Market Rates & Yields
Senior Living Bond Rates
As of
December 16, 2024
|
Current Tax-Exempt Rates
|
GNMA TAXABLE
|
FHA TAX EXEMPT
|
A
|
BBB
|
BB+
|
Refinancing & Expansion
|
Start-up
|
|---|---|---|---|---|---|---|---|
|
5 Year
|
|
3.470%
|
3.30%
|
3.85%
|
4.35%
|
4.75% - 5.00%
|
5.75% - 5.90%
|
|
10 Year
|
|
3.730%
|
3.60%
|
4.10%
|
4.55%
|
5.00% - 5.20%
|
5.90% - 6.20%
|
|
20 Year
|
|
4.470%
|
4.45%
|
4.75%
|
5.20%
|
5.65% - 5.85%
|
6.50% - 6.75%
|
|
30 Year
|
5.700%
|
4.780%
|
4.65%
|
4.95%
|
5.40%
|
5.85% - 6.00%
|
6.75% - 7.00%
|
|
SIFMA
|
SOFR
|
RBI
|
10 YR TREASURY
|
30 YR TREASURY
|
|---|---|---|---|---|
|
2.91
|
4.38182
|
4.3
|
4.532
|
4.714
|
Charter School Bond Rates
As of
December 16, 2024
“AAA”
Charter School Indicative Tax-Exempt Rate Ranges
Maturity | MMD | BBB | BB | NR |
|---|---|---|---|---|
5 Year | 2.55% | 3.50% – 3.75% | 3.80% – 4.05% | 4.05% – 4.55% |
10 Year | 2.73% | 3.75% – 4.00% | 4.00% – 4.25% | 4.30% – 4.75% |
20 Year | 3.29% | 4.30% – 4.55% | 4.55% – 5.00% | 5.05% – 5.60% |
30 Year | 3.57% | 4.50% – 4.75% | 4.80% – 5.05% | 5.05% – 5.55% |
Indicative Mid-Market Fixed Swap Rates
As of
December 16, 2024
Index | 1 Year | 3 Year | 5 Year | 7 Year | 10 Year |
|---|---|---|---|---|---|
SIFMA Swap Rates * | 2.89 | 2.93 | 3.05 | 3.12 | 3.23 |
SOFR Swap Rates ** | 4.12 | 3.93 | 3.86 | 3.84 | 3.84 |
* Floating leg based on 7-day SIFMA with weekly resets and monthly payments.
** Floating leg based on 100% of CME Term SOFR (30-day) with monthly resets and payments.
Source: Bloomberg
Source: Bloomberg
GNMA is taxable refi plus 10 bps
The rates for Refinancing & Expansion as well as the rates for Start-up are considered to be generically fair and reasonable as of the printing of this publication. However, due to current market conditions, are subject to change on a daily basis until further notice.
The GNMA rates are from a major market participant GNMA trading desk as obtained on Monday mornings. HJS does crosscheck this rate from time to time against other major market participants. The 30yr GNMA is taxable refi plus 10 bps. The FHA Tax Exempt rates are from a MMD Scale for FHA-insured tax-exempt deals as of the previous Friday.
Methodology for calculating A through BB rates: HJS applies the appropriate spreads of each category vs. the daily published MMD municipal bond scale for the applicable industry (senior living or charter schools). The MMD municipal bond scale, which is the benchmark for the pricing of municipal bonds, represents a consensus scale for AAA bonds as provided to Thomson Reuters by multiple street traders. It is published by Municipal Market Data every day at 3:00 pm and is available on Bloomberg. The spreads are a reflection of HJS knowledge of secondary market trades and new issue scales. The rates are for a generic non-state specific financings within the subject industry and are HJS best estimation of what yield would be available in a 5, 10, 20- and 30-year maturity were a new issue to be priced. These rates are estimations, actual pricing can vary greatly depending upon the markets’ perception of the issuer and the state of issuance. Rates identified by reference to a rating category refer to the related category as published by Fitch Ratings, S&P Global Ratings, or Moody’s Ratings.
Bond Rating descriptions:
Fitch https://www.fitchratings.com/products/rating-definitions#rating-scales
S&P https://www.spglobal.com/ratings/en/about/intro-to-credit-ratings
Moody’s https://www.moodys.com/ – Solutions –> Ratings tab
Refinancing & Expansion rates, as well as Start-Up rates are new issue rates for the applicable industry. New issue rates for borrowers in specialty states are 20-30 basis points lower in yield. The refinancing and expansion rates as well as the start-up rates are for NON-RATED transactions that carry no rating from Moody’s, S&P, or Fitch and no application for a rating is contemplated. Calculations and methodology would be applied by the rating agency selected if that were to be pursued. The rates represents HJS opinion only based upon comparison to similar transactions. The rates for Refinancing & Expansion as well as the rates for Start-up are considered to be generically fair and reasonable as of posting. However, all are subject to change on a daily basis.
Disclaimer
The material presented here is for informational purposes only and is not to be considered an offer to buy or sell any security. This report was prepared from sources believed to be reliable, but it is not guaranteed as to accuracy, and it is not a complete summary or statement of all available data. Information and opinions are current up to the date of publication and are subject to change without notice. The above senior living rates are derived from yield spreads provided by the Municipal Market Data Inc. (MMD). These rates are further developed based on HJ Sims observations of transactions that took place the previous week in the primary and secondary markets for senior housing securities. The rates are HJ Sims’ best estimate of the yields available based on their ratings. We cannot guarantee these rates, as they are subject to general market conditions which includes but not limited to size and availability. The purpose of providing these rates is to offer a general overview of the senior housing securities market last week based on our experience and observations. All investments involve risk and may result in a loss of principal. Investors should carefully consider their own circumstances before making any investment decision. Testimonials may not be representative of the experience of other clients. Past performance is no guarantee of future results.
Senior Living Bond Rates
As of
November 10, 2020
Maturity | Taxable Rates | Tax Free Rates | |||||
|---|---|---|---|---|---|---|---|
GNMA Taxable | FHA Tax-Exempt | A | BBB | BB+ | Refinancing & Expansion | Start-Up | |
5 Year | N/A | 0.64% | 1.50% | 2.30% | 3.30% | 3.625-4.000% | 4.50-5.00% |
10 Year | N/A | 1.35% | 2.20% | 3.00% | 3.85% | 4.00-4.25% | 5.25-5.75% |
20 Year | N/A | 2.01% | 2.85% | 3.60% | 4.40% | 4.25-4.75% | 5.75-6.125% |
30 Year | 2.35% | 2.22% | 3.00% | 3.80% | 4.60% | 4.75-5.25% | 6.25-6.75% |
Refinancing & Expansion rates, as well as Start-up rates are new issue rates. Senior living new issue rates for Borrowers in specialty states are often 20-30 basis points lower in yield.
Index | SIFMA Index | LIBOR | Revenue Bond Index (RBI) | 10 Year Treasury | 30 Year Treasury |
|---|---|---|---|---|---|
0.11% | 0.12775% | 2.600% | 0.955% | 1.746% |
Index | 1 Year | 3 Year | 5 Year | 7 year | 10 year |
|---|---|---|---|---|---|
Weekly LIBOR Swap Rates | 0.219% | 0.315% | 0.507% | 0.717% | 0.970% |
Weekly Secured Overnight Financing Rate (SOFR) Swap Rates | 0.081% | 0.114% | 0.286% | 0.490% | 0.729% |
Weekly SIFMA Swap Rates | 0.15% | 0.37% | 0.39% | 0.57% | 0.79% |
Indicative Swap Rates, (BBB Rating Category)*
*The above senior living rates are derived from yield spreads provided by the Municipal Market Data Inc. (MMD). These rates are further developed based on HJ Sims observations of transactions that took place the previous week in the primary and secondary markets for senior housing securities. The rates are HJ Sims’ best estimate of the yields available based on their ratings. We cannot guarantee these rates, as they are subject to general market conditions which includes but not limited to size and availability. The purpose of providing these rates is to offer a general overview of the senior housing securities market last week based on our experience and observations. All investments involve risk and may result in a loss of principal. Investors should carefully consider their own circumstances before making any investment decision.
