Meanwhile, analysts are puzzled how Merrill reduced its net exposure to $15 billion from the $32 billion disclosed in its third quarter report, with only $6 billion in write-downs. Mayo said that leaves the question of how Merrill reduced the other $11 billion. Janet Tavakoli, a structured finance analyst, said in a note last week that Merrill had asked hedge funds to take its troubled assets for a year in an off-balance sheet credit facility. The effect of such a deal would reduce Merrill exposure to CDOs, but only temporarily.