How Goldman Is Hedging For "A Credit Tail Event"

Last week, as the world was finally waking up to the dangers of rehypothecated loans and private credit lending gone wild (thanks to First Brands, Tricolor and more recently, Zions and Western Alliance getting monkey-hammered for doing zero due diligence on shady California loans which are now marked at zero), Goldman's otherwise sanguine credit trading desk led by Abel Elizade, sent a note to clients saying "our models say... no bueno... we'd add shorts here."

For those who missed the note, here are the three main charts that should spook the living daylights out of any credit trader, starting with Goldman's composite trade score: