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...

Yes, there have been rows but here's how I've made moving back home work

Image source, Natasha Suman Image caption, Natasha Suman (right) with her parents, Rita and Pawan By Daniel Thomas , Lizzie Asante and Kris Bramwell Published 8 hours ago When 24-year-old Natasha Suman moved back into her parents' home in Bedford after university, she only expected it to be for a "few months" while she searched for her first job. But almost three years later, she's still there, saving for a deposit on her first home. The marketing coordinator pays towards bills but doesn't pay rent, so is able to put aside 1,000 a month in a Lifetime ISA - a tax-free account topped up by the government. That would have been impossible had she lived by herself, she says, given the "cost of living". However, Natasha admits she has "less freedom" than when she lived independently and generally does fewer "spontaneous things". She also argues more with her family than she used to, despite feeling very fortunate to live with them. "When I left home [for university], I was a very different person, and by the time I came back, I had essentially become an adult," she says. "Because of that, there have definitely been some clashes between me and my parents." 'It's been an adjustment for all of us' The proportion of people in their 20s and 30s living with their parents has increased sharply over the last three decades, as rising house prices and rents have forced many to move back in to save for their first home. But while it can be a practical way to save money or deal with the loss of a job or a relationship breakdown, it often comes with frustrations, such as feeling like you've lost your independence or even regressed to childhood. For Natasha and her parents, Rita and Pawan, flashpoints have included shared use of the family car after her own vehicle broke down, disagreements over how chores are divided, and how much time to spend together - with her parents wanting to see more of her. "It has been an adjustment for all of us. "A lot of these disagreements stem from the fact that we are now four adults living together, all with our own routines, expectations and opinions." Problems have been avoided by having conversations early on, she says. Her parents set "clear expectations" such as cleaning up after herself and making her own lunch. The family has also discussed privacy, with Natasha asking her parents to knock before coming into her room. "I tend to spend more time in my room to relax and unwind than I did before. Initially, my parents did not really understand this, but after talking about it, they have become more understanding." Image source, Caroline Bentham Image caption, Caroline Bentham has lived with her mother Mary for nearly seven years Loss of privacy is one of the most common issues adult children face when they live with their parents, says Dr Fenia Christodoulidi, head of training and consultancy at counselling service...

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