Tavakoli Structured Finance, Inc.

The Financial Report

By Janet Tavakoli

Bloomberg’s Glitch Highlights Larger Issues


A prime example of why you shouldn’t rely on one pricing source is Bloomberg’s Dow-at-zero blooper.

Read More »

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.

Read More »

Iran: When Money Dies

What happens when a country’s currency is in freefall? You need look no further than current turmoil in Iran to find out. Meat is a luxury item. People are hoarding food because prices are skyrocketing. Relative to the dollar, the rial dropped 60% in eight days including a drop of 18 percent on October 1. Yesterday the rate was 36,100 to the dollar, but you couldn’t trade the rial for dollars. In other words, the currency stopped being convertible.

Read More »

Beware of “Innovative Investments” and “Post Box Cricket”

The web is filled with scam artists. An outfit calling itself “Innovative Investments” started a crowdfunding campaign for their “Post Box Cricket Project” and made the following false claim wherein it implied a business relationship with me in something called a “PR Buzz” press release (another outfit I never heard of before).

Read More »

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

Read More »

Art Loans as Collateral for CDOs?

Janet Tavakoli

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

Read More »

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.

Read More »

Expert Witness: Credit Derivatives and CDO Litigation

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.

Read More »

Top Financial Journalists of 2014

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

Read More »

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.

Read More »

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.

Read More »

Unveiled Threat

Unveiled Threat 150x150

In September 2014, Tavakoli asked His Excellency Iyad bin Amin Madani, Secretary General of the Organization of Islamic Cooperation (OIC), why criminals from so many different countries and cultures continue to band together in the name of Islam to commit mayhem and murder authorized by the highest levels of Islamic clergy.

He dodged the question.

Unveiled Threat is her response based on her personal experiences and study of the roots of terrorism.

Read More »

Eric Holder Indicts Jon Corzine (Satire)

AG Holder spent part of his summer in Ferguson, while Jon Corzine played in the Hamptons. It was a good thing Ferguson reminded Holder about New Jersey, and it was timely that James Woods reminded him about equal justice under law, otherwise we might have a two-tiered system of justice where connections and campaign contributions can ensure immunity from criminal prosecution.

Read More »

Predators Prosper, Prey Perish


Almost six years after the financial crisis, JPMorgan, Citigroup, and Bank of America face fines of around $12 billion each for their role in mortgage malfeasance. In the context of the damage done and the bailout money poured into banks; the fines are miniscule and won’t even cover the damage done in one or two blighted areas.

Read More »

China and Russia to Cooperate in Joint Credit Rating Agency

The global financial community is disappointed with absence of an appropriate U.S. response to the financial crisis, and today there is prudent distrust of our methods. Russia and China announced an independent move to form a joint credit rating agency. They will also engage in talks about joint management of gold and foreign currency reserves.

Read More »

Next Page »