Rising Yields Pose Risk to Large-Cap Pharma's Red-Hot Rally
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Large pharma’s massive rally is facing a speed bump.
For the first time in a decade, the 10-year Treasury yield is paying more than most large-cap pharmaceuticals’ dividend yields, Jefferies’ health-care specialist Jared Holz points out, which poses a risk to the high-flying sector. Druh stocks just posted their biggest quarterly gain in 18 years as investors weary of rising protectionism flocked to more defensive areas. The Health Care Select Sector SPDR ETF, for one, attracted more than $2.3 billion in the September quarter -- an all-time record for the fund.