By Tyler Durden | 25 April 2020
ZERO HEDGE — Goldman Sachs had itself one of those patented bouts of good luck that you only see on Wall Street – for one reason or another.
The investment banking giant reportedly was in the market buying up mortgage bonds during the panic selling that hit markets last month, ostensibly before the Fed came out and said they were going to backstop every industry and every market.
The bet has “certainly made money since the Federal Reserve unveiled massive stimulus turning a crash into a rally,” according to Bloomberg.
Goldman was buying mortgage backed securities from funds that were deleveraging and were being forced to sell. Goldman charged a fee for helping other banks and funds exit their positions, as the bank was offering other parties in distress a quick way to free up cash and “escape margin calls”. […]