US High-Yield Health-Care: 2025 Credit Outlook
High yield healthcare bond returns are on track to end the year vastly outperforming the HY index, but 2025 is shaping up to be less dramatic on the upside. We expect 2025 sector returns to moderate more in-line with the HY index, supported by limited issuance needs, high coupons, offset by policy uncertainties and a trend toward slowing rates of growth in overall healthcare spending.