Drop us a line! We will reply during business hours.


Fueled by low interest rates and a flurry of refundings, hospitals returned to the municipal public debt markets en masse this year, ending the drought and setting the stage for new issuance records. Bond underwriters couldn't be happier.

With still a quarter to go, 2016 volumes for fixed rate revenue bonds sold by hospitals in public offerings have already exceeded calendar 2015 volumes by 35% and are poised to set new records.


This year's frantic activity marks the third consecutive year of rising volumes following the record low issuance set in 2013. The jump in issuance is good news for municipal bond underwriters, many struggling to cope with additional oversight from the SEC and MSRB and fierce competition in the form of bank direct placements.

Much of the higher volumes are coming from large, highly-rated health providers, with "AA" category issuance through Q3 already 70% higher than 2015 calendar year. Lower-rated borrowers in the "BBB" category have also stepped up their borrowing efforts albeit at a more modest pace, up 35% from last year. In comparison, issuance in the "A" category has been relatively sedate.


The surge in volumes is due to more providers going to market with larger deals. Some providers expect that interest rates will rise over the next few months following the election, particularly if the Fed raises the target fed funds rate in December. Others have accumulated capital projects in need of funding and can no longer postpone going to the debt markets.

This material is intended for general information purposes only and does not constitute legal advice. For legal issues that arise, readers should consult legal counsel. Linking & reprinting policy. To discuss this article or HFA Partners' municipal advisory services, email or call 888-699-4830. © 2009-2017 HFA Partners, LLC. www.hfapartners.com.

Frequently Asked Questions

Notify me of new articles

To be notified by email of all new articles and newsletter issues, please register.

I forgot my login info

Your email is your user ID. To reset your password, enter your email address here.

Do you provide speakers?

HFA professionals are available to speak at corporate functions, Board retreats, and other events. To find out more, email us.

Where is HFA based?

HFA is based in Tampa, Florida. We work with acute care providers across the entire U.S.

Other questions

Send us an email.

Linking & Reprints Policy

View our policy on linking to and reprinting content published by HFA Partners.

Privacy Policy

View our privacy policy.


Register to get notifications of new articles, issues of the Hospital Finance Update, and more credits to access cost report data and bond ratings. It's quick and it's free.

Contact Us

550 N. Reo Street
      Suite 300
      Tampa, FL 33609

(813) 347-9150