Credit Market Commentary: Market Derived Signal: Can Investors Bank On Wider Spreads At Goldman Sachs? Jan 10

Standard & Poors, January 2010

Abstract
Three years ago, Goldman Sachs' CDS was trading between the 'A' and 'BBB' financial CDS benchmarks, which was below the 'AA-' corporate credit rating on the company at the time. Its CDS briefly moved wide of the 'BBB' benchmark in July and November 2007 before moving in line with the 'A' benchmark by January 2008. After another brief widening move in March 2008 toward the 'BBB' benchmark, it tightened again and was trading in line with the 'AA-' benchmark from late March through the beginning of the financial crisis in September 2008. At that time, market instability and uncertainty surrounding Goldman Sachs' credit strength caused its CDS to spike wider than the 'BBB' benchmark, which had also significantly widened. As...

Companies mentioned in this report are:
- Bank of America Corp.
- Morgan Stanley
- JPMorgan Chase & Co.
- Citigroup Inc.
- The Goldman Sachs Group Inc.

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.

- Bank of America Corp.
- Morgan Stanley
- JPMorgan Chase & Co.
- Citigroup Inc.
- The Goldman Sachs Group Inc.

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