Last month, Community Health Systems (CYH) announced worse than expected third quarter earnings results. Fixed income investors have seen continued stress in Community Health’s operations and as a short-term investor of 2019 bonds, I wanted to review the opportunity to invest in future maturity bonds. CYH’s 2019 bonds mature on November 15th and are currently selling for 97 cents on the dollar. Combined with the 8% coupon, new investors can book a quick 11% if the company stays solvent beyond next year.
Source: FINRA
The balance sheet for Community Health Systems showed