Goldman to test the debt market waters

Goldman Sachs Group Inc. is set to find out just how much confidence investors still have in it with a plan to sell $2 billion in new debt without the government guarantee instituted last November.

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The sale of the 10-year notes will make Goldman the only company in the FDIC program aside from GE Capital Corp. to offer standalone debt since the sales started Nov. 25.

While enough of the fallout from Lehman Brothers Holdings Inc. bankruptcy has subsided that Goldman feels safe enough to venture out again, it's still likely to have to offer a hefty premium. Bloomberg estimates that the senior notes may price to yield 500 basis points more than U.S. Treasuries of similar maturity. Senior notes in Goldman's last debt sale on April 22 priced to yield 237.5 basis points more than Treasuries of similar maturity. - George White

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