Risky US healthcare bonds should widen, says BAML

By David Bell
18 Dec 2017

A report from Bank of America Merrill Lynch on Friday said that high yield bonds from US healthcare companies should be trading wider to the rest of the market, given the potential for secular industry changes on the back of regulatory and tax reform risks.

The analysts suggested in the report that high yield investors had become complacent over healthcare credit fundamentals since the financial crisis, because of the stability of earnings from the sector. 

Borrowers have been able to increase leverage by a full turn since the financial crisis, from around 4.5 ...

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