Yet
the company's valuation models seem to ignore the fact that
those derivatives would likely take a haircut if sold in
today's depressed market. "There's no way these aren't
showing a loss," says Janet Tavakoli, president of Tavakoli
Structured Finance Inc., a Chicago research firm. That's
simply a market reality, she adds, that should be showing
up in AIG's results.
Janet
Tavakoli appeared with Steve Forbes CEO of Forbes and
CNBC's Carl Quantanilla
to discuss AIG, hedge funds, and illiquidity issues.
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).
Janet Tavakoli's book on the global financial meltdown is Dear
Mr. Buffett: What An Investor Learns 1,269 Miles From Wall Street (Wiley
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. TSF
makes some information
available to the
general public.Please
click here for
other articles.
