Driven by inflation, bond financing has been slow and unstable during the first half of the year, according to specialty investment bank Ziegler.
After previously raising the short-term interest rate by 75 basis points, the Federal Reserve is expected to attempt to slow the market again by raising “its benchmark overnight interest rate by three-quarters of a percentage point to a target range of 2.25% to 2.50% at the end of a two-day policy meeting on Wednesday,” Reuters reported.
According to Ziegler, the issuance of senior living tax-exempt debt for the first half of 2022 was down approximately 9% from the same period last year. That compares with a change of 41% in 2021 over 2020, due to the pandemic. Total par volume was slightly below last year at nearly $1.6 billion through June 30, compared with nearly $1.8 billion for the same period in 2021, Ziegler said.
McKnights Senior Living
by Kathleen Steele Gaivin
JULY 27, 2022