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09 26 2015 | by Victor Xing | Capital Markets

Why is Goldman Sachs so popular?

There are several factors behind Goldman’s popularity (from an interest rates trading perspective):

  1. Macroeconomics.  Goldman’s chief economist Jan Hatzius was trained by the current President of the FEDERAL RESERVE BANK of NEW YORK, then Goldman chief economist William C. Dudley.  I respect both Mr. Dudley and Mr. Hatzius’ views, and GS is very strong in terms of monetary policies.
  2. Knowledgeable and professional.  I learned a lot from the Goldman salesperson who covered us.  He was humble, knowledgeable, and highly articulate with his thoughts (so were the GS traders).  GS was there when I was super junior and had few people to ask questions (this is part of long term greed – see below)
  3. Training.  My mentor who trained me came from GS, and I had a glimpse into their training program.
  4. Long term greed reduces the risk of short-term folly.  GS is dependable because it is greedy over the long haul.  Relationship comes first, then the money.  Some smaller firms do unsavory things for a quick buck (and ruin relationship as a result).  That is *less likely* to happen at GS.

Next article09 25 2015 | by Victor Xing | Capital Markets

Why is the 2-year Treasury note more sensitive to FED policy than T-bills?