AKA Debt Advisory Services

Andrew Kalotay Associates is recognized as one of Wall Street's most sophisticated independent debt management and advisory firms with clients such as major corporations, federal agencies, and municipalities. Experience blended with knowledge has created this highly innovative, sophisticated, focused advisory and management service for debt issuance, refunding, restructuring, and defeasance. AKA's services employ sophisticated, leading-edge analytics combined with sound financial engineering methods to devise innovative solutions to client debt management challenges.

Providing Unbiased, Independent Advice

• Identify the best financing alternative, factoring in transaction costs and taxes
• Determine optimum refunding strategies for calls and repurchases
• Reverse engineer structured products such as synthetic put bonds and equity-linked notes to determine fairness of proposal

Leveling The Playing Field

• Provide up-to-date market information such as implied volatilities and interest rate derivatives
• Employ high-precision analytics to identify value
• Protect issuers from "transactions for transactions sake"
• AKA Evaluation of Proposed Derivative Transactions for the City of Midwest

Providing A Competitive Edge

• Conduct peer group comparisons to identify competitors' interest rate exposure
• Advise on portfolio-based funding and hedging strategies to meet corporate objectives
• Develop a benchmarking and performance measurement framework to determine liability return relative to peers.

Making Debt Pay Through Innovation

• Introduced the Ratchet Bond, a superior alternative to callable bonds that eliminates the inefficiencies of corporate call decisions. (Over $1 bn issued by the Tennessee Valley Authority)
• Formulated concept and provided calculator for Standard & Poor's Credit Indices allowing issuers and investors to hedge exposure to credit spreads
• Developed the Volatility Reduction Measure (patent pending) to provide clients with a rigorous yet straightforward way to meet FAS 133 hedge effectiveness testing requirements

Assisting With Statutory Reporting

• Perform Valuation for FAS 107 and FAS 133 reporting
• Perform hedge effectiveness testing to qualify for hedge accounting treatment under FAS 133
• Support risk management efforts with scenario and horizon analyses