Skip to content
Subscriber Only

HCA Leads Credit Swap Jump as Hearings Cast Cloud on Health Law

The cost to protect against losses on the debt of U.S. health-care companies is rising as investors hedge against potential declines when the U.S. Supreme Court rules on President Barack Obama’s landmark health law.

Credit-default swaps linked to hospital operators HCA Holdings Inc., Tenet Healthcare Corp. and Community Health Systems Inc. are poised for the biggest monthly increase since September, climbing an average 88 basis points to 604 basis points, according to data provider CMA. Swaps on HCA, the biggest U.S. hospital chain, reached the highest relative to a benchmark in more than five months on March 26, the day before a new version of the index started trading.