UK universities ‘tricky to read’ for capital markets investors

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By Silas Brown
06 Jul 2020

Investors in UK universities are struggling to work out just how risky the sector is, as its lucrative international student intake as well as pension liabilities are still unclear. A report published by the Institute for Fiscal Studies (IFS) on Monday estimated that 13 universities may go bust if they do not either carry out debt restructurings or receive government bailouts.

The IFS reckoned the sector will lose roughly £11bn as a result of the coronavirus pandemic, mostly due to a drop in international student numbers, who pay higher fees, and an increasing deficit in university pension schemes caused by the economic downturn, which the institutions themselves will have ...

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