Source: Goldman Sachs is promoting shorting corporate loan products to hedge funds.

A well-informed source familiar with the situation said that Wall Street investment banking giant Goldman Sachs is promoting a financial product to hedge funds that allows them to take short or long positions on corporate loans. The source said that this product, known as a total return swap, is a derivative contract that allows investors to profit from changes in the market value of loans. The source also said that so far, no trades have been executed using this strategy. "As a market maker, we are constantly in contact with clients, providing them with convenience for the trading strategies they want to execute. This situation occurs every day, involving many asset classes and various market environments," a Goldman Sachs spokesperson said in an email.