Goldman plans variable-coupon CDs on Momentum Builder Multi-Asset

By Toni Weeks

San Luis Obispo, Calif., Feb. 7 - Goldman Sachs Bank USA plans to price certificates of deposit due Feb. 25, 2021 linked to the GS Momentum Builder Multi-Asset 2 ER index, according to a term sheet.

The index measures the extent to which the performance of the exchange traded funds included in the index outperform three-month Libor. The index rebalances monthly, and sometimes daily, from among 18 ETFs that track U.S., international, developed and emerging equity markets, commodity markets, real estate markets and fixed-income assets.

Interest will accrue at a fixed rate of 2.5% during the first year. After that, the coupon will be the greater of (i) par times the index return, as measured from the pricing date to the applicable annual determination date, divided by the number of coupon payment dates that have occurred up to and including the relevant coupon payment date and (ii) 0.25%. Interest is payable annually.

The payout at maturity will be par plus the final coupon.

The CDs (Cusip: 38147JTD4) are expected to price on Feb. 24 and settle on Feb. 27.

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

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