Over the past two years, many community hospitals have been preparing to access funds in the capital market for replacement or significant renovation.
Many investment bankers were saying that the period represented a great time to borrow, because the "yield curve" was flat and "credit spreads" were compressed. The flat yield curve meant that the interest rate for short-term borrowing (e.g., 5 years) were not much different than the long-term rates for 30 years. The spread compression meant that interest rates for hospitals with mediocre credit didn't differ very much from those with excellent credit.
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