Rating: 
Summary: Emerging Markets: More Please!
Review: First Iran, Russia, Korea, Brazil and Venezuela, and now Turkey. I've structured one emerging market CDO and am working on another. It is difficult to find good writings on the dynamics of emerging market countries, but Tavakoli has included good work in both of her books, although that is not her emphasis. Her last book had a chapter on currencies and credits in crisis. I read "Credit Derivatives" shortly before the Russia crisis, and the analysis of hedging convertibility protection held up during the crisis. The analysis of currency devaluation in Iran and Venezuela was first rate.In this book, Tavakoli talks about Turkey. I used this information as part of a presentation. I just wish there was more detail in the bibliography on sources of statistics and information for emerging markets. All the statistics were accurate, but I had to go to four different sources for more detail. Our in-house economist also used this as a reference. My only complaint is that there is so little good work done in emerging markets that I would like to see more on this topic, perhaps an entire book on this specialized subject from this author with the kind of insightful detail she's included here. This is a well-researched book, and Tavakoli is not only a structured finance expert, she's a fine economist.
Rating:
Summary: Excellent Resource for Investors
Review: For investors who need to know more about structured finance including new synthetic securitizations using credit derivatives technology, this book is a great resource.
Rating: 
Summary: Technically average with some industry color
Review: From the vantage point of an experienced financial risk management professional, I found this treatise on CDOs and other structured financial products a technically average effort. I do believe that Tavakoli's book would be useful to those looking for an introduction to such financial instruments and those seeking some industry color; she does provide real life examples to help the book along. As correctly noted in a previous review, the author seems more cautionary or paranoid of the use of these types of financial instruments. Obviously a case can be made that intentionally misused or ignorantly applied, these financial instruments can be lethal. Although an unlikely possibility, this type of book should be read by any director of a public company that uses these instruments. If on the other hand you are seeking a solid technical resource, my opinion would be to look elsewhere.
Rating:
Summary: Over promised, under delivered
Review: Having worked in the financial risk management business for more than 15 years with significant experience in structured financial instruments, the book was not particularly useful to me. I believe the book may be of use for training young associates in need of a primer. The author uses relevant examples which would be helpful to those with little context. The tone of the book would lead me to conclude that author is quite cynical regarding the actual use of CDO's and other structured products. I don't think anyone working in the business would find much new here; certainly not a reference book.
Rating:
Summary: Excellent Overview of Synthetics
Review: I just completed this book and read "Credit Derivatives" this summer. I am a quant and derivatives specialist and was most interested in the chapters on synthetic securitization - securitizations using credit derivatives technology. This gives very clear explanations and useful examples of the various structures in use in the market.
Rating:
Summary: Authoritative and Clear Account of Structured Finance
Review: I noticed the same reviewer seems to have posted multiple negative reviews for this book and Tavakoli's credit derivatives book. One of the reviews echoes the words of a fellow who is coming out with his own books on these subjects, so there may be a motive of self-interest. In that respect the one and two star reviews may be a form of envious homage. I'm a 5-year veteran in credit derivatives trading. I hedge synthetic collateralized debt obligations (CDOs) and manage the risk for single tranche CDOs. I was very glad to receive this book and like it as much as Tavakoli's book on credit derivatives. Tavakoli clearly defines terms. She then clearly explains the products. There are many aspects of the structuring I wasn't aware of that are explained as an entertaining read in this book. Our structuring group liked this book as much as I did, and bought copies for everyone on the desk, and bought copies for customers. I work for one of the well managed banks that has been providing good value for customers, but I was happy to see Tavakoli talk about how customers have often been ripped-off and she suggests how customers can avoid this - for instance by dealing with my bank. I liked the way the various structures are explained from the bottom up. Tavakoli makes it seem easy to understand the various complex components and the structural options. The section on language and gaming is especially important. The debate on deal managers both for and against, and the inconsistency of the rating agencies both internally and externally is clearly explained. That isn't necessarily a bad thing, since we want rating agencies to take independent views, but it is important to realize that discrepancies in the approach to rating structured products exist. Tavakoli did an excellent job of explaining this so that there are no misunderstandings. I also enjoyed the account of non-CDO structured finance products, since I may gravitate to the structuring side of the business in future.
Rating:
Summary: Clearly Defines Risks and Rewards
Review: I second the review below. Tavakoli's remarks on Turkey in Chapter 10 of "Collateralized Debt Obligations and Structured Finance" are prescient. Reinsurance companies, European banks, and rating agencies all denied there were serious potential problems even when Tavakoli's remarks about ratings were brought up at one of our securitization deal meetings last month. Turkey just announced the world's biggest bank fraud. It appears Imar bank, run by members of the Uzan family, has a $6 billion gaping black hole. Initially, Turkey thought it was only $500 thousand, but now puts the deficit at more than $6 billion. The Uzan's were fined $4 billion by a US court in July in the alleged fraud against Motorola's mobile phone division. The $4 billion appears as unrecoverable as Imar bank's deposits. Apparently Cem Uzan's contributions to Prince Charles's charities and hobnobbing with royalty have no influence in US courts. Not only does it appear Imar Bank sold non-existing treasury bonds to clients, it appears more than 20 people destroyed bank records that indicated they illegally embezzled funds. Deals linked to a bank like this may have no protection from documentation that was altered due to fraud or destroyed. Tavakoli pointed out the rating agencies didn't fully capture this risk, especially in future flows deals that relied on the integrity of documentation and proper instructions to offshore banks. The worst case scenario she mentions as a caveat has become a grim reality.
Rating:
Summary: A Must for Risk Managers
Review: I would highly recommend CDOs and Structured Finance to anyone with a need to understand the theory, mechanics, risks and real world applications of CDOs, securitization, and synthetic credit structures (now I finally understand the difference between the three!). Very thorough and comprehensive yet easy-to-understand read on a growing field.
Rating: 
Summary: Collateralized Debt Obligations and Structured Finance
Review: Strange how the reviewer(s) from NY, SF, and London (who rank this book with 1 or 2 stars) all write in the same style, all are anonymous once and identified once, and the same reviewer(s) wrote essentially the same reviews on Tavakoli's 2001 book. Who is gaming whom? My first impression of this book is good - I have only skimmed it so far - but I believe it is worth my time for a thorough study. No, I am not a 'trainee' - I have been trading commodities and currencies since the mid 1970s.
Rating:
Summary: Delves Rather Deeply Into Structural Problems and Solutions
Review: The author's real world experiences make this market sound very interesting and even amusing especially The Hammer. Tavakoli gives a top-notch explanation of the evolution of the synthetic market and then discusses current structures and explains the relative strengths and weaknesses of various current deals on the market. Tavakoli also makes a case for credit derivatives over many of the insurance (non-monoline) products currently in the market.
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