Goldman Says High Yield Sell Off Foretold In Leveraged Stock Prices

The sell-off in the credit market might be baked into the cake, says a new Goldman Sachs report, as it raises a potential new consideration metric for equity investors as a divergence grows. Goldman says high yield credit meltdown was seen in relative value spreads of leveraged vs un-leveraged stocks The sell-off in high-yield credit has been unique from several perspectives, but perhaps was most notably benchmarked by the closure of a Third Avenue bond mutual fund that is credited with sparking a sell-off in the credit market. The trend was notably cheered on by legendary hedge fund investor Carl…