Goldman Is Already Claiming Victory On One Of Its Top Trades For 2013

Goldman Is Already Claiming Victory On One Of Its Top Trades For 2013
News
Like Us On Facebook
Like Us On Facebook

Goldman Sachs is already closing the trade recommendation, barely a day into 2013. One of the recommendations was taking a longer position in the high yield market by shorting CDX HY Series 19, an index of credit insurance on high-yield debt.

That trade was actually introduced on November 19th, and recognized as the “top trade” of the year in a memo to Goldman Sachs clients on December 4th.

Since that, the CDX HY Series 19 index has fallen exponentially. Charles Himmelberg, a Goldman credit strategist says that regardless of the fact that they are already closing out the trade recommendation, it’s their “highest conviction call in 2013.”

In a note today, Himmelberg wrote: “While our top trade has hit its target somewhat sooner than we had expected, HY remains our highest conviction call in 2013.

At 439bp, synthetic HY spreads are trading inside levels last seen in the first quarter of 2011.

This has clearly eroded valuations, but we still expect HY spreads (both in the cash and synthetic markets) to grind tighter this year, especially once we are past the fiscal headwinds of the first quarter.”

Time will only tell if Himmelberg is right.

Wentworth Jones | Elite. 

Share Tweet
React
Like Us On Facebook
Like Us On Facebook

Contributing Writer

Elite Daily is a medium for people tired of disingenuous content; we have sought to create a space where stimulating, applicable content can reach a like-minded audience.

More In News

World Sean Levinson

Blackmailers Threaten To Unleash Ebola If They Don’t Receive Ransom

The Czech government has received emails from people threatening to infect the public with Ebola unless a ransom of one million euros in Bitcoin is paid. The anonymous blackmailers claim to have obtained the virus from Liberia and warn that if their demands aren’t met, Ebola will be unleashed in Prague and then to the rest […]

World Gillian Fuller

Heart-Shaped Cloud Floats Above Bride And Groom At The Altar (Photo)

Noticing a heart-shaped cloud floating above you and your significant other on your wedding day is probably a good sign for what’s to come in the years ahead. So congratulations are definitely in order for John and Jessica Hardesty because on their wedding day, that’s exactly what happened. The outdoor ceremony, held in Idaho, took […]

World Adam Pliskin

Twins Spend $20K On Plastic Surgery To Make Sure They Stay Identical

Twin sisters Sara and Emma Koponen do everything together. They work out together. They eat together. They have even had identical plastic surgeries. The Swedish sisters are 25 years old and have spent over $20,000 on plastic surgery in order to change their bodies while looking exactly the same. They’ve had three boob jobs a […]

World Sean Levinson

People In Africa Are Being Urged To Use An Actual ‘Ebola Handshake’

The United States Ambassador to the UN, Samantha Power, has revealed what is now known as the “Ebola handshake,” displaying how anyone in the countries most affected by the outbreak should greet each other. Among those she’s demonstrated the new greeting with, Power touched elbows with Liberian President Ellen Johnson Sirleaf at a press conference on Tuesday. […]

Also On Elite

World

Real-Life Batman Visits Sick Children With His Homemade Batmobile (Photos)

Bruce Wayne hid behind his Batman mask, but real-life superhero Zac Mihajlovic isn’t afraid to show his face. That’s because he is  fulfilling the wishes of sick children across Australia. Mihajlovic, 29, spent two years building his very own Batmobile from scratch. The street-ready vehicle is an exact replica of the one shown in 1989’s […]

Sports

Adrian Peterson May Have Used Charity Money To Fund An Orgy With 4 Women

At a time when Adrian Peterson’s character has been facing many questions, his past continues to offer up shady answers. The Star Tribune, Minnesota largest newspaper, published a report this morning that scrutinized Peterson’s role as the face of the Minnesota Vikings franchise, the financials of his charity (All Day Foundation) and the running back’s […]

World

A Man’s Prostate Cancer Risk Is Lower If He Sleeps With Over 20 Women

Sex is healthier than you ever could have imagined — if you’re a straight male. Researchers from the University of Montreal monitored over 3,200 men between 2005 and 2009 to study the relationship between sex and the risk of developing cancer, the Telegraph reports. They were shocked to find that those who had slept with […]

Dating

10 Crazy Things That Happen When You’re Falling In Love

We sing about it, write about it and watch movies about it, but when you think about it, falling in love is crazy and maybe even weird. It makes us feel and do things we usually wouldn’t under any other circumstances. First of all, it physically affects our hormones and brain. In fact, scientists have shown […]

World

Slavery Still Exists In The US, You Just Can’t See It

Prior to the Civil War and the ratification of the Thirteenth Amendment, slavery was a very common and accepted aspect of American society. Indeed, slavery was practiced unabashedly for hundreds of years. During this period, it would not have been uncommon to encounter slaves working openly on farms and plantations in many parts of the […]