Rating: 
Summary: Practical Finance
Review: The real world experience and explanation of terminology and credit enhancement techniques and sound theory on how to structure and value structures makes this book refreshing relative to anything else I've read on structured financial products.
Rating:
Summary: Collateralized Debt Obligations & Structured Finance
Review: This book combines expertise and readability in the style of Tavakoli's "Credit Derivatives". I would expect it to become a classic in this market as is her other book in the credit derivatives market. This book has particularly nice coverage on SPEs. Her explanation of the evolution of CDOs from balance sheet deals to arbitrage deals includes lots of practical examples and clear graphics. Tavakoli's insights are especially valuable when highlighting caveats introduced by the rapid growth of credit derivatives technology in structured finance. She recommends structural approaches to getting fair value for both structurers and investors. Much of the information on synthetics is new material, and losses that are just now being realized in the market place might have been avoided had this book been available six months ago. Tavakoli also predicts products that will wane and the products that will experience a growth spurt - such as the secured trust -in the Basel 2 environment.
Rating: 
Summary: Little value for the experienced professional
Review: This book was a disappointment to me and will likely disappoint anyone that has been in the business of managing financial risk for a while. For people that are just starting their careers in the field, this may be a good starting point. I don't believe the book offers any new insight into the uses and abuses of CDOs and synthetics. I was looking for insight and inspiration for better methods and possible new product ideas. This is not the book. The color commentary of industry abuses used in the book as examples might be of interest to newbies, but old news to anyone else. This is a one-star rating for anyone with experience in the business.
Rating:
Summary: Excellent Resource for Investors
Review: This book was exactly what I was looking for--- understanding what the heck credit derivatives are and how they are used. As a recently hired executive assistant to a partner in a large investment banking firm, I needed to quickly learn the jargon of the financial risk management business. This book was just fabo! Good graphs. Simple declarative sentences for easy comprehension.
Rating:
Summary: Fabulous treatment of difficult subject!
Review: This book was exactly what I was looking for--- understanding what the heck credit derivatives are and how they are used. As a recently hired executive assistant to a partner in a large investment banking firm, I needed to quickly learn the jargon of the financial risk management business. This book was just fabo! Good graphs. Simple declarative sentences for easy comprehension.
Rating:
Summary: Structured Finance for the 21st Century
Review: This deserves more than 5 stars. As a finance professional with almost ten years of experience, I was both educated and entertained. I especially enjoyed Tavakoli's explanations of abuse in a variety of structured finance deals both past and present. She also maintains that Sarbanes-Oxley is no deterrent as long as corporations and not individuals feel the brunt of the consequences. I finally understand Enron's abuse of offshore vehicles, the involvement of investment banks, and insurance companies (sureties). Tavakoli even explains motives and why finance professionals went along with it: profits, politics, and pluralistic ignorance. She makes the case that the players were well aware of what they were doing. She uses game theory to describe the moves the players made against each other when they tried to recover losses - or avoid making payments against claims - after Enron went bankrupt. Tavakoli explains why banks have left themselves open to dangerously high concentrated credit exposures, fraud, and structured finance gaming. She explains how false social evidence, lack of due diligence, and lack of sufficient reserves further contributed to the problem. She recommends viewing ratings on structured finance products with skepticism, especially where documentation risk and cash flow diversion are involved. I was astonished to learn that products are being sold as AAA rated product, when it really is more like a AA rated product, or even worse. The explanation of synthetic securitizations using credit derivatives is the best I've ever read. Tavakoli thoroughly discusses the language risks, cash flow risks, and rating risks. She compares a cash CDO with a 5-year maturity synthetic CDO. This is the first time I fully understood how these deals work. I was surprised to learn that there is no standard definition of a super senior tranche, and no one - not rating agencies, regulators, or bank managers - has challenged this. In summary, this book is even better than "Credit Derivatives" by the same author, and that book was a very good book. This book belongs on the bookshelves of investors, structurers, regulators, and managers.
Rating:
Summary: Products in Structured Finance made Clear
Review: This is a good resource for products and applications in the global structured finance market. Like Tavakoli's book "Credit Derivatives" this is a comprehensive reference guide for structured finance products: offshore SPEs, CDOs, and other securitizations. She also discusses legal issues, regulatory issues, and pivotal recent case studies where the unwary have risk in the global structured finance markets. Tavakoli mentions caveats, particularly for managers and investors, but also offers ways to cure the caveats.
Rating: 
Summary: Technical book with attitude
Review: This is a technical book with an attitude. The attitude, to my read, is that synthetics are a devil's brew in the hands of the unscrupulous. Tavakoli's book provides a good overview of the CDO and structured finance markets and some of the mischievous behavior (high risk, hard to assess/value) that generally reputable organizations have engaged in. It seems to this reader that Tavakoli's net opinion of CDOs is that these financial instruments, while able to hedge legitimate financial exposure, are dangerous. The author doesn't come right out and say it, the weight of dangers versus benefits is far and away toward the negative. Odd as it may seem, this is a technical 'kiss and tell' book. It is almost as if the author wanted to write a book like the popular book Liar's Poker; but with charts and formulas-- with an odd result! While most technical books are written in an academically detached style, providing different points of view but never an assessment, Tavakoli seems to have written a book of warning; negatives outweigh positives. The author uses experiences and examples from past employers and quasi-insider information and data to make her book interesting. Tavakoli's well-traveled staff career, a series of short stays, certainly has provided a wealth of colorful examples that help the readability of this book. The book is a good and thorough primer with a dose of attitude. If you are a practitioner, I don't believe this book will increase your technical knowledge. However, if you are seeking a basic understanding of these financial instruments, mechanics and risks, with a bit of industry color, this is a recommended read.
Rating:
Summary: Magnum Opus
Review: This is a terrific book for anyone, any level of competency that wants to or needs to now about collateralized debt obligations and structured finance; particularly new developments in cash and synthetic securtizations. The author is so insightful and clever in explaining these complicated financial instruments it is almost beyond words; as well as beautiful and articulate. This book would be an excellent stocking stuffer for any financial risk management professional or as an office gift for any support staff or assistants. This magnum opus is an excellent reference book with solid and consistent definitions, descriptions and real world examples. No doubt this financial treatise by Tavakoli will become the textbook of choice for any graduate school developing a curriculum on financial risk management. If it was possible to give this book ten (10) stars, I would.
Rating:
Summary: A great approach to CDO¿s and Structured Finance.
Review: This one definitely deserves a five-star review. Writing a finance book about such sensitive issues could be compared to being a politician, will never please everyone. Some will support you some will not, some will love you some will not. Tavakoli did a great job writing a book in a subject that is still new and unknown for quite a few financial professionals around the globe, and she did it in a way that is easy and fun to read without sacrificing technicalities. She did an excellent job at describing the structured products, and giving us real life experiences including names and interesting details. A mandatory reading for all those interested in the field.
| 
