The low rates are making it easier for non-profit hospitals to borrow, and possible reasons for the low-interest indices include involvement from the Treasury Department, strong demand from investors and high returns from municipal bonds.
“Combined with a noticeable compression in credit spreads over the last few months, the low benchmark rates are sure to help not-for-profit borrowers of every stripe — not just hospitals — lock in what may be remembered for years to come as an absurdly low cost of capital,” according to the report.
More Articles on Hospitals and Municipal Bonds:
West Penn Bondholders Demand More Disclosure
Hospital, Healthcare Bonds Yielding Highest Returns in 3 Years
Reviewing This Summer’s Hospital Bond Markets: Q&A With Pierre Bogacz, Co-Founder of HFA Partners
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