IG Healthcare Bonds Tighter, Junk Price Vol Elevated Into 2024: 2024 Credit Outlook

Investment-grade health-care spreads may be tested in 2024 after this year's tightening, if the sector again becomes a political football as US election season nears. Down the ratings spectrum, high yield looks poised for more price volatility next year as higher costs drive distress. Though term-loan and bond issuance appears tepid in the near term, liability management from stressed issuers Bausch Health, Prime Healthcare and others with 2025 maturities may have to be addressed in 2024.