GS bulldozes boundaries with triple recourse dynamic obligation

Goldman Sachs is selling a bond backed by a wide variety other assets, but fusing it with covered bond technology in a product that aims to put distance between it and the tainted collateralised debt obligations of the pre-crisis era. Investors in the triple A product will have recourse to a pool of fixed income assets that are valued and resized daily, as well as a claim on Goldman and Mitsui Sumitomo Insurance Group. The structure, which offers Goldman a way to fund its long term assets, could potentially be used by other banks that don’t originate consumer assets.