FT: Goldmans debt costs rise

The cost of insuring Goldman Sachs’ debt against default has risen to about the level of Morgan Stanley and Citigroup, two less profitable rivals, as Goldman’s regulatory woes take a toll on investors’ confidence and its standing on Wall Street.

The risk ascribed to the bank by the derivatives markets has risen sharply following US regulators’ filing of civil fraud charges against Goldman last month.

The cost of insuring $10m of Goldman’s debt using a five-year credit default swap (CDS) is $162,000 a year, according to Markit, an 80 per cent rise from the level before the charges were announced.

As trillions move to the next generation, GCC families face unprecedented pressure to plan succession sooner rather than later

Wealth

Succession planning in the GCC: Experts warn families can no longer afford to delay

Panellists at the Spear’s Summit highlight Abu Dhabi’s growing appeal as a base for family offices managing capital and making day-to-day investment decisions

Wealth

Abu Dhabi’s family office boom: why the emirate is attracting active global investors

Jad Ellawn joined Edwin Smith at the Spear’s Summit Abu Dhabi to share his outlook on property, education and technology investments across the GCC

Wealth

Brookfield Middle East boss: $15bn GCC portfolio growing through “contrarian” approach

Goldman’s CDSs now trade at the same level as those of Morgan Stanley, which emerged from the financial crisis in worse shape, and just below CDSs on Citi, which had to be bailed out by the US government.

To read the full story, visit ft.com