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Goldman Slashes Its Position in a Controversial CDS Trade

  • Wall Street titan caught up in trade that roiled swaps market
  • CDS position backfired as Hovnanian, Blackstone made debt deal
Views Of Goldman Sachs Group Headquarters Ahead of Earnings

Photographer: Ron Antonelli/Bloomberg

Updated on

A key player has had enough in one of the biggest credit-market tussles this year.

Goldman Sachs Group Inc. has dumped a big chunk of credit-default swaps linked to Hovnanian Enterprises Inc., according to people with knowledge of the matter. The firm cut loose months after finding itself entangled in a battle featuring Blackstone Group LP that has also invited the wrath of regulators.