As we reported earlier, after several days of patiently - and bearishly - waiting for his opportunity, Goldman's head of risk and Chief Strategy Officer, Josh Schiffrin, made quite a splash just after 1pm when he announced to the bank's clients that "I’ve been negative, but now I’m bullish.  Time to start scaling in."

He is not the only one. Goldman FICC trader Paolo Schiavone has also doubled down, and in a late Monday note to clients (available to pro subs in the usual place) writes that there has been significant debate over whether we’ve reached the point of maximum pain for risk assets. As a result, the pricing of recession risk have created an asymmetric risk-reward setup in the short term. 

Below we excerpt from his note, the full thing can be found here for pro subs.