Goldman Concerned About Doubling Leverage, "Goodwill" On Corporate Balance Sheets

There are interesting developments on U.S. corporate balance sheets, a Goldman Sachs report observes, as a “quiet growth” of an intangible asset – a value that can disappear during crisis as most but not all investments correlate to one -- is on the rise and it is increasingly being leveraged.

Goldman Sachs: “What’s Eating Corporate America?”

“While you were sleeping,” the report sub-headline teases, “America re-levered and goodwill grew,” as it revealed that which was not being generally observed. The Goldman report, published by the equity research team November 10, looks at a factor in valuation formulas. While leverage is commonly considered when looking at...