Investors betting on the takeover of Pittsburgh’s West Penn Allegheny Health System, whose 2007 tax- exempt junk deal is the biggest for a U.S. hospital in more than two decades, are benefiting from a four-year rally in such debt.
U.S. stocks rose to successive records during the week and the Standard & Poor’s 500 Index traded above 1,600 for the first time, extending a 2013 rally fueled as individuals and professionals alike increased bullish bets.
Facing the risk of a fourth straight summertime slowdown, Federal Reserve officials raised the prospect of increasing the monthly pace of bond buying above $85 billion to guard against any slump in growth or employment.
Plunging gold prices and the biggest drop in five months for U.S. equities presents an opportunity to increase holdings of stocks as economic and profit growth remain intact, according to money managers at Well Fargo and BPI Asset Management Inc.
The worst-performing part of the municipal market is drawing buyers as bankrupt Stockton, California’s attempt to stick investors with a loss heightens the appeal of debt backed by revenue from services such as water and electricity.