Wednesday, April 2, 2014

'Swapping Our Futures' Revisited - Pt II

Peter Taylor in his exit interview w/ the Daily Bruin - he gets into the 'Swapping Our Futures' report again:
"The University actually has already changed its investment practices about five to six years ago and, frankly, they’re paying dividends. If you look at our five-year returns compared to the private universities, we’re in the top third. If you look at our one-year returns, we’re in the top quartile. Our changes are paying off. Ten years ago, the regents had a very conservative investment philosophy, no question about that. But I think they’ve made the appropriate changes, and like I said, the trend is our friend. So I think the criticism is, frankly, four or five years late.

In terms of swap portfolios, again I think it’s folks who don’t understand what a swap is, comparing apples to oranges. Our swap portfolio saved us well over $40 million. That’s the absolute hard facts. And we’ve been very careful. We only use swaps on about 9 percent of our debt portfolio – very responsible. We did a deal this past fall – $600 million variable rate transaction that we swapped to fixed for 10 years. We saved an enormous amount of money alone on just the swap: over $30 million. I get paid to deliver value for taxpayers and students and their parents. If I have a chance to save $30 million, I’m absolutely gonna pull the trigger on that deal. I should be held accountable if I didn’t.

And, his crystal ball answer to another question: "I can see frankly an increase in professional master’s degree programs, I can see an increase in technology commercialization versus what we do now, in addition to things like a slight increase in nonresident enrollment."

Also see Remaking the University: UC Vice President Taylor Leaves Suggesting Even Greater Debt for Students
LA Times gave the best description of the place he's heading to next- the corp and the foundation interplay.
...wish Daily Bruin would have asked him about current state of UC PATH and his time at Lehman-- to clarify both.

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