Wednesday, April 3, 2013

The New New Thing: Goldman Is Going To Start A New Type Of Fund For Its Rich Clients




According to BI: "....Officially, this was the "getting rid of things we aren't allowed to have anymore" stage: hedge funds, private equity funds, prop trading outfits. Goldman was a big leader in shedding the stuff they figured was taboo even before the final rules were written. And now we've entered the next stage, the "building new things that we think we can have" stage. In this stage, Wall Street firms will attempt to do things that are a lot like what they used to do — but in new ways, using new kinds of legal loopholes because the old ones were sewn shut with Volcker thread.

Goldman is once again taking the lead in this business. Ordinary folks will think this means Wall Street is getting around the Volcker Rule. But that's why they are so ordinary. On Wall Street this is called "compliance."

The new thing Goldman is going to start doing is running a credit fund for wealthy customers that will invest in the unrated debt of mid-sized companies. This will replace the old thing Goldman did to run a credit fund for wealthy customers that wanted to invest in risky debt. The old things at Goldman were called "hedge funds." The new thing is called a "business-development company."

More?  Check out http://www.businessinsider.com/goldman-sachs-liberty-harbor-capital-llc-2013-4

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