Goldman Sachs has pitched hedge funds on strategies to short corporate loans, the Financial Times reports, citing several people familiar with the matter.
- Complex trades would allow hedge funds to profit from further falls in loans made to software companies
- Strategies, which were pitched on an informal basis, focus on esoteric products known as total return swaps, derivatives that would allow investors to profit if a loan price declined
- Goldman has received requests in recent weeks from clients for the swaps
- Bank has also begun informally contacting hedge funds keen to bet against the prices of loans to technology companies ...
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