Credit-Swaps Dealers Take Beating as Auctions Produce Losses (Excerpt)
Bloomberg News - April 17, 2009
by Shannon D. Harrington and Pierre Pauldin

“Clearly, if you’re a seller of credit-default swaps in an auction, you are getting your head handed to you,” Janet Tavakoli, president of Tavakoli Structured Finance Inc. in Chicago, said in an interview before today’s auction. The potential for losses because of low recoveries “was underestimated, particularly on highly leveraged companies,” she said.


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Janet Tavakoli is the president of Tavakoli Structured Finance, a Chicago-based firm that provides consulting to financial institutions and institutional investors. Ms. Tavakoli has more than 20 years of experience in senior investment banking positions, trading, structuring and marketing structured financial products. She is a former adjunct professor of derivatives at the University of Chicago's Graduate School of Business. She is the author of: Credit Derivatives & Synthetic Structures (John Wiley & Sons, 1998, 2001), Structured Finance & Collateralized Debt Obligations (John Wiley & Sons, 2008), and
Dear Mr. Buffett: What An Investor Learns 1,269 Miles From Wall Street (John Wiley & Sons January 2009)

Clients of Tavakoli Structured Finance have the benefit of proprietary consultation, which is not available in any other paid or public forum. Clients also commission proprietary research and analysis.

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