Jinshi data news on January 13th, Goldman Sachs Group strategists said that the significant decrease in financing spreads this year indicates a change in institutional investors' positions in stocks as the market reconsiders the Interest Rate path of the Federal Reserve. They stated that the financing spread (measuring the demand for long positions in stock derivatives through swaps, Options, and futures) has dropped from about 130 basis points at the end of December last year to around 70 basis points. Derivatives research director John Marshall's team stated in a report to clients: "In our experience, significant short-term Fluctuation in funds almost always means a change in the demand trend of professional investors. We believe that in the past few weeks, pension funds, asset management companies, Hedging funds, and CTAs have all been net sellers." In an earlier report this month, Marshall has already pointed out the issue of financing spreads, calling it "an important warning signal for stock investors".
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
Goldman Sachs: The decrease in financing interest rate spread indicates active stock dumping.
Jinshi data news on January 13th, Goldman Sachs Group strategists said that the significant decrease in financing spreads this year indicates a change in institutional investors' positions in stocks as the market reconsiders the Interest Rate path of the Federal Reserve. They stated that the financing spread (measuring the demand for long positions in stock derivatives through swaps, Options, and futures) has dropped from about 130 basis points at the end of December last year to around 70 basis points. Derivatives research director John Marshall's team stated in a report to clients: "In our experience, significant short-term Fluctuation in funds almost always means a change in the demand trend of professional investors. We believe that in the past few weeks, pension funds, asset management companies, Hedging funds, and CTAs have all been net sellers." In an earlier report this month, Marshall has already pointed out the issue of financing spreads, calling it "an important warning signal for stock investors".