Goldman Sachs Group Inc. has exited five of six top trading strategies for one year afterwards they were thwarted by financial-market turmoil linked to signs of a slowdown in global economic growth.
The New York-based bank closed its demand dollar strength versus a similarly weighted basket from the euro and yen, recording a potential lack of about 5 percent, Charles Himmelberg, chief credit strategist, wrote in a note to clients Tuesday. Goldman has also ended a bet on five-year five-year forward Italian sovereign yields versus their German counterparts for a lack of about 0.5 percent, Himmelberg wrote.
“Markets have started out now by aggressively de-risking, apparently owing to fears that the recent slowdown in global growth could descend into recession,” Himmelberg wrote. “Financial credit spreads are spiking, especially in Europe, possibly signaling a reactivation of systemic risk concerns.”