Clare takes out unprecedented loan to invest in stock market
Friday, November 7, 2008 : PermalinkCambridge Varsity Online – Clare College has borrowed £15 million to invest in the stock market. The unprecedented inflation-linked loan is due to be repaid in 2048 and the College expects to make a profit of around £36 million.
Clare has already invested £3.5 million and aims to have invested the full amount within two months. Clare’s Bursar Donald Hearn said he hoped the market would have bottomed out by then: “We think the market is going to go down a bit more, but may begin to recover once the FTSE drops below 3,250.
“We’re borrowing at an interest rate of 1%, and we’re reasonably confident of a useful profit. The money will only be invested in funds which track stock market indices, and will be globally diversified including emerging markets,” he said.‘
Tags: chief-executive, emerging-market, guerin, tenn, third-party, tudor, upfront, yen
trackback from your site.