Municipal Finance

When It Comes To Showing Savings From Refunding, Cost Is No Object

The Bond Buyer - May 18, 2021

Andy Kalotay calls to task the lobbying effort by muni trade assocations to restore advance refunding. He notes that the primary beneficiaries of the resulting churning would be the transaction infrastructure, at the expense of the municipal issuers and their taxpayers. The source of the problem is that 5% bonds are callable at par, and then refunded even if interest rates increase.

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Interest Rate Risk Management of Municipal Bonds

By Andrew Kalotay with foreword by Stephen Winterstein

"This work is the culmination of Dr. Kalotay's intellectual pursuit of what works and what should be reexamined in the municipal bond market. No shrinking violet, he challenges the orthodoxy and examines its problems from fresh and distinctive angles. The reader will find his contribution an unparalleled resource."

Stephen Winterstein, Head of Municipal Fixed Income, MarketAxess Holdings Inc.

Available now on Amazon.

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Par Munis — Sub-Par Performance

By Andy Kalotay and Guy Davidson, January 2021

Managing Duration Extension and Negative Convexity Near Par

The Bond Buyer - October 20, 2020

Negative Convexity

Tax-neutral analytics are key to accurately measuring interest rate sensitivity of munis near par.

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