Investortools Incorporates Kalotay’s After-tax Muni Bond Analytics into Perform


Investortools Incorporates Kalotay’s After-tax Muni Bond Analytics into Perform®

Approach is Essential for Proper Risk Management of Munis

New York, November 3, 2015 – Kalotay Analytics, a provider of high-speed, high precision fixed income libraries, and Investortools, whose platform is utilized by over 250 financial institutions to support portfolio management and credit analysis, have released to Perform® clients enhanced tax-aware tax municipal bond analytics using Kalotay’s patent-pending approach.

Managers are often caught off guard when interest rates rise and the prices of lower coupon bonds drop much more precipitously than predicted by traditional risk calculations. The reason is that when prices fall below par, traditional calculations fail to account for the tax payable at maturity on the discount, which pushes prices down further.

"Incorporating tax treatment is vital for proper risk management of munis. The enhanced analytics will allow market participants to more accurately quantify the sensitivity of holdings to rate movements. We’re delighted to partner with Investortools to bring this innovation to the market,” said Andy Porter, Managing Director of Business Development at Kalotay Analytics.

"Investortools is excited to offer our clients cutting-edge Option Adjusted analytics that take into consideration the real world effect of taxes in the determination of municipal bond prices,” said Stuart Graydon, Chairman of Investortools. Dan Garrett, Vice President of Investortools added, “With the new Kalotay functions, portfolio strategists won’t be blindsided when there is a sudden rise in interest rates."

NewsRandy Soraich