How vol eruption blew up Goldman’s rates book
Dealers were short payer skew from corporate and hedge fund flows. Then came the Iran war.
The normally sleepy market for corporate derivatives improbably became the talk of Wall Street in April.
Losses linked to interest rate hedges sold to corporate clients are thought to have been a major factor in Goldman Sach’s fixed income, currencies and commodities (Ficc) division missing earning expectations by nearly $1 billion in the first quarter – an outcome a senior rates executive at a
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