The $250 billion municipal hospital-bond market is proving immune to Donald Trump’s plan to eliminate Obamacare.
Sutter Health is among nonprofits tapping demand for the tax-free debt, with the California chain planning to sell $850 million in new securities this week. Health-care bonds are beating the overall $3.7 trillion municipal market for a third straight year as the federal law expanding medical coverage to Americans improves business. Despite the Republican presidential nominee’s goal, the rally has been undaunted as investors hunt for yield while rates hold near record lows.
“There’s lots of demand with all of the money pouring in,” said Mike Quinn, a managing director at Chicago-based investment bank Ziegler, which underwrites bonds for hospitals. “This is a really great environment for health-care borrowers to issue tax-exempt money.”
HENRY KOTULA 