Goldman Sachs notes tied to Strategy set to pay just 22 cents on the dollar at maturity

Investors who put $1,000 into a GS Finance note linked to Strategy’s MSTR shares are on track to get about $217 back at its July 29 maturity.

MSTR’s July 24 close pushes the note deep into the downside formula in Goldman’s filing, pointing to a loss of roughly $783, or 78.3%, of the principal. Goldman Sachs & Co. LLC still controls the final calculation and can postpone the date or adjust the terms.

GS Finance issued the note, with The Goldman Sachs Group, Inc. backing the payout. Strategy’s share price decides what investors receive, but payment responsibility rests with GS Finance and Goldman. Wells Fargo Securities handled distribution, and Wells Fargo Advisors was named as a possible resale channel.

The SEC-filed pricing supplement set MSTR's starting price at $421.74 and its threshold at 80% of that figure, or $337.392. A closing price at or above the barrier would have returned $1,417, including a 41.7% contingent gain. A finish below it instead subjects the investment to MSTR's full decline from the starting price.

… Continue reading the full article at the original source below.