What Is a Bespoke Tranche Opportunity?
U.S News and World Report – August 16, 2021
Financial Crises: Past, Present, and What’s Next
Portfolio Management Research – April 21, 2020
More Than One Million Reasons to Lie about Structured Finance
The Journal of Structured Finance Spring 2019, 25 (1) 8-20
Correctly characterizing credit risk is the most important step in structured finance. In particular, detecting fraud in granular portfolio assets leads to market outperformance for portfolio managers who eliminate more fraud than their competitors. Fraud results in varying degrees of permanent value destruction for both fixed income and equity portfolios. Even if no fraud is discovered, the due diligence process eliminates weaker “peer” credits and eliminates overpaying for assets. Fraud discovered in discrete assets is often a leading indicator of gaming in other aspects of securitizations. Despite the contribution of massive securitization fraud to the September 2008 financial crisis, quantitative modeling is still favored at the expense of thorough portfolio due diligence. The financial industry should shift the bulk of time and money to ongoing credit analysis instead of spending most of its resources on quantitative analysis. This is the opposite of current market practice.
Best Warren Buffett Books of 2018
Benzinga – November 8, 2018
Hedge Funds Burned by Short Trade as American Malls Refuse to Die
Bloomberg – October 2, 2018
“Janet Tavakoli, president of risk consulting firm Tavakoli Structured Finance,” explained that monetizing “The Big Short” is more difficult than most investors think. (Bloomberg, Oct 2018)
The toxic alphabet soup that almost took down Wall Street is staging a comeback
CNBC.com – September 19, 2018
“After a decade of low interest rates, money managers are hunting for instruments that pay more ‘and will entertain almost anything,’ said Janet Tavakoli, president of Tavakoli Structured Finance.” (CNBC, Sept 2018)
‘Grandfather of CDOs’ Trying to Do for Higher Education What He Did for Mortgages
Wall Street Journal – May 18, 2018
Citi is Bringing Back One of the Most Infamous Bets of the Credit Crisis – Synthetic CDOs
Bloomberg – September 26, 2017
“’Just as derivatives [and synthetic CDOs] can lever up the upside, they can lever up the downside.’ said Janet Tavakoli, a 30-year veteran of the financial markets who runs a consulting firm and has written books on structured credit and CDOs.” (Bloomberg, Sept 2017)
Ten years since the global financial crisis, world still suffers ‘debt overhang’
The Sydney Morning Herald – June 17, 2017
“Janet Tavakoli…author of several books about the GFC, says regulations to prevent financial fraud have always existed. The problem is that regulators don’t enforce them.” (The Sydney Morning Herald, June, 2017)
Letter: Withdrawal from climate pact offers opportunity for new deal
The Financial Times – June 5, 2017
The Big Read: Debt pile-up in US car market sparks subprime fear
The Financial Times – May 29, 2017
What Happened to Banker Bashing?
Bloomberg News – March 23, 2017
Risk: Your Global Guide (a review)
Financial Analysts Journal (CFA Institutue) Times – 2016 Volume 11, Issue 1
How to Spot a Fraud
Think Advisor- May 3, 2016
Some Hedge Funds Want to Make Subprime Auto Loans Next Big Short
Bloomberg News – February 10, 2016
Citi Found Itself Briefly Exposed to $400 Million Hit Through Small London Hedge Fund’s Trades
Wall Street Journal – October 25, 2015
“This is a systems problem,” said Janet Tavakoli, president of Chicago consulting firm Tavakoli Structured Finance Inc., adding that banks too often don’t adequately supervise their trading and financing activities with hedge-fund clients.
Co-Chief Executives of Deutsche Bank Resign
New York Times – June 7, 2015
Sequel to Wall Street Horror Show is Coming
Think Advisor – May 12, 2015
S&P Doubles CMBS Ratings Business After SEC Bans It From Market
Bloomberg News – April 2, 2015
S&P’s $1.38 settlement on risky mortgage bonds leaves raters’ conflict of interest intact
Associated Press – February 3, 2015
Standard & Poor’s settles with US government, 2 states over ratings on mortgage bonds
Associated Press – January 21, 2015
Art Loans as CDO Collateral?
Private Art Investor – January 16, 2015
Finding Losers From Oil Leads JPMorgan to Texas: Credit Markets
Bloomberg News – January 13, 2015
How the NY Fed Bent the Rules for Citibank
Newsweek – December 22, 2014
Hank Greenberg, AIG, CIC and the Backdoor Bailout
Institutional Investor – November 21, 2014
Tavakoli Turns Her Fire from Crony Capitalists to Muslim Fundamentalists
Think Advisor – October 29, 2014
SEC Adopts New Rules on Asset-Backed Securities and Credit Ratings
New York Times – August 27, 2014
S&P Revises Loan Rating Methodology to Boost CLO Business
Bloomberg News – August 27, 2014
Investors dine on fresh menu of credit derivatives
Financial Times – August 20, 2014 (subscription)
Dimon Succession Plan Is In Spotlight
Wall Street Journal – July 3, 2014
Chicago Council to Launch Summit to Support Cities’ Global Growth
Chicago Tribune – June 4, 2014
Electronic currency isn’t free from crime
The Financial Times – May 30, 2014
Apply Peterffy solution to the HFT spoofers
Financial Times – April 12, 2014
NASAA Comes Out Swinging in Fight over Reg A+ Rules
Growth Capitalist – April 4, 2014
All the Devils Are Here: Restating the Obvious
The Maui News – March 29, 2014
Futures Industry: A story of crisis and opportunity
Futures Magazine – February 2014 Issue
William Broeksmit, Ex-Deutsche Bank Risk Manager, Dies at 58
Bloomberg News – January 31, 2014
Regulator Clarifies Accounting Rules in Wake of ‘Whale’ Case
Wall Street Journal – October 16, 2013
What We Learned From the Financial Crisis
Wall Street Journal – September 13, 2013
Blythe Masters, JPMorgan’s Credit Derivatives Guru, Is Not Sorry
Bloomberg Businessweek (Paul M. Barrett) – September 12, 2013
SEC Needs to Wake Up
Think Advisor – August 1, 2013
Date More Worthy of Lucy’s Talents
Financial Times – July 12, 2013
Janet Tavakoli blends Catholic Church and shady financial dealings in new thriller
Opalesque – March 14, 2013
Structured Notes Mirror JPMorgan’s London Whale Credit Trades
Bloomberg News – April 9, 2013
S&P as Sole Target Has Wall Street Asking About Moody’s [and Fitch]
Bloomberg News – February 7, 2013
McGraw-Hill Defense Seen as Diversion Against U.S. Fraud Claims
Bloomberg News – February 6, 2013
Leeway on Repo Rules is Cut Back
Wall Street Journal – January 15, 2013
Behind the Fall of a Crisis Era So-Called Whiz
Wall Street Journal – October 11, 2012
Citigroup Agrees to $590 Million Subprime Settlement
Washington Post – August 29, 2012
Failed Regulators and Other Culprits of the Financial Crisis
Advisor One – August 29, 2012
JPMorgan Profit Drops on ‘Whale’ of a Loss
Reuters – July 13, 2012
Dimon Risk Reputation on Line
Bloomberg Businessweek – July 10, 2012
JPMorgan’s Losses Keep Adding Up
CNN Money – June 12, 2012
Cover Story: Finding the Culprits of the Crisis
Research Magazine – May 2012 Issue
JPMorgan’s Huge Loss Exposes the Risky Side of Banks
L.A. Times – May 31, 2012
Investors Bet on Facebook’s Fall
Wall Street Journal – May 29, 2012
Facebook Shares Plumb New Depths, Valuation Questioned
Reuters – May 29, 2012
Analysis: The Core Problems with JPMorgan’s Failed Trades
Reuters – May 14, 2012
The JOBS Act Is So Criminogenic That It Guarantees Full-Time Jobs for Criminologists
by William K. Black – March 20, 2012 (JT Note: I am among the co-signers)
Fear Gauge at 5-Year Low “An Optical Illusion”
CNN – March 15, 2012
Goldman Sachs Ripped by Critics for History of Issues
AdvisorOne – March 15, 2012
SEC Sues Hub’s Richard Syron
Boston Herald – December 17, 2011
Corzine Facing Questions About Regulator Contacts
Associated Press – December 15, 2011
Corzine Blames Predecessors for MF Global’s Fall
Associated Press – December 8, 2011
Goldman Apologist Claims Paulson Hedge-Fund Meeting Was Business As Usual
Bloomberg News – December 4, 2011
How Paulson Gave Hedge Funds Advance Word of Fannie Mae Rescue
Bloomberg Magazine / BusinessWeek – November 29, 2011
Nomura Curtails European Debt Dealings
Wall Street Journal – November 29, 2011
Greek Bond Losses Put Role of CDS in Doubt
Financial Times – November 17, 2011
Sad Proof of Europe’s Fallout [MF Global, Leverage, and Opaque Credit Derivatives]
New York Times – November 5, 2011
The Two Faces of Jon Corzine
Reuters – November 4, 2011
MF Global’s Jon Corzine Runs Out of Luck
Bloomberg Businessweek – November 2, 2011
Selling More CDS on Europe Debt Raises Risk for U.S. Banks
Bloomberg News / Business Week – November 2, 2011
Black Swan Money Manager Returning 23% Anticipating Bear Market
Bloomberg News – October 6, 2011
U.S. SEC Concedes Challenges in Credit-Rating Probes
Reuters – September 29, 2011
SEC Mulls Charges Against S&P in CDO Case
Reuters – September 26, 2011
Statutes of Limitation Fuel Banks’ Wave of Mortgage-Bond Claims
American Banker – September 15, 2011
S&P; Move Isn’t a Shock but Adds to Gloom Aug 7 2011
Wall Street Journal – August 7, 2011
In Symbolic Move, Tavakoli Strips Rating Firms of Key Status
Dow Jones – July 25, 2011
S&P As the Decider?
Reuters – July 24, 2011
Junk Bond Market’s Big Buyer Goldman Sachs Topples Deutsche Bank in Europe Junk Bond Underwriting
Bloomberg News – July 14, 2011
Exclusive: Deutsche’s Firing of Top Trader Sparks Probe
Reuters – June 24, 2011
How Safe Are Your Savings? Complex Derivatives Imperil Retirement Funds
Demos – May 17, 2011
Buffett Scrambles to Limit Damage
Wall Street Journal (Front Page) – May 2, 2011
Sokol Misled Buffett, Violated Trading Rules
Bloomberg/Businessweek – April 27, 2011
Special Report: Is Buffett’s Teflon Finally Wearing Off?
Reuters – April 25, 2011
The Wall Street Mind: Anxious
New York Magazine – April 12, 2011
Dissension in the Ranks
Mortgage Banking Magazine – March 2011
Special Report: OMG! Dan Loeb Said What?
Reuters – March 11, 2011
Hedge Funds Search for Ways to Short Munis
Financial Times – February 8, 2011
Special Report: Jamie Dimon Wants R-E-S-P-E-C-T
Reuters – February 4, 2011
JP Morgan Faces More Risks on Madoff Trustee Allegations
Wall Street Journal – February 3, 2011
A Bank Crisis Whodunit, With Laughs and Tears
New York Times – January 30, 2011
The Nerve to Say No
New York Times – Dec 12, 2010
Repairing the Damage of Fraud as a Business Model
Presentation to the FHFA Supervision Summit in Washington D.C. – Dec. 8, 2010
Fink Builds BlackRock Powerhouse Without Goldman Backlash
Bloomberg News – Dec 9, 2010
An Investment for the Experienced
New York Times – October 20, 2010
“This is the Biggest Fraud in the History of the Capital Markets”
Washington Post – October 8, 2010
In Foreclosure Controversy, Problems Run Deeper Than Flawed Paperwork
Washington Post – October 7, 2010
Blaming Shortsellers, A Pointless Post-Lehman Game
Daily Finance – September 15, 2010
Despite Reform, Banks Have Room for Risky Deals
New York Times (Front Page) – August 26, 2010
Analysis: Crisis Panel Targets Goldman as AIG Skates By
Reuters – July 2, 2010
Fees Exceed Maximum Yields on “Black Box” Convertibles
Bloomberg News / Business Week – June 24, 2010
ICP Once in AIG’s “Very Best” is New Front in SEC’s CDO Probe
Business Week – June 22, 2010
SEC Charges ICP Asset Management in CDO Fraud Case
Reuters – June 21, 2010
CDOs Aren’t a Four Letter Word
Reuters – May 27, 2010
Barofsky Says Criminal Charges Possible in Alleged AIG Coverup
Bloomberg News – April 28, 2010
Exclusive: Abacus might have had other benefits for Goldman
Reuters – April 23, 2010
Goldman Sachs Clients First Pledge Undercut by SEC
Bloomberg News – April 17, 2010
“Goldman Sachs: Don’t Blame Us”
Business Week (Cover Story) – April 14 2010
Fed Reveals Bear Stearns Assets it Swallowed in Firm’s Rescue
Bloomberg News – April 1, 2010
Lehman’s Hidden Leverage “Shenanigans” May Haunt Fuld
Business Week – March 13, 2010
Fed Helped Bank [Lehman] Raise Cash Quickly
New York Times – March 12, 2010
Wall Street’s Role in Greek Crisis Should be No Surprise
Washington Post – March 10, 2010
Larry Fink’s $12 Trillion Shadow
Vanity Fair – April 2010
Role of Banks Eyed in Greek Debt Crisis
Globe and Mail – February 26, 2010
Secret AIG Document Shows Goldman Sachs Minted Most Toxic CDOs
Bloomberg News – February 26, 2010
Buffett Author: Warren Doesn’t Rely on Luck
CNBC – February 10, 2010
New York Fed “Very Sensitive on AIG, Company E-Mail Says
Bloomberg News – January 19, 2010
Redacted AIG Filing Might Have Spotted Worst Deals
Reuters – January 12, 2010
Turmoil Shatters Faith in “Creative” Products
Financial Times – December 29, 2009
Goldman Fueled AIG Gambles
Wall Street Journal – December 12, 2009
The Bank Job
Vanity Fair – January 2010 Issue (released December 1, 2009)
Beware of Geeks Bearing Grifts
Risk Professional – by Janet Tavakoli – December 2009
Revisiting a Fed Waltz With A.I.G.
New York Times – November 22, 2009
Bear Stearns Fund Manager – Before His Day in Court
CNBC – November 11, 2009
Can Citigroup Carry Its Own Weight?
New York Times – November 1, 2009
New York Fed’s Secret Choice to Pay for Swaps Hits Taxpayer
Bloomberg News – October 27, 2009
It Is Time to Strip the Rating Agencies of Their Oligopoly
Business Insider – September 29, 2009
Wall Street’s Fraud and Solutions for Systemic Peril
Presentation to the International Monetary Fund – September 29, 2009
U.S. Exit From Bank Bond Program to Go Smoothly
Reuters (Forbes)- September 16, 2009
Consumers’ Debt-Tactic Changes May Hurt Banks, Tavakoli Says
Bloomberg News – August 26, 2009
Buffett’s Payouts Climb on Credit Derivatives After Defaults
Bloomberg News – August 11, 2009
Berkshire May Post “Blockbuster” Results by CEO’s Gauge
Bloomberg News – August 6, 2009
What Wall Street Owes You (Commentary)
CNN (exclusive to CNN) – July 15, 2009
U.S. Probe of CDS Market
Financial Times – July 15, 2009
Unwinding at AIG Prompts Pasciucco to Ponder Systemic Failure
Bloomberg News – July 1, 2009
$2.1 million lunch with Berkshire Hathaway chief: “Warren will give him his money’s worth”
Examiner – June 26, 2009
Berkshire Bought Municipal Bonds Amid Higher Yields
Bloomberg News – June 9, 2009
Warren Buffett Buys Big “Bargains” in Muni Bonds
CNBC – June 9, 2009
Bank Profits From Accounting Rules Masking Looming Loan Losses
Bloomberg News – June 5, 2009
BlackRock Wears Multiple Hats
Wall Street Journal – May 18, 2009
Reaction Mixed to Derivative Reforms
Wall Street Journal – May 15, 2009
Stress Tests Are Over. The Stress Isn’t.
New York Times – May 10, 2009
BlackRock Is Go-To Firm to Divine Wall Street Assets
Bloomberg News – May 8, 2009
CNBC Debates Whether Warren Buffett Has Lost His Way
CNBC- May 1, 2009
How to Rescue Capitalism
Forbes – April 27, 2009
Geithner, as Member and Overseer, Forged Ties to Finance Club
New York Times – April 27, 2009
Barclays’ Massive Loan Pool Eludes Notice
The Street.com – April 20, 2009
Credit-Swaps Dealers Take Beating as Auctions Produce Losses
Bloomberg News – April 17, 2009
Why Didn’t Regulators See the Current Crisis Coming?
CBS News – April 17, 2009
Mall Vacancies Spell Fresh Trouble for Lenders
Globe and Mail – April 7, 2009
Buying into Financial Fix? “Cassandra” Says Don’t
Globe and Mail – March 14, 2009
Buffett, Tavakoli Flag Ponzi Scheme Bigger Than Madoff’s
Bloomberg News – March 5, 2009
In Letter, Warren Buffett Concedes a Tough Year
New York Times – March 1, 2009
In Geithner We Trust Eludes Treasury as Market Fails to Recover
Bloomberg News – February 25, 2009
Recipe for Disaster: The Formula That Killed Wall Street
WIRED – February 23, 2009
The Financial Meltdown Foreseen
Financial Times – February 21, 2009
Stimulus Plan, Bad Assets May Inflame Risk – JT Note: Misleading Article From Reuters
Reuters (a misleading article) – February 19, 2009
The China Syndrome: It’s Our Fault They Don’t Trust Us
Financial Times – February 5, 2009
Crackdown on Wall Street: The Perp Walks Are Coming
Fox Business – February 2, 2009
Divorce – Bank of America Style
Fortune – January 30, 2009
Questions Hang Over Merrill Deal
Financial Times – January 28, 2009
Four Questions for Tim Geithner
Fortune – January 20, 2009
After Sure-Bet Investment Fails, a Bank Contends it Was Duped
New York Times – January 20, 2009
Fortune’s Forgiving Instincts
Columbia Journalism Review – January 16, 2009
Bernanke Urges “Strong Measures” to Stabilize Banks
Bloomberg News – January 13, 2009
Bailing Out the Bad Guys
FT Alphaville – January 10, 2009
No Mere Buffett, A 14-Course Menu
Seeking Alpha – January 9, 2009
Ponzi Nation
Business Week – December 14, 2008 (from the archives)
A Brief History of Ponzi Schemes
Time – December 15, 2008
Ponzi Nation
Business Week – December 14, 2008
AIG Is Said to Pay $18.7 Billion to Goldman, SocGen for Swaps
Bloomberg News – December 10, 2008
“‘The AIG bailout wasn’t meant to help the American taxpayer,’ said Janet Tavakoli, president of Chicago-based Tavakoli Structured Finance. ‘What this has ended up doing is helping the investment banks who had AIG counterparty risk.'” (Bloomberg News, Dec 2008)
The Next Big Dump
Forbes – December 8, 2008
Synthetic CDOs: not saving anything
FT Alphaville – December 2, 2008
“[Diagram is] loosely based on the kind of thing Janet Tavakoli – a structured finance expert par excellence – has been saying for years…” FT Alphaville, Dec 2008
How the Thundering Herd Faltered and Fell
New York Times – November 9, 2008
A Parable of Disaster
The Economist – November 3, 2008
The Reckoning – From Midwest to M.T.A., Pain From Global Gamble
New York Times – November 2, 2008
A Question for A.I.G.: Where Did the Cash Go?
New York Times – October 30, 2008
They’re Shocked, Shocked About the Mess
New York Times – October 26, 2008
AIG Is said to Pay $18.7 Billion to Goldman, SocGen for Swaps
Bloomberg News – October 22, 2008
“The AIG baoilut wasn’t meant to help the American taxpayer, said Janet Tavakoli, president of Chicago-based Tavakoli Structured Finance. “What this has ended up doing is helping the investment banks who had AIG counterparty risk.”
Europe Weighs U.S. Bailout Rejection
Dow Jones Financial News – September 30, 2008
Don’t Bet On A Bailout Payday
Fortune (and CNNMoney.com) – September 26, 2008
At Freddie Mac, Chief Discarded Warning Signs
New York Times (Page One) – August 5, 2008
“‘The top people should be booted out, and replaced by executives who have the confidence of the markets,’ said Janet Tavakoli, a finance industry consultant and observer of both firms.”
Merrill Lynch 2007 CDOs under water: consultant
Reuters – July 30, 2008
Merrill Aims to Raise Billions More
Wall Street Journal (Front Page) – July 29, 2008
“Of around 30 CDOs totaling $32 billion that Merrill underwrote in 2007, 27 have seen their top triple-A ratings downgraded to ‘junk,’ according to data compiled by Janet Tavakoli, a structured-finance consultant in Chicago.”
More Data on Mortgage Bonds Sought
Wall Street Journal – Page C1 – July 16, 2008
“Janet Tavakoli, president of Tavakoli Structured Finance, says disclosure is only part of the solution. ‘Conflicts of interests were disclosed in many of these prospectuses,’ she said. ‘This wasn’t a disclosure issue, it was a fraud issue.'” (Wall Street Journal, July 2008)
Paulson’s Proposal to Buy Fannie, Freddie Equity”Insane”
LIPPER HedgeWorld – July 15, 2008
Fed Casts Scapegoat Net, Snag Cioffi and Tannin
Bloomberg News – June 25, 2008
How Fair is Fair Value Accounting?
Forbes – June 25, 2008
Structured Success
University of Chicago Magazine – May/June 2008
FGIC Loses $33.4 Million, After Offsetting Writedowns
Bloomberg – May 23, 2008
Moody’s Commercial Paper Rating May Be Cut, S&P Says
Bloomberg – May 22, 2008
Moody’s Stock Suffers Record Plunge on Ratings Error
Reuters – May 21, 2008
CPDOs Expose Ratings Flaw At Moody’s
Financial Times – May 20, 2008
“Once again, the rating agencies have proved that when it comes to some structured credit products, a rating is meaningless,” Janet Tavakoli, an independent consultant, told the FT in November 2006. “All AAAs are not created equal, and this is a prime example.” (Financial Times, May 2008)
Banks Hide $35 Billion Writedowns from Income Filings Show
Bloomberg – May 18, 2008
Recession Question Misses the Point
Fortune – April 30, 2008
Pandit’s “Closer to End” Means No Escaping LBO Loans
Bloomberg News – April 29, 2008
“Super-senior” CDO Investors Begin to Flex Their Muscles
Financial Times – April 15, 2008
Dissecting the ACA Downgrade
Business Week – April 14, 2008
Fed Says Bear Collateral Includes Loans, “Hedges”
Bloomberg News – April 3, 2008
Taxpayers May be Liable for Bear Mortgage Rescue
Bloomberg News – March 24, 2008
Security Capital [Assurance] Defends Termination of Credit Default Swap Contracts
Bloomberg News – March 20, 2008
Moody’s, S&P Defer Cuts on AAA Subprime, Hiding Losses
Bloomberg News – March 11, 2008
Credit Swaps Thwart Fed’s Ease as Debt Costs Surge
Bloomberg News – March 6, 2008
Record CDO Fees Set Up Merrill, Citigroup for Worst Writedowns
Bloomberg News – March 3, 2008
Citigroup Underwrote $6.9 Billion of Ambac’s Most Troubled CDOs
Bloomberg News – February 28, 2008
RLPC – Fund Selling Adds to Leverage Loan Woes
Reuters/Forbes.com – February 7, 2008
Emperors Should Not Have Rebuffed the Oracle
Forbes.com – February 6, 2008
Credit Crisis: Where Was the SEC?
Forbes.com – February 6, 2008
Cynical Use of Derivatives Has Left Market in a Pickle
Financial Times – Letter from Janet Tavakoli – January 31, 2008
Buffett Set to Cash in On Bond Insurers’ Woes
Reuters/Forbes.com – January 30, 2008
Credit Rating Firms Seen Holding Back on Bond Insurers
Reuters – January 30, 2008
The Cassandra of Credit Derivatives
BusinessWeek – January 28, 2008
Buddy, Could You Spare $15 Billion?
The Economist – January 24, 2008
Under Review: Ripple Effects of Much Harsher Debt Ratings
Wall Street Journal (Page C1) – January 18, 2008
For Financial Stocks, Is it Another False Bottom?
Wall Street Journal – January 16, 2008
A Fund Behind Astronomical Losses January 14, 2008 (Magnetar)
Wall Street Journal – January 14, 2008
“Many hedge funds realized early on ‘that the loans and securities that went into CDOs were extremely toxic, and they designed structures to exploit that,’ says Janet Tavakoli, a structured-finance consultant.” (Wall Street Journal, Jan 2008)
Wall Street Wizardry Amplified Credit Crisis December 27, 2007
Wall Street Journal – Page One – December 27, 2007
“It is a tangled hairball of risk,’Janet Tavakoli, a Chicago consultant who specializes in CDOs, says of Norma.” (Wall Street Journal, Dec 2007)
CDO Battles: Royal Pain Over Who Gets What
Wall Street Journal – Page C1 – December 17, 2007
“‘If you liquidate a lot of assets at once, you don’t always get the best price,’ says Janet Tavakoli, president of consulting firm Tavakoli Structured Finance.” (Wall Street Journal, Dec 2007)
Deals with Hedge Funds May Be Helping Merrill Delay Mortgage Losses
Wall Street Journal (Page One) – November 2, 2007
Summary: Janet Tavakoli noted Merrill Lynch’s off-balance-sheet deals with hedge funds may explain reduced mortgage exposure, but risks remain (Wall Street Journal, Nov 2007).
Banks’ Plan for Big Fund Faces Big Hurdles
Reuters – October 17, 2007
U.S. Investors Face An Age of Murky Pricing
Wall Street Journal – PAGE ONE – October 12, 2007
“‘Even selling a portion of a position can be gamed by getting four or five investors [or even just one] involved to buy each others’ positions’ at beneficial prices, says Janet Tavakoli, a former trader and now a consultant.” (Wall Street Journal, Oct 2007)
Bear Stearns’ Hocus Pocus [Cover Story]
Business Week – Issue Date: October 22, 2007
Market Back to Freewheeling Ways
Chicago Tribune – October 8, 2007
Is Congress Missing the Boat on Credit Raters?
Reuters – September 27, 2007
Anatomy of A Ratings Downgrade
Business Week – Issue Date: October 1, 2007
Wall Street Earnings Short on Details [Counterparty Risk]
Fortune Magazine – September 25, 2007
Misfortune’s Formula: Structured Credit Ratings
HedgeWorld (Reuters) – by Janet Tavakoli – September 19, 2007
The SEC Wants More Answers
Business Week – Issue Date: September 17, 2007
A Matter of Opinion
Investment Dealers’ Digest – September 10, 2007 (Feature)
Next in Line for Subprime Hit: Bonds?
Associated Press – September 9, 2007
In Subprime, AIG Sees Small Risk; Others See More [AIG’s phony accounting] August 13, 2007
Wall Street Journal – Page C1 – August 13, 2007
“‘There’s no way [AIG’s positions] 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.'” (Wall Street Journal, August 2007)
Market Intelligence: Mortgage Woes Continue to Spread
CNBC – August 3, 2007
Janet Tavakoli on CNBC’s Squawk Box: Compared with Fed estimates of $100 billion in subprime related losses, Tavakoli is estimating subprime losses of up to $340 billion on $1.5 trillion in loans.
Hedge Fund Mark to Market Woes
Greenwich Post- August 3, 2007
Death Bonds: Profiting from Mortality)
Business Week – Cover Story – Issue Date: July 30, 2007
Subprime Lenders and an FASB Rule
HedgeWorld- July 27, 2007
Subprime: Rating Agencies Were “Willingly Duped”
InsideEDGE – July 26, 2007
Subprime and the Dollar: Is There Really a Link?
HedgeWorld – July 25, 2007
Wall Street Can’t Cage Its Mortgage Monster
LA Times – July 22, 2007
Can Wall Street Be Trusted to Value Risky CDOs?
Reuters – July 14, 2007
Ratings Aside, Everyone Knows CDOs are Risky
Wall Street Journal – Page C1 – July 13, 2007
More Subprime Woes To Come
Business Week – July 12, 2007
Subprime Contagion: Credit Bubble or Credit Babble?
HedgeWorld – June 28, 2007
Bear Stearns Bailout: 2007 Warning Predicts 2008 Crisis
HedgeWorld Commentary (originally titled: “Bear’s Bailout a Bad Idea”)- by Janet Tavakoli – June 28, 2007. Updated 2025.
Two Big Funds At Bear Stearns Face Shutdown
Wall Street Journal – June 20, 2007
Mortgages Give Wall St. New Worries
New York Times – June 19, 2007
This Investment Could Turn Ugly
Business Week – Issue Date: June 18, 2007
Bear Stearns’ Subprime Bath
Business Week – June 12, 2007
Due Diligence Key in Avoiding CDO Pitfalls
HedgeWorld.com – June 4, 2007
Rating Agencies: Measuring the Measurers
The Economist – June 2-8, 2007
“Rating Agencies Issue Opinions” – Letter in Response to
” CDO Boom Masks Subprime Losses, Abetted by S&P, Moody’s, Fitch”
Bloomberg Magazine – (July 2007 Magazine)
Rating Agencies: Measuring the Measurers
The Economist (print edition) – May 31, 2007
Structured Debt Investments Aimed at US Retail Investors
Financial Times – May 30, 2007
SEC Finalizes Anti-Notching Rule
LIPPER HedgeWorld – May 29, 2007
How S&P Put the Triple A into CPDO
Financial Times – May 14, 2007
CDOs: Caveat Emptor Warn Structured Finance Experts
LIPPER HedgeWorld – May 14, 2007
Bear Stearns’ Subprime IPO
Business Week – May 11, 2007
Bear Stearns Funds to Transfer Subprime-Mortgage Risk with IPO
Bloomberg – May 11, 2007
Greater Global Risk Now Than At Time of LTCM
Financial Times – May 7, 2007 – [Letter to Editor] by Janet Tavakoli
As Funds Leverage Up, Fears of Reckoning Rise
Wall Street Journal – PAGE ONE – April 30, 2007
Credit Suisse Sued Over Losses on Subprime-Loan Bonds
Bloomberg News – April 27, 2007
Bright Future? – Buy Side Firms Optimistic About New Euros Futures Contracts
Structured Credit Investor – April 17, 2007
Subprime Mortgages: The Predators’ Fall
Risk Professional (formerly GARP Risk Review) Issue 35 March/April 2007 – by Janet Tavakoli
Do Not Accept Bolton’s Interpretation on Links with Iran
Financial Times – April 11, 2007 – [Letter to Editor] by Janet Tavakoli
Overlapping Subprime Exposure Masks the Risk of CDOs, Moody’s Says
Bloomberg – April 4, 2007
Credit Raters Rule
LIPPER HedgeWorld (Reuters) – March 26, 2007
The Dangers of Investing in Subprime Debt
Fortune Magazine [Risk, Washington Monthly]- by Bethany McLean March 19, 2007
Subprime Lending Excesses Have Damaged US’s Standing as Global Leader in Finance
Financial Times [Letter to the Editor] – March 19, 2007 – by Janet Tavakoli
Getting a Handle on CDOs is a Complex Challenge
Los Angeles Times – March 18, 2007
Mortgage Woes Flimsy Excuse for Stock Reversals
Chicago Tribune – March 6, 2007
Buffett Blasts Hedge Fund Fees
LIPPER HedgeWorld (Reuters) – March 5, 2007
Nixing the Notching: SEC Proposed Rules for Credit Rating Agencies
LIPPER HedgeWorld (Reuters) – February 23, 2007
TSF Comments on SEC Proposed Rules on Rating Agencies
TSF – February 13, 2007 – by Janet Tavakoli
Crisis in Credit Derivatives is Averted – Updated February 7, 2007
LIPPER HedgeWorld.com [Reuters] May 2006 Updated Feb. 7, 2007 – by Janet Tavakoli
Saudi Strides for Structured Finance
LIPPER HedgeWorld (Reuters) – January 26, 2007
Leaders Ask, Is New York Moving to London?
LIPPER HedgeWorld (Reuters) – January 23, 2007
Primus, Athelon Blaze CDPC Trail for Established Structured Finance Players
Asset Securitization Report – January 15, 2007
Oil Pressure: Fallout from the Iraq Study Group Report
LIPPER HedgeWorld – December 14, 2006 by Janet Tavakoli
Debt Investors’ Double Burden
Wall Street Journal – December 12, 2006
Principal Protected Notes Cap Upside, Carry Big Charges
Wall Street Journal – December 9, 2006
Quirkiest Vehicle on the Street
Business Week – November 20, 2006
Questions Lie Behind CPDO Hype
Financial Times – November 14, 2006
Best Practices Among CDO Managers (Clients Only)
Asset Securitization Report – by Janet Tavakoli – November 7, 2006
Lessons for CDS Investors Tripped Up by Language Landmines
Financial Times – November 3, 2006
“Janet Tavakoli, an independent consultant, says sophisticated hedge funds should be aware of these risks. ‘BlueMountain was free to write in their own language [in CDS trades] in anticipation of the possibility of a succession event such as the one presented by UPC,’ she says. ‘The bigger point is that models are not capturing this risk. It is the language landmines that blow you up.’” (Financial Times, Nov 2006)
LBO Crystal Ball
TheStreet.com – October 27, 2006
Investor Spotlight Falls on the Asset Manager
Financial Times – October 19, 2006
2 Exchanges in Chicago Will Merge
New York Times – October 18, 2006
The Golden Fleece Award for Optional Integrity
LIPPER HedgeWorld [Reuters] – October 2, 2006 [Commentary] by Janet Tavakoli
Dead Man’s Curve [Amaranth Advisors]
LIPPER HedgeWorld [Reuters] – September 22, 2006 [Commentary] by Janet Tavakoli
Fine Print Bites Deutsche Bank in CDS Suit
TheStreet.com – July 7, 2006
Wall Street Pushes Complex Structured Products…To Individuals
Wall Street Journal – June 21, 2006
Oil and Power: Iran Approach Must Avoid Past Mistakes
LIPPER HedgeWorld [Reuters] – by Janet Tavakoli – June 14, 2006
The Rising Establishment: Women in Credit
Credit Magazine – June 1, 2006
Mon Ami ISDA: Crisis in Credit Derivatives
LIPPER HedgeWorld [Reuters] – May 22, 2006
CDO Survey Under Way (Results Available to Clients and Participants Only)
LIPPER HedgeWorld [Reuters] – May 19, 2006
CME Comments on Debt Securities Rules
LIPPER HedgeWorld.com [Reuters] – April 27, 2006
CDO Industry Braces for Rapid Growth
Asset Securitization Report – April 24, 2006
Doubts Plague Risk Management
Asset Securitization Report – April 10, 2006
Cleaning Up Derivatives One Trade at a Time
LIPPER HedgeWorld.com [Reuters] – March 15, 2006
Lehman Gets Piece of All the Action (Preferred Credit Default Swaps)
TheStreet.com – March 13, 2006
Funds of Funds and Principal Protected Notes
LIPPER Hedge World [Reuters] January 13, 2006
Deutsche Could Be Tip of Iceberg
Financial Times – January 11, 2006
The Elusive Income of Synthetic CDOs
Journal of Structured Finance Winter 2006 Volume 11, Number 4 – by Janet Tavakoli
2005 After Maths
Financial Engineering News – December 28, 2005
Getting Rid of Unwanted Leftovers: CDO Equity
Financial Times – December 16, 2005
Calpine Default Jostles the CDO Market
LIPPER HedgeWorld [Reuters] – December 8, 2005
New Players, Old Conflicts
Investment Dealers’ Digest – December 5, 2005 (Cover Story)
The Fourth Dimension (Hoaxy CDO4)
The Wall Street Journal – November 19, 2005
Fast-growing CDO Market Suffers First Teething Problems
Financial Times – November 1, 2005
Delphi Defied: How the Credit Derivatives Business is Finding Ways to Retain its Poise
Financial Times – November 1, 2005
Banks Face Danger in Delphi
Financial Times – October 25, 2005
Commentary: My Favorite Hedge Fund: Part II
LIPPER HedgeWorld [Reuters] – October 24, 2005 – by Janet Tavakoli
CDOs: Caveat Emptor
GARP Risk Review – September/October 2005 Issue 26 – by Janet Tavakoli
S&P Warns of Derivatives Risk
Financial Times – September 27, 2005
The Billion Dollar Question
” ISR” International Securitisation Report – September 27, 2005
Merrill and Citigroup Top CDO Field
Financial Times – August 31, 2005
Consider the Full Notional Amount of CDOs When Assessing the Risks and Rewards
Financial Times Letter to the Editor – August 19, 2005 – by Janet Tavakoli
Wall Street – Exotic Debt May Pose Risk for Investment Banks
Reuters – August 18, 2005
CDO Deals This Year May Top $800 Billion
Financial Times – August 16, 2005
York Calling for Cash for a New CDO Fund
LIPPER HedgeWorld [Reuters] – August 15, 2005
High Hopes (IMF gets it wrong on asset securitization. Tavakoli comments.)
LIPPER HedgeWorld [Reuters] – August 9, 2005
Bear Stearns Shakes the CDO Honey Pot
TheStreet.com – August 5, 2005
CDOs Unwind with a Whimper
Financial Times – July 8, 2005
How Investors Can Lower Risk When Choosing a Hedge Fund
Financial Times – June 8, 2005 – by Janet Tavakoli
CDS Market Heightens Profile
LIPPER HedgeWorld – June 1, 2005
Derivatives Spread – and Heighten – Risk
Wall Street Journal – May 29, 2005
My Favorite Hedge Fund
LIPPER HedgeWorld – May 26, 2005 – by Janet Tavakoli
“Model Monkeys” Lose Track of Reality
Financial Times – May 20, 2005
The Synthetic CDO Shell Game
Investment Dealers’ Digest – May 16, 2005 (Cover Story)
Bonds Shine as Safe Havens Amid United, GM Woes
Chicago Tribune – May 12, 2005
Risky Strategies Take Toll on Traders
Wall Street Journal – May 11, 2005
Sobering News on CDOs in Moody’s Report (Hedge Funds Short BBB)
LIPPER HedgeWorld [Reuters] – May 11, 2005
Coping with Credit in a Climate of Default
Corporate Finance – originally published March 2002 – Adapted and Updated May 2005
CDOs Can Confuse Bank Managers
Financial Times – April 26, 2005 by Janet Tavakoli
Tavakoli’s Speech to the IMF on Global Systemic Risks
TSF – April 26, 2005
The Challenge of CDO Squared
Risk Magazine – March 2005 /Volume18/No3
BIS Stress Tests Structured Finance
ISR International Securitisation Report – March 1, 2005
UK’s FSA Concerned About Sloppy Back-Office Work
LIPPER HedgeWorld [Reuters] – February 24, 2005
More Accounting Issues at Fannie Mae
TheStreet.com – February 23, 2005
How Will Bond Market React to Citigroup Trades?
Financial Times – February 7, 2005 by Janet Tavakoli & FT follow-up on costs February 12, 2005
Structured Finance: Rating the Rating Agencies
GARP Risk Review Issue 22 January/February 2005 – by Janet Tavakoli
In With the In Crowd (Hedge Funds, Geithner, and Tavakoli)
ISR International Securitsation Report – February 1, 2005
STRUCTURED CREDIT: The Trials of Tranching
International Financing Review – IFR Magazine – October 25, 2004
CDO Arrangers’ Correlation Books
Securitization News – October 4, 2004 – Vol. II, No. 40 – by Janet Tavakoli
Fannie Mae: Key Questions Set to Shed Light on Lender
Financial Times – September 29, 2004
Fannie’s Raines Feels Heat as Stocks Slump
TheStreet.com – September 23, 2004
Profile: Banc of America Securities
US Credit – September 1, 2004
Fees / Money for Nothing?
ISR International Securitsation Report – September 1, 2004
Dying for 8% a Year
TheStreet.com – August 03, 2004
Invisible Hedge Funds (Banks’ Trading Desks)
GARP Risk Review July/August 2004 Issue 19 – by Janet Tavakoli
Post-Enron, Structured Finance Addiction Hasn’t Ebbed
TheStreet.com – July 29, 2004
Barcap / New CFO Structures Add Up
ISR International Securitsation Report – July 24, 2004
Martha Stewart: The Irony Maiden Hates to Lose
The Yearbook – July 14, 2004 – by Janet Tavakoli
Fresh EU Accounting Rules in Jeopardy
IR Magazine – June 18, 2004
Ultimate Leverage: Collateralized Fund Obligations
HedgeWorld’s Accredited Investor June 2004 – by Janet Tavakoli
What Goes on in Vegas Reaches Wall Street
Wall Street Journal – June 11, 2004
Speaking the Right Language: CDO Managers, Mezzanine, and Equity
ISR International Securitisation Report – May 2004 and reprinted in
Financial Engineering News – July/August 2004 Issue No. 38
FASB in Error on Options Valuation
Financial Times – April 5, 2004 – [Letters & Leaders from Janet Tavakoli]
Derivatives Accounting Reform in Europe Faces End-of-Year Deadline
HedgeWorld – February 27, 2004
Market-Timing Was Very Good to Michael Sassano
TheStreet.com – January 16, 2004
Investors Are the Gullible Ones if They Rely on Ratings as Indicators of Financial Robustness
Financial Times – Leaders & Letters- December 29, 2003 – from Janet Tavakoli
Parmalat Probers Are Likely to Focus on Role of Banks
Wall Street Journal – December 24, 2003
Janet Tavakoli, President of Tavakoli Structured Finance, was interviewed by a Wall Street Journal reporter regarding the Parmalat financial scandal and complex structured finance transactions.
Understanding the Risk in Structured Deals: A Large Part of “Super Senior” Isn’t “AAA”
Forbes.com and Reuters – December 22, 2003
CDO Evolution Creates New World of Risk
Risk Professional (formerly GRR) November/December 2003 Issue 15
Buyer Beware
International Financing Review (IFR Magazine) Derivatives 2003, Issue 1507 – Oct. 25, 2003
Excerpt from Janet Tavakoli’s CDO book.
Landesbanken: even lower rating may be in order
Financial Times – Leaders & Letters – December 1, 2003 – from Janet Tavakoli
Cover Story – Why These Folks Mean Business (Sarbanes-Oxley)
Finance World – October 2003
FIN 46 Interview
Securitization News and Loan Market Review – October 27, 2003 – Interview with Janet Tavakoli
Currency Convertibility Protection: The Forgotten Credit Derivative
Derivatives Week VOL. XII, NO. 41- October 13, 2003 – by Janet Tavakoli
Fast Growing Sector Hits Unlikely Roadblock (Cash High Yield CDOs)
Financial Times – October 1, 2003
Hedge Funds Face SEC Oversight
IR Magazine – September 30, 2003
Want Good Numbers? Watch Your Language
HedgeWorld – September 24, 2003
Tough Times Continue at Freddie Mac
Financial Times – August 25, 2003
Reporter Jenny Wiggins quoted Tavakoli questioning CEO Gregory Parseghian’s claims of ignorance: it was “difficult to imagine” he would have been unaware of the implications of questionable transactions in which he was involved.” (FT, 2003)
Freddie Report Highlights New CEO’s Questionable Role
International Financing Review (IFR) Issue 1494 – July 26, 2003
Reporter Jon Macaskill quoted Tavakoli warning that the agency’s accounting abuses could “further erode confidence among regulators and shareholders in the structured finance market, and derivatives accounting.” (International Financing Review Magazine, 2003)
Freddie Mac Report Soft Pedals Thorny Case
The Street.com’s Real Money – July 24, 2003
FIN 46 May Result in ‘Courting’ of Hedge Funds
HedgeWorld – July 22, 2003
Freddie Hides in the Hedges
Wall Street Journal – July 15, 2003
Editorial Board Member Susan Lee noted: “If Ms. Tavakoli is right [about overhedging with derivatives], then [Freddie Mac’s] gains would be a delicious counterpoint to what happened at Fannie Mae last year.” (WSJ, 2003)
Raising the Bar on Off-Balance Sheet Finance
TheStreet.com – July 4, 2003
Reporter Matthew Goldstein quoted Tavakoli on the distinction between financial tools and their misuse: “The SPE itself is simply a tool or a shell. The risk comes from what people are doing with the shell,” noting beneficial uses like securitizing mortgage-backed securities. (TheStreet.com, 2003)
Cracking Correlation – Credit Default Swaps
Credit Risk – July 2003 Volume 16 / No 7
Assessing Risk: Peeling Apart Data on Derivativesa
American Banker – July 1, 2003
Freddie Mac Takes On Full House of Derivatives
Wall Street Journal – June 30, 2003
Tavakoli warned WSJ’s investigative reporter that overhedging could mask speculative trading: “If you are buying more than you need, you are taking a view.” (Wall Street Journal, 2003)
Concentration of Firms Handling Freddie Mac Derivatives Causes Concern
Securities Week – June 30, 2003
Book Debates Racing Deal
Financial Times – June 28, 2003
A Mysterious World
Risk Professional (formerly GARP Risk Review) May/June 2003 Issue 12
Credit Derivatives
Risk Professional (formerly GARP Newsletter) May 2003
Ex-WestLB financial engineering head launches consultancy
Risk.net – April 28, 2003
“Super-seniors CDO equity are problematic due to opaque pricing and downgrades.”—Janet Tavakoli (Risk, 2003)
Former WestLB Banker Tavakoli Starts Credit Derivatives Firm
Bloomberg News – April 3, 2003