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| Photo Credit:
Dado Ruvic
Sachs has pitched hedge funds on strategies to short
corporate loans, the Financial Times reported on Monday, citing
people familiar with the matter.
The Wall Street bank has offered clients complex trades that
would allow them to profit from further falls in loans made to
software companies that have come under pressure in recent
months, the report said.
The strategies, which Goldman bankers have pitched on an
informal basis, focus on esoteric products known as total return
swaps, derivatives that would allow investors to profit if a
loan price declined, the FT report said.
A spokesperson for Goldman Sachs did not immediately respond
to a Reuters request for comment. Reuters could not
independently verify the report.
Software stocks have tumbled this year as investors worry
that rapid advances in artificial intelligence could disrupt the
traditional business models.
Traders fear that AI agents capable of performing complex
tasks across multiple applications could erode growth at legacy
software-as-a-service companies.
Published on March 10, 2026