Tavakoli Structured Finance, Inc.

Finance Books by Janet Tavakoli

Structured Finance, Credit Derivatives, and the Financial Crisis (Wiley Finance and Lyons McNamara)

RiskStructured-Finance-Collateral-Debt-Obligations-2nd-EditionCredit-Derivatives-Synthetic-Structures-2nd-EditionDear-Mr-BuffettDecisions: Life and Death on Wall Street

Twenty Years of Inside Life in Wall StreetThe Wall Street Point of ViewThe-New-Robber_baronsUnveiled Threat

 

Risk (Qualitative Finance Book 1)

Just Released! Lyons McNamara, March 15, 2015

Tavakoli’s unique insights on risk and reward: “Higher math produces the wrong answer to nine decimal places, and computers spit out the wrong answer faster. Technology churns out numbers that are astonishingly precise even when they are terrifyingly inaccurate.” Learn how to identify risk and opportunities.

  • Identify a bank’s biggest risk
  • Manage the risk of short positions
  • A new big short and how to find the next big short
  • The huge hole in the Efficient Market Hypothesis
  • The most important analysis to reduce portfolio risk
  • Red flags for fraud
  • The paramount concept omitted from texts on risk
  • The major myth in Modern Portfolio Theory
  • A “fixed income” analysis that is as important for stocks as it is for bonds
  • The leverage paradox
  • How to fix the banking system

Decisions: Life and Death on Wall Street (Inside Observer Book 2)

Lyons McNamara, April 2015  Read an excerpt here.

Janet Tavakoli’s Wall Street memoir of personal and professional decisions that reshaped financiers’ lives, drove some to despair, and changed the landscape of global finance. A short light read on heavy topics.

Praise for Decisions: Life and Death on Wall Street

“Tavakoli takes us on a scenic tour of the recent lowlights of Wall Street and the industry’s handmaidens in Washington from the perspective of an insider…demystified and rendered tragically human. It’s a compelling tale.”
Jake Bernstein, winner of the Pulitzer Prize for National Reporting

“Janet Tavakoli is a born storyteller with an incredible tale to tell. In her captivating memoir, Decisions: Life and Death on Wall Street, she takes us on a brisk journey from the depravity of 1980s Wall Street to the ramifications of the systemic recklessness that crushed the global economy. Her compelling narrative sweeps through her warnings about the dangers of certain bank products in her path-breaking books, speeches before the Federal Reserve, and in talks with Jaime Dimon.”  See: Nomi Prins’ review of Decisions.
Nomi Prins, author of All the President’s Bankers

“Good things sometimes happen in life. Janet Tavakoli’s latest book. Recommend it to all financial professionals.”
Global Association of Risk Professionals

“Merrill Debauchery Only Begins This Woman’s Tale… ‘Neither Bill nor I believed Calvi committed suicide,’ Tavakoli writes. ‘Bill joked that he’d never hang himself. It was too gruesome.’”
Bloomberg News

Structured Finance & Collateralized Debt Obligations

Wiley Finance, September 2008

Tavakoli’s contemporary finance classic is used by securities lawyers and has a valuable time stamp; it was released in the midst of the September 2008 global financial crisis. She gave advance and real-time coverage of “the big short,” shorting of the ABX index, and the fraud-riddled reference obligations that made this trade the windfall it was. Michael Burry told Congress he read the first edition of this book along with Tavakoli’s Credit Derivatives, before he put on “the big short” mentioned in Michael Lewis’ post-crisis book about the trade. Tavakoli’s second edition explains those trades and the financial meltdown caused by derivatives combined with phony securitizations and fake ratings. State-of-the-art look at the CDO and structured credit products market. Tackles key issues in valuing structured financial products: fraud, phony ratings, misleading structures, poor underwriting standards, and more. Coverage begins with an overview of market basics, technology, subprime and Alt-A mortgages, mortgage backed securities, special issues, special purpose entities, total return swaps, cash and synthetic arbitrage CDOs, STCDOs, CDO equity structures, selling CDO equity, balance sheet CDOs, risk and return, the role of the rating agencies, the ineffectiveness of monoline “insurance,” and credit hedge funds.

Click here for errata

Praise for Structured Finance & Collateralized Debt Obligations 2nd Ed.

“Janet Tavakoli has been able to dissect with a brisk style the intricacies of many structured products. Not only does she explain in a clear and insightful manner how certain things work, but more important, why others DO NOT WORK!!! Highly recommended and very much needed.”
Arturo Cifuentes, Ph.D.
Professor/Business School en Universidad Adolfo Ibanez. Member, Investment Committee, Chilean Sovereign Fund

“Janet Tavakoli has warned people about the risks in structured finance for years. Now she has written a primer that the investor on Main Street can understand and the pro on Wall Street would be unwise to ignore.”
Roger Lowenstein
Author of When Genius Failed, and Buffett: The Making of an American Capitalist

“Janet Tavakoli warned the world this disaster was coming well in advance. Now she explains it again for those who did not listen before as well as why it is not over yet. You need to read this book to understand the biggest credit bubble in world history.”
Jim Rogers
Author of A Bull in China, Hot Commodities, Adventure Capitalist, and Investment Biker

CDO Evolution Creates New World of Risk” – GARP Risk Review

“Buyer Beware” (adaptation) – International Financing Review
“Book Debates Racing Deal” (adaptation) – Financial Times

Credit Derivatives & Synthetic Structures, 2nd Edition

John Wiley & Sons, June 2001

Credit Derivatives & Synthetic Structures is a contemporary finance classic. This groundbreaking global bestseller, was the only comprehensive resource of its kind and remains a testament to early identification of problems in the credit derivatives market, some of which are still unresolved. Michael Burry told Congress he read this book along with Tavakoli’s Collateralized Debt Obligations, before he put on “the big short” mentioned in Michael Lewis’ post-crisis book about the trade. In the revised and updated Second Edition, Tavakoli covers total return swaps, advanced balance sheet management, credit default swaps, exotic structures, first-to-default options, credit linked notes, synthetic structures, sovereign risk, convertibility options, mortgage backed securities, collateralized loan obligations, BISTROs, principal protected notes, leveraged exposure to credit spreads, conditional probability of default, callable step-ups, secured loan trusts, securitizing first loss risk, basis risk and delivery options, credit arbitrage funds, credit event definitions, notice of credit events, first to default options, firm-wide credit risk management and more. Tavakoli describes the strengths and weaknesses of models and the real world performance of various credit derivative products.

Praise for Credit Derivatives & Synthetic Structures 2nd Edition

Wiley Finance, June 2001

“If you want to know more about credit derivatives – and these days an increasing number of people do – then you should read this book.”
Merton H. Miller
winner, Nobel Prize in Economics, 1990

Unveiled Threat

Buy Now

 

 

 

 

Unveiled Threat

Lyons McNamara, 2014

Tavakoli’s brief memoir bears witness to the incompatibility of fundamentalist Islam and Western civilization.

What were you able to learn about fundamentalist Islam by following the money?

If you read the 9/11 report, it states the Saudis, among others, funded terrorism. There is a theory that Saudi Arabia, among others, funded the fellows who formed ISIS to advance the Wahhabi agenda on the Arabian Peninsula, but their monsters went rogue and formed their own Wahhabi-based caliphate.

Read the entire interview about Unveiled Threat at Think Advisor.

The New Robber Barons

Lyons McNamara, 2012

With trillions on the table, nobody plays fair, and everyone plays for keeps

Anthology of Janet Tavakoli’s original chiefly web-based articles from the September 2008 financial crisis through February 2012. The web commentaries pick up where Dear Mr. Buffett (Wiley, 2009), her book on the events that led to the crash, leaves off. The original commentaries are unrevised so that readers experience the real-time thought process. Some background was repeated in commentaries so that they could read as stand-alone web articles as events unfolded.

Tavakoli serves up example after stunning international example of no-strings-attached socialization of losses and privatization of gains and exposes the criminogenic environment that enabled international oligarchs to solidify power.

Available as an eBook for purchase in local currency in the U.S., UK, Germany, France, Italy, and Spain. Also available in a U.S.  print edition, a UK print edition, and in various international venues through Amazon.

Dear Mr. Buffett: What an Investor Learns 1,269 Miles from Wall Street

(Wiley 2009) Other Languages: Orthodox Chinese, Japanese, simplified Chinese, Portuguese (Brazil), and Turkish.

Click here for errata

If legendary investor Warren Buffett invited you to lunch, what would you talk about? Dear Mr. Buffett is a witty, well-told account of how principle triumphs over greed and panic. If you don’t read this book, you won’t understand what caused recent financial history’s most turbulent times.

Praise for Dear Mr. Buffett

“Buffett, Tavakoli Flag Ponzi Scheme Bigger than Madoffs” –
Bloomberg News

“A clear and pacy run through the multitude of sins and sinners in the modern financial world. Full of anecdotes, details and character sketches that add depth…she knows her stuff, has strong opinions and turns a colourful quote.”
Paul J. Davies
Financial Times

“The book’s real strength is the sub-plot that emerges as Tavakoli tugs vigorously at the seemingly disparate threads of the current financial crisis, naming names, citing cases and leaving no schmuck — whether investment bank, credit rating agency, monoline insurer, mortgage brokers, regulators and their ilk — unspared. Based on more than 20 years in the derivatives arena, and having served time at Salomon Bros, Bear Stearns and Goldman Sachs, she knows that of what and who she speaks. Should anyone ever display the slightest interest in criminalizing the criminals who led us down this path, a prosecutor could do worse than ordering up copies for the grand jury.”
Greg Newton (1956-2009)
Founder and Editor of MarHedge

“Tavakoli has been railing against emperors wearing no clothes in the credit derivatives markets forever. If only people had listened.”
Andrew Tobias
Author of The Only Investment Guide You Will Ever Need, AndrewTobias.com

“Janet Tavakoli writes about the exotic, abstract financial instruments that helped implode the U.S. financial markets, and she writes in a clear, sprightly way. She knows a lot, and translates it well. Contrasting the shenanigans of recent years against the good analysis and common sense of Warren Buffett is appropriate, and helps to illustrate the levels of irrational behavior.”
Adam Smith (George J.W. Goodman)
Author of The Money Game and Supermoney

Rousing Tale of Advice Left Unheeded,” Business Standard – April 23, 2009
“Buffett, Tavakoli Flag Ponzi Scheme Bigger Than Madoff’s,” Bloomberg News – March 5, 2009
“Buffett Author: Warren Doesn’t Rely on Luck” – CNBC – February 10, 2010
No Mere Buffett, a 14-Course Menu,” Seeking Alpha – January 8, 2009
“The Housing Collapse: What would Buffett do?” Free Lance Star – January 25, 2009
“On Buffett and Derivatives,” Seeking Alpha – February 2, 2009
“Dear Mr. Buffett: A Book Review with a Little ‘Extra,'” – Seeking Alpha – February 2, 2009
“Featured Book Look: Dear Mr. Buffett,” TraderFeed – February 20, 2009
“The Financial Meltdown Foreseen,” Financial Times – February 23, 2009

For Janet Tavakoli’s financial thrillers, go to janettavakoli.com.

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