Why are the interest rates different for Cash Trust and Investment Notes?
The interest rate for Goldman Sachs Investment Notes is declared in advance, whereas the Goldman Sachs Cash Trust pays an income rate (not interest) and it is not set in advance. The Goldman Sachs Cash Trust is comprised of a pool of funds that is invested in money market securities and financial instruments. Each day the net income receivable is calculated on the Trust’s investments, the Trust’s expenses are deducted and the amount is divided by the number of units on issue at the close of that day, resulting in the income entitlement for each unit expressed as the income rate.
Related Questions
- There are lots of people who advertise that they will pay cash for our house. What is so special about The Intercoastal Investment Trust?
- How is this different than buying property from a real estate agent or buying into a REIT (Real Estate Investment Trust) with a broker?
- Why are the interest rates different for Cash Trust and Deposit Notes?
