By the end of August, Rady Children’s Hospital in San Diego is expected to replace three bank guarantees for $228 million in debt, about a year ahead of when the pledges expire.
Why now? Because as of March, banks guaranteed roughly $14.8 billion in healthcare bonds with letters of credit—which investors consider akin to insurance—with agreements that must be renewed in 2011, according to Thomson Reuters figures provided by Citigroup. That’s up from $4.3 billion in healthcare bonds with guarantees schedule to lapse this year. The figures are based on a sample of 1,112 healthcare bonds backed by letters of credit. Read more at Melanie Evans' Of Interest blog. »