Goldman: Italian Bank Bailout Could Total €40 billion; Search For Yield Could Turn Into Search For Safety

Markets are about to shift from a search for yield into a search for safety, a Goldman Sachs report said one day before the S&P 500 hits a record intraday high. As troubles for Italian banks mount, the report noted the potential for a government funded "recapitalization" that could be subject to a political backlash. This all comes as the investment bank lowered its forecast target on the S&P 500 Thursday and expects central bank corporate bond buying to impact credit markets by further exacerbating the search for yield.

Goldman: Search for yield could transform into search for safety

These are odd times for markets. In the wake of a Brexit vote and public concerns over European banks, US stock markets are...