MonkeyBusiness

OK I assumed the hospital was funded by the pension fund , but they have not made the connection .
However the hospital’s projects could be funded with loans:
” local hospital, which is currently fully funded utilizing a standard immunization approach with non- callable bonds” . Doesn’t mean that the bonds are also not putable by the lenders to the hospital.
If the loans are put back to the hospital by lenders when rates rise , that would be a contingent claims risk.