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

Tax Differentials and Callable Bonds

Journal of Finance (September 1979)

When a borrower has a higher tax rate than the lender; on an after-tax basis both parties benefit from a callable bond compared with either a noncallable or putable one. Because corporations are taxable and major lenders such as pension funds are not, this explains the prevalence of callable corporate bonds and the rarity of putable bonds.
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