Quorum rallies as anomaly in hospitals; Community Health declines, again

By Colin Hanner

Chicago, Nov. 10 – On Thursday, sector-specific distressed-debt bonds continued to follow the shocks of U.S. president-elect Donald Trump’s election win, albeit with smaller gains and losses than the day before.

Yet, Quorum Health Corp. defied Wednesday’s downward moves by hospital groups and saw sweeping upward movement in its notes after announcing its third-quarter earnings announcement.

“Quorum was the outlier rallying,” a trader said, referring to the second-straight day of slumping for most other hospital groups.

Quorum’s 11 5/8% notes due 2023 – down 7 points during Wednesday’s trading – rebounded 10 points to reach 73, a trader said.

Traders might have been looking at Quorum’s announcement that the company plans to finalize two asset sales by the end of the year.

Notwithstanding Quorum Health, hospital groups “continued to get beat up” on Thursday, as talk of a Republican White House and Congress and conservative majority Supreme Court worried traders that the Affordable Care Act would be scrapped under a Trump presidency.

Community Health Systems Inc. repeated declines in its distressed notes, including the 6 7/8% notes due 2022, which were down 3 points to 67, according to a market source.

The 7 1/8% notes due 2020 were down 3˝ points to 70˝, and the 8% notes due 2019 saw a 2-point decline to 77 6/8.

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