Higher-rated corporate debt might not be the best trade. Goldman weighs in on credit quality

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Why higher-rated corporate debt might not be the best trade Skip Navigation Markets Business Investing Tech Politics & Policy Video Watchlist Investing Club PRO Livestream Menu Investors are reassessing positioning within corporate credit across the quality dimensions by using rating classifications as a proxy, amid higher real rates and an elevated AI-related supply, according to Goldman Sachs. "The catalyst has been the growing tension between solid fundamentals and challenging supply technicals within certain 'high quality' rating cohorts," Goldman said in a note Thursday. While the highest rating categories in investment-grade (AA) and high-yield (BB) constitute the highest share of debt issuance historically, their longer duration profiles and thinner spreads also mean that their returns tend to be the most sensitive to higher interest rates, Goldman said. Goldman noted that lower-rated debt has been outperforming even as investors focus on quality, adding t...

Here’s Why PayPay Corporation (PAYP) Is Among the Most Promising New Technology Stocks

Here’s Why PayPay Corporation (PAYP) Is Among the Most Promising New Technology Stocks Talha Qureshi Sat, June 27, 2026 at 1:16 PM PDT 2 min read PAYP PayPay Corporation (NASDAQ: PAYP ) is one of the Most Promising New Technology Stocks to Buy According to Analysts . Recently, on June 8, Yoshitaka Nagao from Bank of America Securities maintained a Buy rating on the stock with a price target of $26. The firm noted the recent acquisition of T&D Financial Life as a strategically sound move that strengthens its long-term positioning. On June 4, PayPay Corporation (NASDAQ:PAYP) acquired a 70.2% stake in T&D Financial Life at just over 1.0x embedded value. Nagao views the price as full but fair, and notes that it is funded entirely from existing cash, suggesting no equity dilution and no strain on balance sheet flexibility. The analyst sees the addition of a savings-focused life insurer as a meaningful expansion of PayPay's digital financial platform. The firm noted that with over 74 million users already on the platform, the company is well placed to offer end-to-end financial services across different life stages. In terms of profitability, analyst Nagao believes that internalizing asset management and optimizing reinsurance arrangements should improve spread-based earnings over time. PayPay Corp. (NASDAQ:PAYP) is a financial technology company that serves users and merchants in Japan. The company facilitates mobile Payments via its app, as well as banking & lending, investment & securities, CFD trading, asset management, and credit & financing services. It also offers value-added services, such as insurance and marketing, with the option to subscribe. While we acknowledge the potential of PAYP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock . READ NEXT: 10 Good Stocks to Invest in Now and 10 Most Undervalued US Stocks According to Hedge Funds . Disclosure: None. Follow Insider Monkey on Google News . Terms and Privacy Policy Your Privacy Choices CA Privacy Notice More Info

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