Goldman Warns High-Yield Bond Surge Is Overwhelming Investors

Companies are selling many bonds to borrow money.

Investors are having trouble absorbing all these new bonds at once.

This is especially true for riskier high-yield bonds.

Goldman Sachs says the extra return investors want for holding these bonds has increased.

A very large Paramount Skydance borrowing plan is adding to the pressure.

Higher interest rates are also making investors more cautious.

Some investors still like corporate bonds because they offer attractive income.

Goldman says artificial-intelligence projects have also created a large amount of new borrowing.