Abstract: In this paper we will discuss about the cash Instruments of Goldman Sachs, a leading investment banking service provider in the world. The value of company's cash instruments are based on broker quotations and quoted market prices. Generally, Goldman Sachs' cash instruments are categorized within level 1, or sometimes level 2, of the “fair value hierarchy”.
Goldman Sachs financial instruments can be categorized into two parts: cash instruments and derivative contracts. Here we will discuss only about the cash instruments.
Goldman Sachs is one of the biggest investment banking and management companies in the world. It provides variety of services to several big financial institutions across the globe. It also offers investment-banking services to the governments of different countries.
Goldman Sachs' cash instruments are valued on the basis of broker or dealer quotations and quoted market prices. It comprises the stocks issued by the US government, liquid mortgage products, many other government obligations and several money market securities. These instruments are normally categorized within level I of the “fair value hierarchy”.
Some Goldman Sachs' cash instruments have been categorized within level 3 of the “fair value hierarchy”, they hardly have any price transparency. These are private equity, highly distressed debt and real estate investments.
On the other hand, several cash instruments like, principal-only obligations, mortgage securities, indexed debt instruments, interest-only obligations, are not considered as derivative instrument.
As of May 2007, the total value of Goldman Sachs' level 1, level 2 and level 3 cash instruments are 41,750 dollars, 56,535 dollars and 5,939 dollars respectively.