NEW YORK ( TheStreet) -- Goldman Sachs ( GS) saw the spreads on its own debt widen during the quarter, causing much distress to its executives.

CFO David Viniar said during the conference call that widening CDS (credit default swaps) spreads did not affect their access to funding or change client behavior but it did hurt Goldman...emotionally.

"We hate watching them widen," Viniar said. "The widening of the CDS spreads doesn't make sense to us given how strong our capital and liquidity positions are. We kind of scratch our heads a little bit. But it really hasn't affected anything other than our emotions.We don't like seeing it but it hasn't had a big effect."

The cost to buy protection against a default by Goldman Sachs spiked from 135 basis points as of June 30 to 329 basis points by the end of the third quarter. All banks saw spreads on their debt widen amid heightened uncertainty in Europe including rival Morgan Stanley ( MS), which at one point was considered even less credit-worthy then embattled Bank of America ( BAC).

Of course, the widening spreads ended up actually benefiting banks significantly in the third quarter, thanks to an accounting quirk that requires banks to book a profit when the value of their own debt falls. JPMorgan Chase ( JPM) and Citigroup ( C) reported $1.9 billion in debt-valuation adjustment gains and Bank of America saw a pretax gain of $1.7 billion.

Goldman, on the other hand, saw only a $450 million gain from the falling value of its debt. The investment bank hedges the exposure by having close-to-offsetting positions against its spreads through a basket of peers, Viniar said at the conference call.

--Written by Shanthi Bharatwaj in New York

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