Velocityshares 3X Inverse Natural Gas Etn (DGAZ)

[surehands]

GS 100 Mill loss on NG summer long play...IF GS is getting their but kicked then can you imagine what others are doing! Wow..

Goldman Sachs FICC-trading income was an unexpectedly ugly blemish on what was already a poor Q2 earnings report. And while the FDIC-backed hedge fund initially blamed the decline on lower trading revenues, lack of volatility and depressed client activity...

there was more to the story. The Wall Street Journal has uncovered what really happened: A $100 million bet on regional natural-gas prices gone awry after production problems at a local pipeline sent prices soaring, decimating Goldman’s position.


“Goldman wagered that gas prices in the Marcellus Shale in Ohio and Pennsylvania would rise with the construction of new pipelines to carry gas out of the region, said people familiar with the matter. Instead, prices there fell sharply in May and June as a key pipeline ran into problems.”


More specifically…

“Goldman’s key miscalculation last quarter was betting that natural-gas prices in the Marcellus Shale would rise relative to the national benchmark price in Louisiana known as the Henry Hub, the people familiar with the matter said.”


The quarter was the worst ever for the bank’s commodities unit, which, as WSJ notes, has been one of the firm’s most consistent profit centers, and a training ground for many of its top executives, including Chief Executive Lloyd Blankfein. The trading loss “extended a broader slump at a company once known as Wall Street’s savviest gambler.”


http://www.zerohedge.com/news/2017-08-18/real-story-behind-goldmans-q2-trading-loss-how-100m-gas-bet-went-awry