Premium"If Oil Isn't The Solve, This Gets More Complicated", Goldman One-Delta Desk Warns Energy/Rates Beta Is Breaking Down
Tl;dr: Equities are refusing to crack, supported by an AI CapEx cycle that remains remarkably resilient. But Goldman Sachs one-delta desk-head, Rich Privorotsky, is increasingly uncomfortable with what is happening underneath the surface: oil is falling, yet rates remain under pressure, real yields are elevated, and credit is widening. If cheaper energy can no longer provide relief to rates, the market may be confronting a much more fundamental problem - governments competing with risky assets for the private savings required to finance enormous sovereign borrowing.
