Tavakoli Structured Finance, Inc.

The Financial Report

By Janet Tavakoli

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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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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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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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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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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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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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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Top Financial Journalists of 2014

This year the nod goes to Bloomberg News’ Liam Vaughan, Gavin Finch, and Bob Ivry.

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Peterffy’s HFT Solution for Genuine Market Making

Thomas Peterffy, Chairman and CEO of Interactive Brokers, proposed this solution years ago, including in testimony before the U.S. Congress.

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Nuclear Technology and Islamic States

Fifteen of the nineteen 9/11 hijackers were Saudi Arabian, two more were from the United Arab Emirates, one was from Egypt, and one from Lebanon. They were all from Arabic-speaking countries, and presumably the terrorists read Islamic scripture in the original Arabic. Muslim scholars did not unite to protest this act of terrorism. Instead, many celebrated a victory, because the Quran includes passages that permit violence to expand Islam.

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