Goldman bulldozes fixed income boundaries with triple recourse bond

By Bill Thornhill
23 Jun 2014

Goldman Sachs is selling a bond backed by other bonds, 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 ...

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