Goldman Sachs informs clients eager to short leverage loans that their products are not yet ready.

2026-04-11 22:31:06

Goldman Sachs has informed clients eager to short leveraged loans that the firm is still developing a product to short this $1.4 trillion market. Goldman has been pitching total return swaps (TRS) to hedge funds, a derivative that allows clients to profit from falling loan prices without actually holding the underlying debt. As concerns about artificial intelligence (AI) potentially disrupting the industry intensify, debt in the software sector has been sold off, and investors are actively seeking profit opportunities.
Sources familiar with the matter say Goldman has told clients that, due to ongoing considerations of other factors, the product is not yet ready for launch. The sources also indicated that Goldman may need to pause the plan to further revise related documents. They added that the product has not yet been used in any trades.

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