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Goldman Sachs Offloads Private Loan Risk While CEO Courts Beijing

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Goldman Sachs is marketing a risk transfer deal to outside investors, looking to shift exposure from a portfolio of loans it made to private market funds — a sign the bank is actively managing its balance sheet as private credit volumes swell. Separately, CEO David Solomon traveled to Beijing for meetings with Chinese government officials. The bank's internal risk appetite indicator has simultaneously climbed to its highest reading since 2021.

Why it matters

The risk transfer move signals Goldman wants to free up capital without shrinking its private credit business — a structure that could attract institutional co-investors and reshape how Wall Street manages private loan exposure. The Beijing trip adds a geopolitical dimension: any easing of U.S.-China financial tensions could reopen a lucrative market for Goldman's investment banking and asset management arms. Rising risk appetite at the firm-wide level suggests Goldman is leaning into growth, not pulling back.

Watch next

Q2 2025 earnings season (Goldman reports mid-July): watch for disclosures on private credit volumes and balance sheet composition. Any U.S.-China diplomatic developments or trade negotiation updates in coming weeks. Federal Reserve stress test results expected late June 2025.

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