Hospital Finance Update

The Hospital Finance Update is the comprehensive source for hospital debt markets and includes interest rates, credit spreads, bond issues, and rating actions.


Past Issues

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Categories

Each issue of the Hospital Finance Update includes the following categories:

  • Hospital tax-exempt issuance and credit spreads
  • Municipal bond markets indices
  • Hospital tax-exempt revenue bond issues
  • Hospital bond rating and outlook changes
  • News and market commentary

Page One

The first chart shows credit spreads paid by acute-care borrowers over the "AAA" G.O. rate in the public bond markets and issuance volumes by rating category. Credit spreads are reported for the AA, A and BBB rating categories based on the 30-day moving average TruSpread® formula (total issue credit spread), a proprietary formula which represents the present value of credit spreads for the entire bond issue after adjusting for maturity dates and amounts. TruSpread® is the difference between the issue's all-in yield and the blended "AAA" G.O. rate, taking into account all maturities. TruSpread® is calculated to final maturity regardless of whether the bonds were issued at a premium, a discount, or par. For a discussion of our formula, read A Better Way to Track the Hospital's Cost of Debt.

Issuance volume by rating category is based on data compiled by HFA Partners and excludes the following: variable rate debt, taxable debt, bank direct placements, other types of limited offerings, general obligation and tax-supported debt, remarketings, and small issues ($15 million and less). We occasionally include deals that do not meet the above criteria if we consider them meaningful.

The second chart shows for the 30-year "AAA" General Obligation tax-exempt benchmark yield (BVMB30Y 30-day moving average), the 30-year taxable Treasury yield (30-day moving average), and the short-term SIFMA index (used to price 7-day floating rate bonds). Long-term municipal bond fund flows are shown with inflows in green and outflows in red.

Page Two

The first table shows hospital tax-exempt revenue bond issues sold in the last 30 days with final maturity and TruSpread® calculated to first optional redemption date (TSTC) and to final maturity (TSTM).

The second table shows hospital bond rating and outlook changes from the three major rating agencies in the last 30 days. Affirmations are excluded. Tax-supported issuers are included starting with the April 2017 issue. To view current bond ratings for all rated hospitals, visit our bond ratings page.