Tavakoli Structured Finance, Inc.

The Financial Report

By Janet Tavakoli

Fed Unveils Headache Free QE Math

QE Math Tavakoli Structured Finance Spoof

Do derivatives confuse you? Do you hate bond math? We feel the same way! So we simplified your life with headache free QE math.
— The Federal Reserve Board We-Hate-Math Committee

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Expert Witness: Credit Derivatives and Securitizations

Collateralized Debt Obligation Basic Structure

Lawyers may argue either side of a case, but expert witnesses are supposed to provide opinions grounded by science, facts, and evidence.

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Comment Letter to the SEC Re: File No. S7-11-13

It is hard to fathom how the SEC took Congressional findings—and the SEC’s experience before and after the 2008 financial crisis—and came up with these proposed rule amendments without realizing it risks being branded as a rogue regulator that requires reining in by Congress.

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Hidden Bank Risks Drive Investors to Productive Assets, U.S. Treasuries, and Gold

Banks Blind Spot

Kyle Bass, founder of Hayman Capital Management, announced during his March 2013 talk to the Chicago Booth’s Global Markets Initiative that he is bearish on Japan and has engaged in $500 billion notional tail-risk trades.

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Was the First Presidential Debate Rigged?

Lester Holt asked Mr. Trump whether he supported the Iraq War, and even seemed to debate him when Mr. Trump said he had not. But Holt did not ask Secretary Clinton the same question. At the time, she was a Senator, and she voted for the Iraq War. Unlike Trump, as a Senator, she had access to better information.

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Brexit: Why should the British not reject feckless policies?

The Wall Street Point of View

At issue is self-determination, the ability to make and enforce laws. It is unwise to ignore that 1,000 years of English Common Law, a legal system that was successfully exported around the world, was on the brink of eradication.

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Donald Trump Wins, and So Do We

Whether or not you agree with Trump, at a minimum his participation is forcing other candidates to clarify their positions on illegal immigration, and other issues.

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The Great Gold Conspiracy of 1869

Twenty Years of Inside Life in Wall Street

William Worthington Fowler’s Twenty Years of Inside Life in Wall Street or Reflections of the Personal Experience of a Speculator is a joy to read.

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Facebook: The Long and the Short of It

Facebook stock is at a record high: 103.94 as of the close Nov 4, 2015.

I am a long-time critic of Facebook’s funny numbers.

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Queen Elizabeth II: Credit and Character

Character is the most important of all of the four C’s of credit: character, capacity, collateral, and capital. Character is paramount. Money cannot buy it.

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Greece and the Troika: Next Moves

All the roads ahead will be hard for Greece. Some Greek corporations have already issued scrip, due to the shortage of Euros. Handelsblatt reported that Greek banks will be tapped out by the end of the day today.

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Red Flags at Deutsche Bank (Update)

Very serious consideration should be given to a thorough independent audit and new independent stress tests for Deutsche Bank.

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Wall Street Tale of Suicides and Skullduggery

Decisions: Life and Death on Wall Street (Kindle Single Edition)

I fled the Islamic Republic of Iran with a suitcase, a thousand dollars, and no regrets. But it wasn’t easy; I had to rebuild my life from scratch. Less than ten years later, I faced a decision that threatened to erase most of what I had accomplished, and I hesitated as I weighed the consequences.

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Art Loans as Collateral for CDOs?

Janet Tavakoli

Art loans as collateral for CDOs? Illiquid subjectively valued assets; what could go wrong?

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Swiss National Bank and Foreign Exchange: Well Played!


Don’t you just love the phrase, “prepared to buy foreign currency in unlimited quantities.” Some central banks were prepared to sell in unlimited quantities, and SNB knew that when it penned its November 2014 press release.

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