Gary Shilling Musk is wrong for Twitter even if deal math works out Chocolate bunnies can teach us to save our food supply The Fed has made a U.S. recession inevitable America's oil reserve weapon risks misfiring Four-day workweeks can burn you out U.S. Fed expects a soft landing. Don't count on it Markets are pushing Fed into developing-economy territory Commodity traders go from bonanza to bailout plea Putin's war shows West must clean up dirty money Salary transparency is good for everyone Microsoft's US$69B Activision deal could be a blunder What if the oil market bulls are wrong and this lonely bear is right? Canada's trucker protest may spread from Ottawa to U.S. One Year After FTX Imploded, Here’s How Crypto Is Changing Bitcoin ETF Exuberance Drives Four-Week ‘Nothing for Sale’ Rally UBS Allows Wealthy Clients to Trade Crypto ETFs in Hong Kong BlackRock Filing Spurs Ether Rally as ETF Bets Fire Up Crypto Bitcoin Trades Past $36,000 on Possible ETF Investment Approval Novogratz’s Galaxy Says Quarterly Loss Widened Ahead of Bitcoin ETF Bid ESG Veteran Says Purge Has Further to Go With ETFs Next in Line Asia Stocks to Open Mixed After S&P Extends Rally: Markets Wrap Asian Shares to Dip After Wall Street Rally Fades: Markets Wrap Ex-Cantor Executives Start Lending Platform for Anticipated Spot Bitcoin ETFs BlackRock’s $100 Billion Model Makers Are Betting on Megacaps Cathie Wood Sells Top Bet Roku as Stock Surges on Upbeat Outlook Asia Stocks Set for Bullish Tailwind from US Rally: Markets Wrap Record-Setting Push Into Both Ends of Yield Curve Set to Pay Off Bulls Are Back in Emerging Markets as Growth Stocks Outperform Bitcoin Has More Than Doubled This Year In Unforeseen Resurgence Hong Kong Mulls Allowing Spot Crypto ETFs in Pursuit of Asia Hub Pimco, JPMorgan Are Gearing Up for Long Winter in China Markets Bond Market Has Fighting Chance to Avoid Historic Losing Streak World Series breakthrough for teams’ business Shane Pinto suspension the result of a regulated gambling market that works, say industry insiders Canadian Football League fanatics fuel financials What’s next for private equity investment in professional sports? Canada’s Davis Cup team finding love Impact of Jersey Ads on the NHL Promising Puck Drop for PWHL Betting on Women's Sports is on the Rise NHL expands market to Oz ‘Tis the Season for Selling Sports Books Television deals, ratings generate record-setting NFL revenue Playing for global basketball and sponsorship glory Awareness still at disadvantage in decades-long battle for tennis pay equity FanDuel, Rivalry deliver something new for betting customers Corporations considering Canadian cricket Amanda Albright, Bloomberg News The Villanova Wildcats cheerleaders run flags onto the court before a basketball game. Photographer: Kevin C. Cox/Getty Images , Photographer: Kevin C. Cox/Getty Images (Bloomberg) -- Villanova University in Pennsylvania is rescuing bondholders who own debt sold by Cabrini University, a small Roman Catholic school that announced it would close in 2024 after struggling financially for years. Cabrini, which has about 1,600 enrolled students, announced in June that it would sell its campus to its large neighbor, Villanova University, which boasts nearly 7,000 undergraduate students. There were no details initially released on what the deal would mean for bondholders holding some $45 million in debt, and S&P Global Ratings warned it could downgrade the school’s bonds in light of the closure. But Cabrini University just announced some good news for investors: As part of an agreement with Villanova, the larger school would either set aside funding to pay off the bonds or it would assume the debt itself, according to a Nov. 2 regulatory filing. “It’s an excellent outcome for bondholders,” said Adam Weigold, head of the municipal fixed income team at Manulife Investment Management, which owns some of the Cabrini bonds. He estimated that the bonds’ prices would likely surge at least over 10 cents on the dollar under the two scenarios outlined. Cabrini said it decided to close after years of trying to fix its finances. The college cited declining enrollment and an “increasingly difficult higher ed landscape.” The boards for both schools have approved the deal, but it still has to be approved by various entities over the next year, including by the Pennsylvania Department of Education. Cabrini expects to cease operations on June 30, 2024, after the current academic year ends. Related: Villanova to Take Over Campus of Struggling College Next Door The schools haven’t disclosed what Villanova is paying to acquire Cabrini’s campus. Spokespeople for Cabrini and Villanova declined to comment further. Cabrini was founded in 1957 and is named after the first American naturalized citizen saint, Mother Frances Cabrini. The school has a 112-acre, tree-lined campus in Radnor, Pennsylvania, about two miles (3.2 kilometers) from Villanova. Its campus includes the Holy Spirit Library, a mansion that serves as the president’s office, and various athletics facilities like tennis courts. Villanova says it plans to continue Cabrini’s work on immigration issues by creating a new center and also will host an annual event focused on women’s leadership. “This agreement provides an opportunity for Villanova to honor the legacy of Mother Cabrini and Cabrini University, while furthering our commitment to advancing Catholic higher education,” Peter Donohue, president of Villanova University, said in a statement. Neighboring Colleges After Cabrini announced it would close and sell its campus to Villanova in late June, the prices on Cabrini debt dropped. Debt due in 2047 traded at around 98 cents on the dollar in April before the closure announcement on June 23, but by July dropped to around 90 cents. Investors can take losses when universities close. Bondholders’ prospects for recovering their money often relies on the sale of its assets. But finding a buyer of a college campus can be tough given it’s a unique type of real estate and colleges can be located in remote areas. Cabrini, meanwhile, benefited from being located right next door to an entity that could use its facilities. Weigold said the real estate deal benefited both universities — Villanova gets to expand its real estate footprint to the neighboring school’s picturesque campus. For large schools like Villanova, “these opportunities don’t come around very often,” he said. Related: New York College Liquidation Reveals Depth of Higher-Ed Distress If Villanova takes on Cabrini’s debt, the prices on the bonds would likely increase, according to Weigold. Cabrini bonds — rated BBB-, one notch above junk — would trade like Villanova debt securities, which are rated six steps higher at AA-, Weigold said. Under the other option outlined as part of the agreement, the bonds could be defeased and money would be set aside for bondholders in an escrow agreement. Weigold said he estimates the implied price would be about 106 cents on the dollar under that scenario. S&P Global Ratings said in a report on Nov. 7 that it could upgrade the bond rating if Villanova assumes Cabrini’s debt obligation as planned. If the deal doesn’t go through, it could downgrade the debt because Cabrini wouldn’t have sufficient resources available to retire the bonds over the long-term, the ratings company said. Weigold said his team purchased the bonds shortly after Cabrini made its initial announcement about selling its campus to Villanova. He said he took the risk on the debt because he thought Villanova’s relatively light debtload and large endowment would enable it to potentially take on Cabrini’s debt itself. “Our feeling was the probability for a successful outcome here was pretty good,” Weigold said. ©2023 Bloomberg L.P.