Goldman Distressed-Debt Traders Ensnared in Market Turmoil
- Group said to have lost between $50 million and $60 million
- Bank said to replace traders and salespeople who've left
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Even Goldman Sachs Group Inc. hasn’t been left unscathed by the carnage in the market for distressed debt this year.
Goldman Sachs has lost $50 million to $60 million on its distressed-trading desk in 2015, according to people familiar with the performance. The unit suffered losses on its position in Verso Corp., a paper producer whose bonds lost two-thirds of their value this year, as well as on debt of energy companies, said the people, who asked not to be named discussing the information because it isn’t public.