The long-term rating on the bonds issued by the Massachusetts Health and Education Facilities Authority and Harvard University reflects overwhelming financial resources provided largely by an endowment of $9.1 billion on June 30, 1996; strong management of admissions, investments, and operations; and excellent demand for Harvard's academic programs. The short-term rating reflects Harvard's ability to cover its short-term debt and demand bonds with $1.949 billion of same-day cash and investments. As of June 30, 1996, Harvard's endowment was valued at $9.1 billion. Both its endowment and general operating cash are invested by Harvard Management Co. in a sophisticated portfolio that uses leverage and derivative instruments to achieve higher returns. However, Harvard does not speculate on the direction of interest rates
