Goldman Sachs has become a magician, making assets appear from thin air. Floating on cloud 3 Goldman’s
share of Level 3 assets surged 39 percent to $96.4 billion at the end of February from $69.2 billion in November, according to a filing with the U.S. Securities and Exchange Commission today. The ratio of Level 3 to total assets rose to 8.1 percent from 6.2 percent.
The only question we have for the almighty is, “how long can you keep these aloft”? To which the Golden one replies
“Just because an asset is defined as Level 3 doesn’t mean we’re uncomfortable with the value of the asset,” said Lucas van Praag, a spokesman for Goldman Sachs.
But it is Mish’s words of grace that ask it best:
That’s an interesting way of putting it. Why not just say whether or not you are comfortable to make things clear? And while you are at it, why don’t you explain why have a price on commercial real estate loans last quarter but not this quarter?
I’m not sure, buy let me take a stab at it: the level 2 price put a pop in that balloon!