Worried About Downside Scenarios? These Are Goldman's Top Credit Hedges For A Prolonged Shock

Despite the ongoing conflict in Iran and resulting elevated oil prices and tighter financial conditions, most risk asset markets have (so far) not priced in much durable additional risk premium.

In equity markets the S&P 500 still sits just 3.8% off its all-time high, and in credit markets, USD investment grade and high yield bond indices are just 6bp and 19bp wider, respectively, since February 27th, still well within the bottom historical quintile.