More On Yellen’s Invisible Bubbles: Meet Goldman’s FIGSCO—or “Fixed Income Structured Covered Obligation”
Perhaps as a signal that the bubble's end is near, The Wall Street Journal has now debuted the ultimate in structured finance opacity. Apparently Goldman will soon be offering a new structure called "Fixed Income Global Structured Covered Obligation" (FIGSCO ?) that may come to market in September. The nifty feature for this synthetic "asset" is that the reference pool of securities on which it is based can apparently change anytime and without the approval of investors.