NEW YORK, Nov. 3, 2015 /PRNewswire/ -- Kalotay Analytics, a provider of high-speed, high precision, fixed income valuation 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 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 at Kalotay Analytics.
"Investortools is excited to offer our clients cutting-edge option adjusted analytics that takes into consideration the real-world effect of taxes on 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."
About Kalotay Analytics
Employing its patented technology, Kalotay Analytics provides lightning fast fixed income valuation libraries and risk measurement tools to major market participants. Applications include real-time pricing of bond ETF's, risk management, and pre-trade analysis.
For more information about Kalotay Analytics, please visit: www.kalotay.com.
Investortools, Inc. has been a leading provider of fixed income tools for over 30 years.
Investortools software is used by over 250 financial institutions to manage the daily challenges unique to fixed income portfolio management and credit analysis. Customizable by design, our software enables streamlined and precise reporting, risk-return attribution, stress-testing, trading, compliance, and much more to meet your specific needs. Mutual fund groups, high net worth / SMA account managers, banks, and insurance companies are among the many firms that entrust Investortools to meet their needs.
For more information about Investortools, please visit www.invtools.com.
Tel: +1 212-482-0900 ext. 1
Dan Garrett, CFA
Tel: +1 630-845-2784
SOURCE Kalotay Analytics; Investortools