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The Goldman Sachs Group, Inc. has introduced callable fixed rate notes set to mature in October 2027, featuring a 4.55% annual interest rate for investors. These notes, issued under the company’s Medium-Term Notes Series N program, are scheduled for issuance on September 1, 2026, with maturity on October 1, 2027. Goldman Sachs holds the right to redeem the notes in full starting March 1, 2027, at par plus accrued interest, offering the firm flexibility in debt management while providing fixed income investors a short-term maturity option.
Key Highlights
- NYSE ticker: GS-PD
- Callable fixed rate notes issued by Goldman Sachs with a 4.55% annual coupon, maturing October 2027
- Expected issue date: September 1, 2026; callable by issuer from March 1, 2027, with five business days' advance notice
- Notes issued in book-entry form via the Depository Trust Company, denominated in $1,000 increments
Note Structure and Interest Payment Details
Goldman Sachs has structured these callable fixed rate notes to pay a fixed annual coupon of 4.55%, with payment made at maturity in October 2027. Denominated in U.S. dollars, the minimum investment is $1,000, with additional purchases available in $1,000 multiples. Interest accrues from the original issue date, September 1, 2026, through the maturity date of October 1, 2027, calculated using the Actual/360 day count convention consistent with ISDA standards.
The notes feature a single interest payment at maturity, simplifying cash flow management for both investors and the issuer. Purchasers after the original issue date must pay accrued interest up to their purchase date. The Actual/360 day count method reflects the exact number of days elapsed divided by 360, a common practice in corporate debt markets. This straightforward coupon structure appeals to both institutional and individual investors seeking short-term fixed income opportunities.
Redemption Terms and Investor Implications
Goldman Sachs may redeem these notes starting March 1, 2027, and on the first day of each month thereafter. Redemption will be at 100% of principal plus accrued and unpaid interest through the redemption date. The issuer must provide at least five business days’ written notice prior to redemption. This callable feature allows Goldman Sachs to refinance debt if market interest rates decline or its credit profile improves.
For investors, the callable nature introduces reinvestment risk, as principal and accrued interest may be returned before maturity if the notes are called. However, the redemption terms cap the price at par plus accrued interest, limiting potential loss from price appreciation above par. Investors should assess whether the 4.55% coupon compensates adequately for early redemption risk, especially in a falling interest rate environment where reinvestment yields may be lower.
Tax Treatment and Original Issue Discount Considerations
Legal counsel has determined that these notes will be issued with a significant original issue discount (OID) for U.S. federal income tax purposes. U.S. holders must include OID in taxable income as it accrues, applying a constant yield method with compounding, regardless of actual cash receipt. This requires calculating interest income based on a constant interest rate applied to the adjusted issue price.
Upon sale, exchange, redemption, or maturity, investors generally recognize capital gain or loss equal to the difference between proceeds and their adjusted tax basis. This tax treatment combines ordinary income from OID accrual with potential capital gains or losses. Investors should consult tax advisors regarding the tax implications of these notes, especially given the short one-year maturity and OID accrual interaction.
Book-Entry Issuance and Settlement Process
The notes will be issued in book-entry form, represented by a master global note registered to The Depository Trust Company (DTC) or its nominee. Investors will hold beneficial interests electronically through DTC participants without physical certificates. Settlements will occur via immediately available funds through DTC’s standard procedures, facilitating efficient transactions.
Under this system, investors hold interests through intermediaries rather than directly. Withdrawal of notes from DTC into physical form is limited and described in the prospectus. Goldman Sachs & Co. LLC acts as calculation agent, handling interest computations and other numeric determinations. The book-entry format enhances operational efficiency and reduces administrative overhead.
Goldman Sachs Business Overview and Debt Strategy
The Goldman Sachs Group, Inc. is a leading global investment banking, securities, and investment management firm with an extensive wholesale funding program. The company regularly accesses capital markets through its Medium-Term Notes program to support operations and diversify debt maturities. Issuing short-term callable notes enables Goldman Sachs to manage refinancing risk and maintain investor relationships across market cycles.
The Medium-Term Notes Series N program, governed by a senior debt indenture dated July 16, 2008 (as amended), provides the framework for issuing debt securities with varied maturities, coupons, and features. This note offering exemplifies how major investment banks balance investor yield demands with issuer flexibility. The 4.55% coupon reflects market conditions and Goldman Sachs’ credit profile as of 2026.
Prospectus and Governing Documentation
The notes are governed by multiple documents outlining their legal and economic terms. The pricing supplement dated August 2026 specifies terms for this series and supersedes conflicting information in the base prospectus and prospectus supplement dated February 14, 2025. Investors should review all documents to fully understand their rights and obligations, as some base prospectus features may not apply.
These notes are subject to Goldman Sachs’ Senior Debt Indenture dated July 16, 2008, as amended, with The Bank of New York Mellon as trustee. The indenture defines the legal framework, trustee duties, default events, and remedy procedures. Together, the indenture, base prospectus, prospectus supplement, and pricing supplement form a comprehensive legal structure investors must understand before investing.
CUSIP and Market Infrastructure Details
The notes carry CUSIP number 38151VAG3 and ISIN US38151VAG32, serving as standardized identifiers for trading, settlement, and record-keeping. The CUSIP facilitates electronic trade processing among brokers, dealers, custodians, and transfer agents. These identifiers distinguish this note series from other Goldman Sachs debt securities.
Not listed on any exchange, the notes trade over-the-counter through dealers and underwriters. Goldman Sachs and affiliates may use the prospectus for initial sales and subsequent market-making. Secondary market liquidity depends on dealer participation and market conditions, with bid-ask spreads potentially wider than for more liquid instruments.
Non-Bank Deposit Status and Investor Risk Considerations
The notes are not bank deposits and lack FDIC or any governmental insurance. They are unsecured obligations of Goldman Sachs, without bank guarantees. Investors’ recovery depends solely on the company’s creditworthiness as unsecured creditors, without regulatory protections applicable to bank deposits.
Investors should assess Goldman Sachs’ financial health and credit rating before investing. Unlike insured deposits, these notes carry credit risk that may affect value and repayment. Changes in financial condition, competition, or regulation could materially impact credit risk and note value.
Defeasance Rights and Issuer Options
Goldman Sachs may exercise full or covenant defeasance rights, allowing the issuer to discharge obligations by placing funds in trust for principal and interest payments. Full defeasance relieves all obligations; covenant defeasance relieves certain covenants while maintaining payment obligations. These options enhance issuer flexibility in managing debt.
Defeasance may alter investor risk by substituting trust-held assets, typically high-quality securities, as the payment source. Investors should understand that defeasance can reduce exposure to Goldman Sachs’ credit risk by shifting payment responsibility to trust assets.
FATCA Withholding and Tax Compliance
The prospectus notes that Foreign Account Tax Compliance Act (FATCA) withholding may apply to payments on the notes if banks or brokers fail to provide required information to tax authorities. FATCA imposes withholding on certain U.S. source payments, including interest, if exemptions are not established. The withholding rate and applicability depend on investor tax status, residency, and account type.
Non-U.S. investors and U.S. investors holding notes through foreign accounts should review FATCA provisions carefully. The interaction of FATCA with individual tax situations can be complex. Investors are advised to consult tax professionals about FATCA implications and documentation requirements to minimize withholding.
