Goldman Sachs plans seven-year CDs linked to Morningstar Wide Moat

By Toni Weeks

San Luis Obispo, Calif., May 1 - Goldman Sachs Bank USA plans to price 0% certificates of deposit due May 29, 2020 linked to the Morningstar Wide Moat Focus Target Volatility 5 index, according to a term sheet.

The payout at maturity will be par plus any index gain. If the index falls, the payout will be par.

The index allocates exposure between the Morningstar Wide Moat Focus Total Return index (the base index) and a hypothetical cash position based on the volatility of the base index over the prior 20 or 60 trading days, whichever is greater, less Libor.

Goldman Sachs & Co. is the underwriter. Incapital LLC is the distributor.

The CDs will price on May 24 and settle on May 30.

The Cusip number is 38147JEF5.

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