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I thought this was an interesting answer from CFO David Viniar:

Michael Hecht - Banc of America

I just wanted to follow up on FICC. You guys noted the record results in credit and mortgages. I was just wondering if you could talk a little bit more about the traction there in terms of it being more environmental versus share gains? Particularly in mortgages, are you seeing the best traction in sub-prime versus prime versus commercial or non-U.S.?

David A. Viniar

I think we have handled the turmoil in the market pretty well. Again, in mortgages, you have to remember to size it, and I've talked about this, so with sub-prime first. Sub-prime is part of mortgages, which is part of FICC, which is part of trading, which is part of Goldman Sachs. So the size of mortgages in all of Goldman Sachs is modest, while the business is important, like all of our businesses. Credit businesses are a little bit bigger than the mortgage business, but we really haven't seen any contagion to the credit markets. The credit markets continue to be quite robust. Credit spreads continue to be tight. There continues to be a lot of liquidity in those markets.

Courtesy of Seeking Alpha.

Posted by edelfenbein at March 13, 2007 10:09 PM