The University of North Carolina Chapel Hill has attained a AAA bond rating from Fitch, although the liquidity of its alternatives portfolio may be a concern.
The university has more than $1 billion in bonds. Non-marketable securities, including private equity, hedge funds and real estate, represented approximately 74.2% of fiscal 2010 total investments at UNC. The universitys increased exposure to alternative assets over the past decade is a somewhat concerning according to Fitch, given the valuation and liquidity issues that often accompany these investments.
According to the rating company, the university does not rely upon these