Goldman Sachs cuts credit exposure to Italy by 92%
US bank Goldman Sachs has reduced by 92% its exposure in Italian sovereign debt.
According to the notification sent by the bank to both US and Italian authorities, the market exposure to Italian debt was reduced from $2.5bn in March to $191m at the end of June.
Meanwhile, Goldman Sachs increased its credit-derivative positions on Italy.
The bank’s total market exposure to Italian government and non-government securities was negative $977m at the end of the quarter, from positive $2.4bn in March.
Goldman Sachs disclosed its exposure to Italy, Greece, Ireland, Portugal and Spain, as the countries are perceived as Europe’s riskiest.
The bank had written $154.4bn in notional credit derivatives for the five countries as of June and had purchased $165.2bn billion.