Healthcare Organizations’ Top 3 Investment Concerns for Balance Sheet Assets

September 07, 2017 | Ben Mohr, CFA, Senior Research Analyst, Fixed Income

Historically, healthcare organizations have covered their cost of debt by investing in a conservative mix of fixed income securities. However, for most of the recovery since the Great Recession, the yield on their debt payments exceeded the Bloomberg Barclays Aggregate (Agg) bond index yield. Therefore, many organizations were forced to consider riskier assets to cover their debt payments as a result of this adverse spread. Now that the Federal Reserve rate hikes are underway, Agg yields are once again approaching parity with healthcare issuer debt yields and thereby reducing the pressure to invest in riskier assets to make up for the spread disparity.

Download PDF

Ben Mohr, CFA
Senior Research Analyst, Fixed Income

Get to Know Ben

Related Content

04.18.2019

Global Central Banks React to Slowed Economic Momentum

In 2017 the global economy underwent a synchronized move upward and investors saw equities throughout the world generate double-digit returns….

04.16.2019

First Quarter Review of Asset Allocation

Heading into 2019, the primary risks facing financial markets were the trade war with China, the U.S. government shutdown, Brexit…

04.12.2019

The Latest Key Developments in the Healthcare Industry

Health systems today face significant challenges, further complicating an ever-changing landscape. Some of the most notable trends we see in…

04.04.2019

1Q 2019 Market Briefing

Live Webinar – Thursday, April 18, 2019 – 1:00-2:00 PM CT

03.26.2019

Yield Curve Inversion Intensifies: Will This Time Be Different?

An inverted U.S. Treasury yield curve — one in which long term rates are lower than short term rates —…

03.22.2019

MSCI Plans to Increase China A-Share Exposure

After several years of consideration, in May 2018 MSCI added a small portion of the China A-share…

More articles

Subscribe to Research Email Alerts

Research Email Alert Subscription

Research alerts keep you updated on our latest research publications. Simply enter your contact information, choose the research alerts you would like to receive and click Subscribe. Alerts will be sent as research is published.

We respect your privacy. We will never share or sell your information.

Thank You

We appreciate your interest in Marquette Associates.

If you have questions or need further information, please contact us directly and we will respond to your inquiry within 24 hours.

Contact Us >