Goldman Sachs Recommends Bond Puts as Effective Hedges Against Rate-Shock Scenario
Goldman Sachs has identified bond puts and long-dated payer options in euros and dollars as effective hedges against a potential rate shock, amid rising uncertainty over the Federal Reserve's policy path under Chairman Kevin Warsh. The bank noted that recent hawkish signals from the FOMC have increased volatility in front-end rates despite lower oil prices easing recession concerns.
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Topics: bond puts Federal Reserve policy Goldman Sachs analysis rates shock hedge