Taking a pulse on healthcare

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