Hello Folks, I was recently going through an article which stated: “Under U.S. income tax laws, a tax-exempt organization (such as an ERISA plan, a foundation, or an endowment) engaging in an investment strategy that involves borrowing money is liable for a tax on “unrelated business taxable income” (“UBTI”), notwithstanding its tax exempt status.” Is this true that a levered tax exempt institutional investor would lose tax exempt status. I don’t remember that i came across such a thing in schwesers. Can any one of you guys confirm?