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
Riskier Hospital Bonds Attract Yield-Seeking Investors
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
