Trump presidency upticks trickle down, some industries drop; pharma up, hospitals decline

By Colin Hanner

Chicago, Nov. 8 – After an unprecedented and dramatic U.S. election that ended early Wednesday morning, bonds in distressed debt-land reacted to the market’s expectations of a Donald Trump presidency, particularly in sectors that would benefit, or lose, from the president elect’s platform.

“Certain sectors were really ripped around today,” a trader said. “A lot of companies were afraid of Donald [Trump] repealing Obamacare.”

Among those that felt the effects were hospital groups Community Health Systems Inc. and Quorum Health Corp., which both saw steep declines in several notes.

One trader saw a 7-point decline for Community Health’s 6 7/8% notes due 2022, which settled at 70.

The 7 1/8% notes due 2020 were down “7 points and change” to 74, and rounding out the hospital group were the 8% notes due 2019, which were down 8 points to 79¾.

Quorum Health saw similar losses in its 11 5/8% notes due 2023, which were down 7 points to 61½, a trader said.

On the flipside were pharmaceutical companies that had worries eased after knowing that a Democratic White House would not pursue legal action regarding price controls, a practice that companies like Valeant Pharmaceuticals International Inc. has been accused of in the past.

Valeant, which is coming off a weak third-quarter earnings report on Tuesday, rebounded even amid all their distressing internal news.

The company’s 7½% notes due 2021 were up 3½ points to 89¼, a market source said.

© 2015 Prospect News.
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