Treasury Management manages the external debt issued by the University. The University issues debt on its own behalf, and at times, through the Commonwealth of Virginia. The University's debt management approach is defined in its Debt Policy approved by the University's Board of Visitors. Treasury issues both long-term debt and short-term debt such as Commercial Paper, on behalf of the University. In addition, Treasury manages the interest rate risk of its debt portfolio through its Interest Rate Risk Management Program.
The University issues debt to primarily fund capital expenditures. Treasury manages its debt so that outstanding debt does not exceed the University's debt capacity as defined in its Debt Policy.