Kingdom of Heaven
Would you like to react to this message? Create an account in a few clicks or log in to continue.

Kingdom of Heaven

Forum for the alliance in the online game called stargatewars.
 
HomeSearchLatest imagesRegisterLog in

 

 Goldman Urges Bet Against Euro Junk Debt

Go down 
AuthorMessage
hurricanemaxi
Private
Private



Posts : 18
Join date : 2011-11-15

Goldman Urges Bet Against Euro Junk Debt Empty
PostSubject: Goldman Urges Bet Against Euro Junk Debt   Goldman Urges Bet Against Euro Junk Debt Icon_minitimeThu Dec 01, 2011 9:46 am

Goldman Sachs Group Inc., after this year’s losing endorsement of U.S. bank stocks, recommends as its top trade for 2012 a bet against European high-yield corporate debt and forecasts a “deeper recession” for the region.

The fifth-biggest U.S. bank in terms of assets recommended in a research note that investors speculate on the rising cost of insuring against the default of European junk bonds by using the Markit iTraxx Crossover Index of 50 companies with mostly high-yield credit ratings. The gauge of derivatives will climb to 950 basis points, or 9.5 percentage points, from 770 basis points, according to Goldman Sachs, which urges investors to exit the trade if the index falls to 680 basis points.

“The ongoing shocks from the region’s sovereign crisis -- and policy responses to them -- are likely to be the biggest determinant of the outlook over the next few months,” Dominic Wilson and Jan Hatzius, economists at Goldman Sachs, wrote in the research note, published today.

Goldman Sachs said a year ago that the U.S. economy would expand 2.7 percent in 2011, and U.S. bank stocks, junk bonds, commodities, Japanese equities and China’s currency were its top recommendations. America’s gross domestic product is forecast to grow 1.8 percent in 2011, according to the median forecast of 63 economists in a Bloomberg News survey.
Drop in Financials

The Standard & Poor’s 500 Financials Index has lost 18 percent this year in the worst performance among 10 industry groups. U.S. banks, measured by the 24-company KBW Bank Index, have fallen 26 percent on a total return basis.

America’s high-yield corporate debt has returned 1.4 percent as of yesterday, according to Bank of America Merrill Lynch index data. The Standard & Poor’s GSCI Total Return Index of commodities has gained 1 percent. Japan’s Nikkei 225 Stock Average has dropped 16 percent, while China’s yuan has appreciated 3.6 percent against the dollar this year, according to the China Foreign Exchange Trade System.
solar panel
japanese matchmaking services
Back to top Go down
 
Goldman Urges Bet Against Euro Junk Debt
Back to top 
Page 1 of 1

Permissions in this forum:You cannot reply to topics in this forum
Kingdom of Heaven :: General Section :: Chat-
Jump to: