Bond Market News

General Electric (GE) announced the stake sale of over $2bn in GE HealthCare Technologies under a debt-for-equity agreement. Under this agreement, 28.75mn in GE HealthCare shares will be exchanged for debt held by affiliates of Morgan Stanley, it said. GE HealthCare spun-off from GE earlier this year, with the main goal of capitalizing on the expanding medical technology market and creating “a pure-play company at the center of precision health”. GE HealthCare recently reported a 4% decline in net income in Q1 2023 compared to the same period a year ago with its net income margin down by 1.1% during the same period as a result of interest expense.

GE’s 3.375% 2024s are trading at 97.8 cents on the dollar, yielding 6.41%.