15.52 0.00 (0.00%)
After hours: 4:39PM EDT
|Bid||15.40 x 900|
|Ask||15.53 x 1200|
|Day's range||14.09 - 16.56|
|52-week range||10.00 - 39.37|
|Beta (5Y monthly)||2.14|
|PE ratio (TTM)||N/A|
|Forward dividend & yield||N/A (N/A)|
|Ex-dividend date||12 Mar 2000|
|1y target est||N/A|
(Bloomberg) -- Investors are finally warming up to the high-yield market, piling into a handful of new deals and propelling inflows to a record high.Junk bond funds took in $7.09 billion for the week ended April 1, according to Refinitiv Lipper, setting a new weekly record. The cash influx comes on top of three new high-yield offerings Thursday, opened up by the success of deals from Carnival Corp. and YUM! Brands Inc. earlier this week.Issuers are seeing a resurgence in risk appetite, as massive demand for new bond sales has allowed companies to go bigger and bolder with their debt offerings. T-Mobile US Inc. is issuing $19 billion of secured investment-grade bonds in the year’s second-largest sale, while Tenet Healthcare Corp. and TransDigm Group Inc. were able to boost the size of their high-yield offerings.Investment-grade issuance in the U.S. set a new weekly record, with T-Mobile and Oracle Corp. pushing supply to $110.9 billion through Thursday, edging past last week’s total. Issuers came forward with strong reception despite a record high number of U.S. jobless claims, on top of 17 new deals in Europe.Credit investors’ desire for European corporate debt showed no sign of easing as they threw more than 70 billion euros ($76.5 billion) toward new European bond offerings in just one day. Among the big ones today were oil majors BP Plc and Royal Dutch Shell Plc, taking advantage of rising oil prices after China said it would boost its reserves.“Primary market activity has resumed with a vengeance,” said Wolfgang Bauer, a fund manager at M&G Plc. “It’s fair to say that market functionality in the European investment-grade market, particularly on the primary market side, has noticeably improved over the past week.”U.S.T-Mobile was by far the largest deal on the docket today, and the second-largest this year coming behind Oracle. Investment-grade issuance reached $32.1 billion Thursday.Tenet, TransDigm and Restaurant Brands are bringing high-yield offerings, following YUM! Brands which reopened that market MondayCarnival, though technically investment-grade rated, was run off the high-yield syndicate desks and was able to boost the size and cut the coupon WednesdayFor deal updates, click here for the New Issue MonitorFunds that invest in high-yield corporate debt saw investors add $7.09 billion for the week ended Wednesday, according to Refinitiv Lipper data. Investment-grade funds saw continued outflows as $8.47 billion was withdrawn Boeing is offering buyouts to its entire staff of 161,000 people and weighing new output reductionsPimco sees opportunities in bonds issued by high-quality companies in the utility, power, health care, cable and telecom sectors, according to Mark Kiesel, the firm’s chief investment officer for global creditBankrupt shale driller Alta Mesa Resources has a tentative deal to sell itself for $220 million, down from $320 million before the buyer demanded a discount because of the coronavirus pandemicBanks that agreed to help finance leveraged buyouts are starting to feel the pain from a freeze in the market for risky corporate debtEuropeOil giants BP Plc, Royal Dutch Shell Plc and OMV AG all offered euro notes Thursday, capitalizing on a boost in oil prices after China moved forward with plans to bolster its reserves.Lloyds Bank Corporate Markets Plc and British American Tobacco Plc rounded out a total of 17 issuers that sold EU25.46bRampant demand has allowed companies to chop pricing on their bonds, with Schneider Electric SE pulling in a staggering 8.8 billion euros of orders for a 500 million-euro seven-year noteMore triple-B rated companies dove into the market, including LafargeHolcim“While last week the focus had still been firmly on issuers at the higher end of the investment-grade quality spectrum, this week BBB-rated issuers have joined the new issue pipeline,” said M&G’s BauerCorporate bond spreads continue to ease from the highest levels since 2012, falling 3 basis points to 239 basis points on WednesdayDefault-swaps insuring the highest-rated corporate debt remain elevated at about 105 basis points. Nonetheless, this compares to a peak of about 138 basis points reached last month, according to a Bloomberg Barclays indexBanks may ask authorities to advise against calls on some instruments if the economy deteriorates further, Jakub Lichwa, a strategist at Royal Bank of Canada, wrote in a noteAsiaThursday was a down day for credit in Asia. Yield premiums on Asian dollar bonds and the cost of insuring debt against default in the region both increased, as more dour news on the coronavirus pandemic limited risk-taking. Read more about that here.Spreads on top-rated Asian dollar bonds were around 10 basis points wider Thursday, according to traders, after rising 3 basis points Wednesday. They are headed for a seventh straight week of increases, the longest such streak in more than a year, according to a Bloomberg Barclays indexThe Markit iTraxx Asia ex-Japan index of credit-default swaps rose about 5-8 basis points on Thursday, according traders. The gauge widened 13 on Wednesday, according to CMA dataChinese investment-grade dollar bonds may continue to outperform other emerging-market peers, says Todd Schubert, head of fixed-income research at Bank of Singapore Ltd. Better-rated Chinese notes are often government related and seem to be considered a safe haven in emerging economies, he saysSouth Korea’s 20 trillion won ($16 billion) bond stabilization fund started buying corporate notes and commercial paper from today, the Financial Services Commission said. The regulator believes the fund will act as a safety net for the marketA sale of asset-backed securities by Korean Air Lines Co. showed carriers pummeled by the coronavirus outbreak can still issue debt, though at a steep cost. Here’s a chart showing the tumble in the airline’s dollar notes:For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Doctors and hospitals overwhelmed in the pandemic will have to make their excruciating life-or-death decisions meticulously or they risk being second-guessed by a jury when the onslaught is over.Lawyers who defend health care providers are already giving advice on how their clients can avoid liability if they’re forced to choose between patients. How they prepare for this battlefield triage now -- and how they practice it in the chaos of peak infections -- will determine whether negligence cases against them are dismissed or lead to trials or settlements over the death of a parent or spouse.“The key, in my opinion, is to have clear written policies that do not discriminate or single out certain types of patients based on age, gender, race or any of those unlawful, suspect criteria,” said Nick Oberheiden, who represents doctors in malpractice litigation.Governors and medical experts have warned that the U.S. doesn’t have enough ventilators, masks and other resources to keep struggling patients alive and check the spread of the virus in the nation’s 6,000 hospitals. As many as 200,000 Americans could die, Dr. Anthony Fauci estimated on Sunday.Oberheiden said he’s telling clients they’ll need written documentation of all decisions, including efforts to help those who are ultimately denied lifesaving care. And even though older patients are less likely to survive Covid-19, the disease caused by the new coronavirus, hospital triage plans shouldn’t single out that factor, he said.“Where it’s done correctly, it’s not simply the age,” Oberheiden said. “It’s more objective medical criteria.”Health care providers may prioritize patients without underlying conditions who are likeliest to make a full recovery, but there’s no national standard for triage. The question of withholding or withdrawing ventilators from the sickest patients is so charged that medical experts have encouraged providers to develop their own guidelines. Like the U.S. pandemic response itself, it’s largely a state-by-state and, to some extent, hospital-by-hospital patchwork.There is an established standard of care in the industry, however, and providers could be accused of breaching their duty to patients by violating it and of negligence for failing to have enough ventilators on hand, for example.It’s a tough case to make in a pandemic.“I would expect hospitals to argue that their obligations are to make sure they have adequate equipment in ordinary times, not in pandemic times, and that seems quite persuasive to me,” said I. Glenn Cohen, a bioethics expert at Harvard Law School.Read More: New Jersey Starts Weighing How to Ration VentilatorsNew protocols lay out how to ration ventilators to save the most lives in the outbreak, Cohen and others wrote Wednesday in the Journal of the American Medical Association. But a plaintiff could still claim that the hospital bungled the triage or hadn’t planned properly for an outbreak, raising further questions for the courts.Something like that happened after Hurricane Katrina in 2005. Tenet Healthcare Corp. agreed in 2011 to pay $25 million to settle a class action by the families of dozens of patients who perished in a Tenet facility in New Orleans. The plaintiffs said the company had failed to prepare adequately for the storm.In the wake of the pandemic, providers may be accused of failing to foresee a crisis that the Centers for Disease Control and Prevention and others have warned was inevitable, said Carmel Shachar, executive director of the Petrie-Flom Center for Health Law Policy at Harvard Law School. That’s especially so after the recent drumbeat of outbreaks from SARS to swine flu to Ebola.Rachel Seifert, the general counsel of Community Health Systems from 1998 to 2017, said hospitals shouldn’t be held liable amid a national shortage of critical equipment. Even so, she added, they need to be fastidious about the triage plans they are fashioning or refining as they brace for the first big wave of bad Covid-19 cases.“The wording of a memo about how to make those difficult or impossible decisions based on the likelihood of survival would be a difficult exhibit in a wrongful-death case,” Seifert said. “If written at all, it should be written very carefully” and vetted by lawyers and risk managers.Partly with this in mind, hospitals are preparing to allocate limited resources to patients, including time with doctors and nurses and access to ventilators, said Allison Hoffman, a professor at the University of Pennsylvania who specializes in health care law and policy. Sticking to the playbook and applying its standards consistently can help protect health care providers in court, she said.At the same time, Hoffman said, “they’re tying to look at what is reasonable and customary in uncharted territory.”Health care lawyer George Indest said he’s confident of his clients’ position.“Every hospital out there has a mass casualty plan for a plane crash or a tornado or something like 9/11,” he said, referring to Joint Commission standards, and conducts regular drills on “who to pass on, who to send to another facility, who to put aside until later. It’s probably just never been expected that something of this nature would happen.”Read More: Hospitals May Need More Than a Brief Privacy WaiverTriage policies should spell out which types of patients get access to which resources when a hospital is rationing in a crisis, Harvard’s Shachar said. That means allocating services without discrimination and based on urgency, because that’s what judges and juries will ultimately be able to understand, even in the face of grieving plaintiffs, she said.On Saturday, the U.S. Department of Health and Human Services’ Office of Civil Rights fired off a bulletin warning that “persons with disabilities should not be denied medical care on the basis of stereotypes, assessments of quality of life, or judgments about a person’s relative ‘worth’ based on the presence or absence of disabilities or age.”Hospitals and doctors are focused on care right now, as they should be, said Sean Zabaneh, a lawyer with Duane Morris LLP in Philadelphia who represents them in court.Still, he said, they should be “making sure they have insurance coverage in place that is applicable to the new circumstances that are becoming more normal every day as a result of the pandemic, and staying up to date on the quickly evolving legal standards and legislation.” Lawmakers could pass legislation to protect health care providers that adhere to the standard of care, he added.Litigation by families of those who lose out in triage is only a matter of time, said health care attorney Andrew Wachler. He said he expects such lawsuits to be filed shortly after the contagion’s peak.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The stimulus bill will offer the much-required financial relief to COVID-19-plagued hospitals and lead to their share price appreciation.
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Stocks of hospital companies display a persistent downtrend as they put elective procedures on a back burner to brace up for the fight against a potential spike in coronavirus cases.
(Bloomberg) -- With the coronavirus pandemic expected to test the limits of the U.S. health-care system, publicly traded hospitals sacked with billions of dollars in debt are the most susceptible to further losses in their share prices, according to JPMorgan.“The next 30 days will be critical” as they cope with an anticipated surge in admissions, diagnostic requests, drug prescriptions and increased need for ICU capacity and staffing, analysts including Gary Taylor and Chris Schott wrote in a research note on Friday. At the same time, hospitals’ revenue will be crimped by the deferral of elective surgeries, the analysts wrote.The outlook for Community Health Systems Inc. and Tenet Healthcare Corp., two of the most indebted hospital companies, is particularly precarious as they are susceptible not only to the pressures of the Covid-19 virus but also to the risk that the outbreak will tip the economy into a recession, according to the JPMorgan analysts. If more Americans lose their jobs, the hospitals could see more patients covered by Medicare and Medicaid, which are less profitable, as well as an increase in unpaid bills.Community Health has outperformed S&P mid caps with more than a 2% gain this year. After a recent refinancing in January, the next key debt hurdle for the company is over $5 billion that comes due in 2023, according to Bloomberg Intelligence analyst Mike Holland. The company has more than $12 billion of debt on its balance sheet.Burdened by more than $14.5 billion in debt, Tenet’s stock has dropped more than 50% so far this year. Baird analysts pointed out that Tenet has far more exposure to higher paying elective surgeries and could be hurt more than peers as those procedures taper off in favor of emergency room visits.“One important point to remember that like politics, hospitals are local,” BI’s Holland said in an email. They “have large asset portfolios with meaningful geographic diversity,” that could protect them if individual facilities get overburdened. Admissions could see some weakness in the first and second quarter, “but it’s not going to crush these leveraged providers,” he said.Even the nation’s largest publicly traded hospital company, cash-rich HCA Healthcare Inc., could feel some pressure on its earnings before interest, taxes, depreciation and amortization, JPMorgan said. HCA has slid more than 30% this year. And while it might not have hit the bottom yet, JPMorgan recommends HCA along with the insurer Cigna Corp. as good investments for those with a 12-month timeline. Analysts also favored the insurers UnitedHealth Group Inc., Humana Inc. and Centene Corp.For health insurers “fear could exceed virus costs,” at least in the near term. But if U.S. hospital admissions top one million and deaths exceed 100,000 the impact to managed care organizations could become significant. The S&P 500 Managed Care Index has fallen about 15% so far this year, compared with the broader market’s 23% drop through Thursday. The Democratic presidential primaries have whipsawed managed care shares as voters contemplated candidate platforms that would have potentially done away with private insurance.Analysts at Cowen also stepped in to say while they expected volatility for the insurers on recession fears, the virus would not “materially impact” this year’s earnings. Cowen said its analysis overestimated on tests for the virus but didn’t include “any assumption on potential offsets to medical costs such as postponed elective procedures, or in-office visits that were postponed or converted to telehealth.”For other providers, JPMorgan said home health demand as well as labor costs may jump, while “long-term care facilities could experience a fear-induced period of reduced occupancy.”To contact the reporter on this story: Cristin Flanagan in New York at email@example.comTo contact the editors responsible for this story: Catherine Larkin at firstname.lastname@example.org, Richard RichtmyerFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Acadia Healthcare (ACHC) is well poised for growth on several organic and inorganic growth efforts in U.S. business and the ongoing sale proceedings of U.K. operations.
There's been a notable change in appetite for Tenet Healthcare Corporation (NYSE:THC) shares in the week since its...
Tenet Healthcare's (THC) fourth-quarter results reflect improved performance of Ambulatory Care and Hospital segments, offset by poor performance of Conifer segment.
Tenet (THC) delivered earnings and revenue surprises of -1.98% and 1.10%, respectively, for the quarter ended December 2019. Do the numbers hold clues to what lies ahead for the stock?
Tenet Healthcare's (THC) Q4 results are likely to reflect higher revenues, aided by its Hospital and Other Operations as well as Ambulatory segments, partly offset by lower admissions.