Home Tags Gs
Goldman Sachs is looking to raise a fund of up to $10 billion to serve cash-strapped companies hit by coronavirus, new report says
Goldman aims to offer checks worth hundreds of millions of dollars to keep firms afloat until the economy returns to normal activity.
A Goldman Sachs survey of big-money investors found that half think the stock market has further to fall
Of the 1,800 institutional investors surveyed by Goldman, roughly 75% still think the S&P 500 is in a bear market.
Declines across the energy, consumer discretionary, and industrial sectors will most-significantly weigh on the broad index, Goldman said.
The Fed is powerless to stop the market’s riskiest debt from getting downgraded and defaulting, Goldman says
The bank's baseline scenario sees the 12-month trailing default rate jumping to 13% through 2020 and $555 billion in bonds downgraded to junk status.
"Sky-high jobless claims numbers" and the $2 trillion stimulus bill contributed to Goldman's forecast of "a deeper trough" and "a bigger rebound."
Goldman Sachs: 4 key differences make the coronavirus-fueled bear market more worrisome than past slumps
Though rate cuts were helpful in past bear markets, historically low rates and widespread quarantines stifle their effectiveness today, Goldman said.
The bank's "key question now" is whether S&P 500 profitability can rebound in a V-, U-, or L-shaped trend as the coronavirus risk grows.
The virus initially dragged on the world's tourism and travel industries, harming revenue outlooks for hotel, airline, and cruise companies.
The coronavirus' "financial and societal devastation" will drag the S&P 500 to its lowest level in four years before a sharp recovery, Goldman said.
Goldman Sachs officially predicts a coronavirus-driven recession will hit the US, sees GDP shrinking 5% in 2nd quarter
The coronavirus' hit to economic activity will most intensely drag on the travel, entertainment, and restaurant sectors, Goldman analysts wrote.