Elite Prep Schools Flood Muni Market After Regional-Bank Tumult
The evolution of this sector is a window into how the once-in-a-generation inflation surge and interest-rate spike has rippled through the financial system.
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Just down the road from Stanford University, a roughly $200 million campus upgrade is underway at one of the Palo Alto area’s elite private schools, with plans encompassing state-of-the-art classrooms, an aquatics center and a recording studio.
It’s a massive financial undertaking for Castilleja School Foundation. Its leadership considered loans from banks before turning to the municipal bond market, which is more often used to finance roads and bridges than projects at private institutions charging more than $60,000 a year in tuition.