Goldman’s triple recourse Figsco rekindles pre-crisis bank innovation

Goldman London
By Bill Thornhill
25 Jun 2014

The product innovation absent from capital markets since the credit crisis re-emerged this week through a novel triple recourse structure from Goldman Sachs that other banks are likely to adopt too, according to market participants.

The US firm is targeting its €10bn Fixed Income Global Structured Covered Obligation (Figsco) programme at covered bond investors, though the product — built largely on asset backed securities — has more in common with collateralised debt obligations.

Figsco investors will have an unsecured claim against Goldman, Mitsui ...

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