Goldman Sachs(US:GS) Jin Shi Shu Ju·2025-08-01 10:03Group 1 - Goldman Sachs credit strategists are urging clients to hedge risks as the yield premium on global corporate notes has narrowed to its lowest level since 2007 [2][3] - The narrowing yield premium on global investment-grade notes has reached 79 basis points, the lowest since July 2007, just before the global financial crisis [3] - Despite the significant narrowing of credit spreads and the S&P 500 reaching a record high, Federal Reserve officials have avoided signaling imminent rate cuts, indicating a need for more data to assess inflation risks [3] Group 2 - Goldman Sachs economists still expect the Federal Reserve to cut rates by 25 basis points in September, October, and December, with two additional cuts anticipated in 2026 [3] - The report highlights that trade policy has become more predictable compared to March and April, allowing the market to significantly lower the pricing of recession risks [3] - As investors begin to digest the differentiated impacts across the supply chain, the effects will become increasingly important through industry-specific variations [3]