In creating fixed-income analytic models, Andrew Kalotay Associates draws upon pioneering research published by Dr. Kalotay and his associates over more than three decades. A member of the Fixed Income Analysts Society’s Hall of Fame, Dr. Kalotay’s innovations include the ratchet bond and ratchet mortgage; the Volatility Reduction Measure (for hedge effectiveness testing under FAS 133); and the concepts of refunding efficiency as applied to both corporate and municipal bonds and mortgages. He has authored or co-authored more than 50 journal articles on a wide range of topics. 


Bond Valuation and Structuring

Debt Management

Municipal Finance

Trade Press

Wealth Management

Consumer Finance



Recent Research

Making Debt Pay

Forbes (August 8, 1988)

A concise, one-page profile of how Dr. Kalotay’s early work on refunding efficiency helped Salomon Brothers dominate the refinancing segment of the corporate debt market and make inroads among international bond issuers seeking to manage currency risk.

Refunding Considerations under Rate-Base Regulation

Financial Management (Autumn 1984)

Several public utility commissions adopted in their rate-making policies this paper’s recommendations for treating the call premium when a utility retires debt at a price above par.

An Analysis of Original Issue Discount Bonds

Financial Management (Autumn 1984)

Zero-coupon and other bonds issued at a discount first appeared in 1981. Comprehending OID bonds requires understanding how taxes, interest rate risk, and call and sinking fund provisions influence their value differently than traditional par bonds.

Optimum Bond Calling and Refunding

Interfaces (November 1979)

One of the earliest published explanations of the concept of efficiency in calling and refunding bonds, this paper explains how analytical techniques developed at Bell Labs and AT&T influenced the Bell System’s decisions to refund more than $2 billion of callable debt during 1976 and 1977.

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