Watch the video version on YouTube

High yield investments in the healthcare sector have been navigating a complex landscape in 2025. Healthcare remains a focal point for policy changes, impacting both equity and credit markets. The healthcare high yield space offers unique opportunities, with issuers often skewing toward provider-based companies like hospital operators and specialized pharmaceutical firms. These entities, while riskier due to revenue concentration, present compelling investment prospects. However, federal policy, particularly around Medicaid, poses significant risks. While tariffs have had limited impact due to domestic supply chains, potential Medicaid cuts could directly affect cash flows.

On this episode of Insights Now, Gabriela Santos is joined by Matt Nelson, a credit research analyst covering healthcare and pharmaceuticals at J.P. Morgan Asset Management, to delve into the high yield market’s dynamics and the future of healthcare investments.

Subscribe to the Notes on the Week Ahead podcast for more insights from Dr. David Kelly: Apple Podcasts | Spotify

Watch the video version on YouTube.

This year has seen significant disruption in trade, driven by tariffs and policy uncertainty. Countries and businesses are navigating these challenges in real time to keep the flow of trade moving smoothly. On this episode, Aaron Mulvihill is joined by Andy Dacy, Head of the Global Transportation Group at J.P. Morgan Asset Management. With over 30 years of experience in the transportation sector, Andy offers a wealth of knowledge and insight. Together, they explore how the current trade and tariff turmoil is impacting the transportation sector, the ways shipping patterns have adapted to geopolitical events worldwide, the potential for reviving shipbuilding in the United States, and the exciting opportunities that exist in transportation beyond shipping.

Resources:

Subscribe to the Notes on the Week Ahead podcast for more insights from Dr. David Kelly: Apple Podcasts | Spotify

Watch the video version on YouTube

Municipal bonds have struggled so far in 2025 as increased issuance and elevated volatility have weighed on prices. However, with risks to the current economic expansion rising, the case for munis has only grown more compelling. On a tax-equivalent basis, muni yields are higher relative to Treasuries and compete with those offered by corporate credit. Additionally, the muni yield curve is steeper than other markets, meaning investors are compensated more for extending duration. At the same time, they have less credit risk. Not only do state balance sheets look healthy but across credit ratings, municipal bond default rates have been consistently lower than those of corporate bonds. All this said, the sector is not without its challenges. Federal spending cuts, tariffs and restrictive immigration policies could disrupt activity across municipalities, although these impacts will be felt differently across sectors and regions.

On this episode of Insights Now, Gabriela Santos is joined by Neene Jenkins, Head of Municipal Credit Research, to discuss Neene’s outlook for the sector.

Subscribe to the Notes on the Week Ahead podcast for more insights from Dr. David Kelly: Apple Podcasts | Spotify