Bond Valuation and Structuring

The Challenge of Managing Credit Spreads: New Tools on the Horizon

Journal of Applied Corporate Finance (Fall 1999)

While corporate credit spreads vary just as underlying Treasury yields do, they are harder for corporate treasurers and other market participants to hedge against. Standard & Poor’s credit indices derived from market prices of selected liquid bonds offered a means to revolutionize the mangement of credit spreads.

Everything You Always Wanted to Know About Ratchet Bonds

BondWeek (July 13 1998)

The Tennessee Valley Authority’s putable automatic rate-reset securities (PARRS) issued in 1998 were the first-ever ratchet bonds – a revolutionary structure that captures virtually all the advantages of conventional bonds for both borrowers and investors, while eliminating the disadvantages. Andrew Kalotay first proposed the ratchet bond concept to TVA and worked with the agency to structure the PARRS security.

Mickey Mouse Analysis

F&T Risk Advisor (December 1993)

The reams of misconceived media commentary inspired by Walt Disney Co.’s sale of a 100-year bond in 1993 were like cartoon punches, full of exclamation points but lacking real power.

How to Succeed in Derivatives without Really Buying

Journal of Applied Corporate Finance (Fall 1993)

Understanding the derivatives market can help a treasurer distinguish between good and bad pricing in the cash market. By using a synthetic benchmark for comparison, Andrew Kalotay Associates persuaded Niagara Mohawk to reject a seemingly attractive refunding transaction that would have squandered roughly $1.5 million in potential cash savings.

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