+The Elements of Capital and Strategy
CAPITAL MARKETS UPDATE
H2C INSIGHTS as of Nov. 23, 2020
Rates and Economic News
From Nov. 13 to Nov. 20, 10-year and 30-year MMD rates decreased by 8 bps and 13 bps, respectively, while 10-year and 30-year Treasury rates decreased by 6 bps and 12 bps, respectively. The 30-year MMD-to-Treasury ratio decreased to 92.8 percent, compared to 93.9 percent last week. For the seven-day period ending Nov. 18, municipal bond funds recorded $1.3 billion in net inflows.
For the week ending Nov. 20, U.S. Corporate IG spreads decreased by 4 bps, and tax-exempt “A” rated healthcare spreads to 30-year MMD decreased by 4 bps.
SIFMA remained the same at 0.11 percent. Tax-exempt municipal money-market fund assets decreased by $800 million to total net assets of $110.5 billion for the seven-day period ending Nov. 18.
On Nov. 19, the U.S. Department of Labor reported that 742,000 initial jobless claims were filed for the week ending Nov. 14, approximately 31,000 higher than the upwardly revised total of 711,000 initial jobless claims in the prior week. This brings the total number of individuals who have filed for unemployment insurance in the past 37 weeks to 68.6 million. However, continuing claims, which details how many Americans remain unemployed, totaled 6.4 million, a decrease of 429,000 from the previous week’s upwardly revised number.
On Nov. 20, Adventist Health System/West (NR/A/A+), Roseville, Calif., issued up to $150 million in taxable commercial paper notes (Series 2020A). The taxable commercial paper notes have a short-term rating of A-1 by Standard & Poor’s and F1+ by Fitch.
Excela Health (Baa1/NR/NR), Greensburg, Pa., is planning to price $89.2 million in bonds consisting of $47 million in tax-exempt, fixed-rate bonds (Series 2020A) and $42.2 million in taxable, fixed-rate bonds (Series 2020B). The bonds will be used to refund prior debt and fund general corporate purposes. (See Excela Health POS.)
Washington Township Health Care District (Baa2/NR/NR), Fremont, Calif., is planning to price $40.4 million in tax-exempt, fixed-rate bonds (Series 2020A). The bonds will be used to refund prior debt. (See Washington Township Health Care District POS.)
West Virginia University Health System (A2/A/NR), Morgantown, W.V., is planning to price $333.8 million in taxable, fixed-rate bonds (Series 2020A). The bonds will be used to refund prior debt and fund general corporate purposes. (See West Virginia University Health System POM.)
Recent Rating Actions
Terrebonne General Medical Center (LA): Affirmed Baa1; Outlook stable
Mayo Clinic (MN): Affirmed Aa2; Outlook stable
West Virginia University Health System (WV): Affirmed A2; Outlook stable
Scurry County Hospital District (TX): Affirmed Ba2; Outlook revised to “stable” from negative
Washington Township Health Care District (CA): Affirmed Baa2; Outlook negative
Bryan Health (NE): Affirmed A1; Outlook stable
Southeastern Health (NC): Affirmed BBB+; Outlook revised to “stable” from negative
Marin General Hospital (CA): Downgraded to BBB+ from A-; Outlook negative
Novant Health (NC): Affirmed AA-; Outlook stable
West Virginia University Health System (WV): Affirmed A; Outlook stable
Children’s Hospital of Orange County (CA): Affirmed AA-; Outlook stable
Northern Light Health (ME): Affirmed BBB; Outlook stable
Northwell Health (NY): Affirmed A-; Outlook stable
Presbyterian Healthcare Services (NM): Affirmed AA; Outlook stable
MMD YIELD CURVE • Current vs. 1 Year Ago
UST YIELD CURVE • Current vs. 1 Year Ago
INTEREST RATE SNAPSHOT
ABOUT HAMMOND HANLON CAMP LLC
H2C is an independent, healthcare-focused strategic advisory and investment banking firm with a particular emphasis on the not-for-profit sector. The firm’s principals have been lead advisors on hundreds of transactions in the healthcare industry representing billions of dollars in value, offering the experience and industry knowledge to achieve the most favorable results.
858 242 4810
Source: Bond Buyer, Bloomberg and MMD – Thomson Reuters Municipal Market Data as of November 20, 2020.
(1) Rates as of November 18, 2020.
For additional information, please contact Elaine Yao (firstname.lastname@example.org or 212 257 4509) or Phil Kaplan (email@example.com or 312 508 4212). The information presented herein was obtained from resources believed to be reliable and accurate, but Hammond Hanlon Camp LLC does not guaranty the accuracy or completeness, or assume a responsibility for any loss which may result from the action by any person upon such information. Such information is subject to change without notice and is not intended as a recommendation, offer, or solicitation with the respect to the purchase or sale of any security.