Market Rates & Yields

Senior Living Bond Rates

As of

January 12, 2021

Maturity
Taxable Rates
Tax Free Rates
A
BBB
BB+
Refinancing & Expansion
Start-up
GNMA Taxable
FHA Tax-Exempt
5 Year
N/A
0.600%
1.10%
2.10%
3.00%
3.625% - 4.00%
4.50% - 5.00%
10 Year
N/A
1.240%
2.00%
2.70%
3.50%
4.00% - 4.25%
5.25% - 5.75%
20 Year
N/A
1.860%
2.50%
3.30%
4.10%
4.25% - 4.75%
5.75% - 6.125%
30 Year
2.350%
2.070%
2.70%
3.50%
4.25%
4.75% - 5.25%
6.25% - 6.75%
Index
SIFMA Index
LIBOR
Revenue Bond Index (RBI)
10 Year Treasury
30 Year Treasury
0.07
0.08283
2.560
1.100
1.850

Source: Bloomberg

Index
1 Year
3 Year
5 Year
7 Year
10 Year
Weekly LIBOR Swap Rates
0.205
0.301
0.576
0.848
1.139
Weekly SIFMA Swap Rates
0.14
0.4
0.42
0.63
0.86
Weekly SOFR Swap Rates
0.07
0.151
0.396
0.652
0.929

Source: Bloomberg

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. 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 CCRC 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. These rates would be for Fitch rated bonds since they represent the majority of HJS rated senior living bonds.

Bond rating description in Fitch https://www.fitchratings.com/products/rating-definitions#rating-scales

Refinancing & Expansion rates, as well as Start-Up rates are new issue rates. Senior Living 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.

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