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Goldman Sachs Pitches Hedge Funds New Swap Trade to Bet Against Software Loans Amid AI Fears

Goldman Sachs Pitches Hedge Funds New Swap Trade to Bet Against Software Loans Amid AI Fears

Goldman Sachs is offering hedge funds a way to go long or short on corporate loans, according to a person familiar with the matter who spoke to Reuters. The new angle: a total return swap—this derivative lets investors bet on a loan’s price swings without actually holding the debt. No trades have gone through yet. AI-related jitters are filtering into credit, with software-sector loans on the radar. Goldman said it partners with clients on trading ideas across asset classes, regardless of market backdrop.
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