Obama Court Win Proves Lifeline for Health Bonds: Credit Markets
Junk bonds of health-care providers are beating the high-yield market after underperforming in the first five months of the year, as a U.S. Supreme Court ruling boosts investors’ optimism for the industry.
Speculative-grade debt of borrowers from HCA Holdings Inc., the biggest U.S. hospital chain, to Canonsburg, Pennsylvania- based Mylan Inc. have returned 3.2 percent since the end of May, compared with 2.4 percent for the Bank of America Merrill Lynch U.S. High Yield Master II Index. In January through May, the 4.6 percent gain for health companies trailed the 4.9 percent for the broader index.
Read the full story: http://www.bloomberg.com/news/2012-07-05/obama-court-win-proves-lifeline...