News Headlines Article

Supercommittee Cuts Threaten Hospital-Bond Rally: Muni Credit
San Francisco Chronicle

Hospital bonds, the best-performing part of the $2.9 trillion municipal-debt market this year, may decline as federal and state lawmakers weigh cuts in health-care payments, the largest income source for U.S. medical facilities. Tax-exempt bonds backed by hospital income earned 9.7 percent in 2011 through Oct. 31, according to Barclays Capital indexes that include price gains and interest. That beat nine other categories of revenue debt including water systems, electric utilities and roads and airports. General-obligation securities returned 8 percent.