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...

Saudi Aramco helicopter crash kills 14 nationals, state news agency says

A helicopter belonging to Saudi oil giant Aramco crashed on Sunday in Ras Tanura on Saudi Arabia's eastern coast west of the Strait of Hormuz , killing 14 nationals, the state news agency reported, adding that the cause was unknown. Aramco had resumed crude oil loadings on Friday at its Ras Tanura terminal in the Gulf after they were halted for nearly four months. "Investigations are under way, with the participation of relevant authorities, to determine the causes of the helicopter crash," the state news agency added. Saudi Arabia, the world's biggest oil exporter, has joined a rush to move cargoes after Middle East producers ramped up oil and gas output and exports ahead of an interim deal to halt the war between the United States and Iran.

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