"Universities may have negative events befall them, but at this point, their outlook may look relatively stable to industrials where we regularly see huge changes that wreak havoc on their business models and credit quality," adds Tipp, noting the telecom, auto and industrial sectors.
If other universities take UPenn's bond issue as a reason to tap the 100-year market, investors may be best served viewing the rare-bond market phenomena as inspiration to continue the hunt for high quality and dividend yielding investment opportunities in other markets like stocks.
That's especially the case since bond yields are unlikely to surge anytime soon. "The 10-year Treasury yield is justified no matter how much people think rates are going to rise over the long term," says Tom Higgins the Global Macro Strategist for Standish Mellon Asset Management, a fixed income investor with $86 billion in assets under management. "The economy is still fragile and susceptible to shocks."
For more on Warren Buffett's investments, see why Wells Fargo may prove the "Oracle" right again. See 10 dividend stocks held by high rated fund managers for some investing ideas. Also see how to position for inflation for more on ways to stay ahead of the curve.-- Written by Antoine Gara in New York
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