Sunday, May 02, 2010

Goldman Sachs Shares, Bonds Slide On Criminal Probe -

First the disclosure: SIMM, the student run fund that I oversee owns Goldman.

That said it is troubling that not only the equity of falling in value, but the debt as well.

3rd UPDATE: Goldman Sachs Shares, Bonds Slide On Criminal Probe -
"In the credit default swap markets, the cost of buying protection on Goldman Sachs debt rose sharply; for $10 million of Goldman Sachs bonds, 5 years of insurance protection cost an annual amount of $165,000 Friday afternoon, according to Phoenix Partners, a New York broker, compared with $130,000 on Thursday.

Goldman's bonds were among the most active, with the 5.375% notes due 2020 trading at volumes more than sixtimes greater than the next-highest traded note. The risk premium on the bonds widened 20 basis points to 204 basis points, or 2 percentage points, over comparable Treasury yields"

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