We all know why we're here: to find the best investments with the best return so that we can actually make money in this rolling practical joke we call an economy. But sometimes there are things that seem horrifying on the surface that might be good moves in at least the short term.
Goldman Sachs (NYSE: GS) has taken a serious beating in the media and in the court of public opinion. But looking at their bond profile, you'd never know it. The Goldman Sachs bond is a non-callable corporate bond with a coupon rate of 4.5 percent and a yield of 4.406 percent and a Fitch Rating of A.
And this is a good setup under most circumstances--actually, under pretty much any circumstances, it's a pretty good setup--but as is so often the case with a setup like this, there are problems. The biggest problem here, of course, is Goldman Sachs' negative public image. Considering that I just saw Lloyd Blankfein in a Flash video involving Satan looking for a replacement as CEO of Hell while going on vacation, I think public perception can still safely be described as "negative". "Inches From A Lynch Mob" may be more accurate. Plus there's the (possibly settled or in process of same) issues with the SEC that's a serious problem.
Lastly, of course, there's the major issue of overall weakness in the still-damaged financial sector. It's not easy to conside the buy and hold strategy in an industry that depends on the rest of the world not being in freefall, especially when the rest of the world either is in freefall or is slouching toward the edge of same.
But still, at least in the short term, Goldman Sachs bonds may well be one of the better buys you'll get these days.
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