The Wall Street Journal

Risky Strategies Take Toll on Traders($)

By HENNY SENDER, CARRICK MOLLENKAMP and MICHAEL MACKENZIE
Staff Reporters of THE WALL STREET JOURNAL May 11, 2005

The recent GM downgrades have had a big impact. Some "managers often game the portfolio," says Janet Tavakoli, president of Tavakoli Structured Finance Inc. in Chicago. Managers do that by including the debt of companies that offer the greatest yield for a given rating. Greater yield suggests the market believes such companies are at a bigger risk of downgrade.


Full article is available to subscribers of Wall Street Journal using the above link.

Clients of Tavakoli Structured Finance have access to the entire article and certain clients also have access to proprietary TSF research, which is not published in any other paid or public forum.

TSF makes some articles available to the general public. Please click here for other articles.