Hospital bonds have gained 9.1 percent this year, while healthcare bonds have gained 9.5 percent. Currently, they are the best-performing revenue instruments in the municipal market, according to the report.
Standard & Poor’s and other financial agencies expect the big gains to continue, as the Federal Reserve plans to keep interest rates at historic lows, which will invite investors to add riskier, higher-yielding bonds like hospital and healthcare debt.
The interest rate spread between AAA-rated securities and BBB-rated securities in August fell to 1.1 percent, the smallest spread since 2008, according to the report.
More Articles on Hospital Bonds:
18 Hospitals With Tax-Exempt, Fixed-Rate Bond Issues in Past Month
Reviewing This Summer’s Hospital Bond Markets: Q&A With Pierre Bogacz, Co-Founder of HFA Partners
