2010-01-04 14:02:52.192 GMT (Adds analyst comment in eighth paragraph.) By Caroline Hyde and Sonja Cheung Jan. 4 (Bloomberg) -- The University of Cambridge, the second-oldest in the U.K., is considering selling bonds for the first time to take advantage of a rally in credit markets. The 800 year-old school should “proceed as soon as possible with a long-dated issuance in the fixed-interest markets while conditions remain historically favorable,” according to a recommendation by the Board of Scrutiny, the university’s watchdog. Cambridge hasn’t sold bonds in the public market before, according to data compiled by Bloomberg. “A university such as Cambridge could offer the same sort of long-term stable cash flows you tend to see with a utility issuer,” said Simon Ballard, head of European credit strategy at RBC Capital Markets in London. “It would likely be a relatively attractive defensive name for buy-and-hold investors.” Universities and colleges in the U.K. have no publicly issued bonds outstanding, while in the U.S. and some other European countries, such as Spain, sc
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