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UNITED STATES SECURITIES AND
    EXCHANGE COMMISSION
 Washington, D.C.
    20549
  Form 10-K
  þ

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)  OF THE
    SECURITIES EXCHANGE ACT OF 1934For the fiscal year
    ended: December 31, 2007- or -o

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934   Commission File Number:
    000-51003
  Calamos
    Asset Management, Inc. (Exact
    name of Registrant as specified in its charter)
  Delaware

32-0122554(State or other jurisdiction
    of
    incorporation or organization)

(I.R.S. Employer
    Identification No.)2020 Calamos Court,

60563Naperville, Illinois

(Zip Code)(Address of principal executive
    offices)   Registrants telephone number, including area code:
 630-245-7200
  Securities registered pursuant to Section 12(b) of the
    Act:
   Title of each
    class

Name of each exchange on
    which registeredClass A Common Stock, $0.01 par value

The NASDAQ Stock Market LLC   Securities registered pursuant to Section 12(g) of the
    Act:
 None
  o þ
  o þ
  þ o
  Regulation S-K Form 10-K Form 10-K. þ
  12b-2
  Large accelerated
    filer o

Accelerated
    filer þ

Non-accelerated
    filer o

Smaller reporting
    company o(Do not check if a smaller reporting company)   Rule 12b-2 o þ
      DOCUMENTS
    INCORPORATED BY REFERENCE




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PART I
  Item 1.
    Business  we, us, our our company
    Calamos Advisors
  Calamos Family Partners
  Calamos Global Funds Offshore
    Funds
  Calamos Financial Services
  Calamos Interests
    mutual funds open-end
    funds
  Overview
     2




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Business
    Strategy
        Maintain
    Superior Investment Performance
  (1)
    (1) 12/31/07: Growth Fund: Market Neutral Income Fund: Global Growth and Income
    Fund: Form 10-K
 3




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Focus
    on Clients, With an Emphasis on Serving Long-Term
    Investors
    4-quarter
  Selectively
    Expand Our Investment Strategies
      Expand
    Our Distribution Relationships
    Expand
    and Diversify Our Client Base
   4




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non-U.S. markets non-U.S. investors
  Capitalize
    on Our Recognized and Respected Brand
  Consumer Reports Investors Business Daily Investment News
  Investment
    Philosophy, Management and Process
  Investment
    Philosophy
        Investment
    Management
   5




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Investment
    Process
      
    Assess Business Value.  We analyze businesses
    as would a buyer of the entire company, analyzing financial
    statements to determine an economic enterprise value.
    Assess Security Value.  Once we understand the
    value of a business, our investment team focuses on individual
    security values within its capital structure.
    Assess Investment Opportunities.  By
    understanding all aspects of a companys capital structure,
    we seek to identify opportunities across asset classes (where
    applicable), as well as investment strategies.
    Assess the Opportunitys Role in the
    Portfolio.  Using risk management and portfolio
    construction techniques, we determine whether an individual
    security has a place in our investment portfolios and strategies.     6




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##### Table of Contents



Investment
    Strategies
    Equity

$
22.7


Invests in a range of U.S. and global companies of various
    market capitalization under both growth and value disciplinesBalanced


14.1


Invests in dynamic blend of convertible securities, equities and
    high yield securities, both in the U.S. and globallyConvertible


4.7


Invests primarily in convertible securitiesHigh Yield


2.8


Invests in high yield securities or junk bonds, as
    well as higher-yielding convertible securitiesAlternative


1.7


Invests in non-traditional strategies, including market neutral,
    convertible arbitrage and leveraged equity, among othersFixed Income


0.1


Invests in U.S. investment-grade bond market, as well as
    international high-yield securitiesMoney Market


0.1


Invests exclusively in U.S. Government Agency obligations and
    repurchase agreements collateralized by U.S. Government Agency
    obligations and excludes $0.8 of our mutual funds short
    term cash.Total

$
46.2   Investment
    Products
    Mutual
    Funds
    Open-End
    Funds
       7




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Assets UnderFund and

Management atTicker Symbol

December 31, 2007


Year of(A Shares)

(in billions)


Inception


DescriptionGrowth
    CVGRX

$
16.1



1990


Seeks long-term capital growth by investing in domestic equities
    identifying companies with higher growth relative to peersBlue Chip
    CBCAX


0.1



2003


Seeks long-term capital growth by investing in equities of
    larger, established U.S. companies with balance sheet strength,
    which can help mitigate downside riskValue
    CVAAX


0.1



2002


Seeks long-term capital growth by investing in the equities of
    domestic companies that are trading well below their intrinsic
    values but possess identifiable potential catalysts that can
    spur them to normal levelsInternational Growth
    CIGRX


0.5



2005


Seeks long-term capital growth by targeting securities of
    non-U.S. companies that demonstrate acceleration in revenue
    growth, earnings growth and return on capitalGlobal Equity
    CAGEX


0.1



2007


Seeks long-term capital growth by investing in global securities
    of companies with balance sheet strengthGlobal Growth and Income
    CVLOX


1.4



1996


Seeks high long-term total return through capital appreciation
    and current income, while offering a defensive approach to
    equity exposure by strategically allocating stocks, convertible
    and fixed-income securities among countries and security typesMulti-Fund Blend
    CMQAX


n/a



2006


As a fund of three Calamos funds, seeks long-term capital growth
    and, secondarily, current income by investing in the I shares of
    the Growth Fund, Global Growth and Income Fund, and Value FundGrowth and Income
    CVTRX


6.2



1988


Seeks high long-term total return through growth and current
    income by allocating investments among equity, convertible and
    fixed-income securitiesHigh Yield
    CHYDX


0.2



1999


Seeks the highest level of current income obtainable with
    reasonable risk, with a secondary objective of capital
    appreciation, by combining higher-yielding fixed income and
    convertible securities to achieve greater equity sensitivity
    than a traditional non-convertible fixed income allocationTotal Return Bond
    CTRAX


0.1



2007


Seeks total return, consistent with preservation of capital, by
    investing across the broad sectors of the U.S. investment-grade
    bond market, as well as international high-yield securitiesConvertible (1)
    CCVIX


0.7



1985


Seeks current income, with a secondary objective of capital
    growth, by investing in convertible securities issued by both
    U.S. and foreign companiesMarket Neutral Income
    CVSIX


1.6



1990


Seeks high current income consistent with stability of principal
    by dynamically combining complementary income-producing
    strategies such as convertible arbitrage and covered call writingGovernment Money Market
    CGIXX


0.1



2007


Seeks current income consistent with liquidity and stability of
    capital, by investing exclusively in U.S. Government Agency
    obligations and repurchase obligations collateralized by U.S.
    Government Agency obligationsCalamos Global Funds


0.2



2007


Four funds offered to non U.S. investors, including the Calamos
    Growth Fund, the Calamos U.S. Opportunities Fund, the Calamos
    Global Opportunities Fund and the Calamos Global Equity FundTotal

$
27.4     (1)
    
    Closed to new investments, effective April 30, 2003. 8




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four stars five
    stars (2)
  Closed-End
    Funds
        Assets UnderManagement atDecember 31, 2007


Year ofFund and Ticker

(in billions)


Inception


DescriptionConvertible Opportunities and Income 
    CHI

$
1.1



2002


Seeks total return through a combination of capital appreciation
    and current income by investing in convertible and
    non-convertible fixed-income securitiesConvertible and High Income CHY


1.4



2003


Seeks total return through a combination of capital appreciation
    and current income by investing in convertible and high-yield
    fixed-income securitiesStrategic Total Return 
    CSQ


3.5



2004


Seeks total return through a combination of capital appreciation
    and current income by investing in equity, convertible and
    high-yield fixed-income securitiesGlobal Total Return
    CGO


0.2



2005


Seeks total return through a combination of capital appreciation
    and current income by investing in a globally diversified
    portfolio of equity, convertible and high-yield fixed-income
    securitiesGlobal Dynamic Income
    CHW


1.2



2007


Seeks total return through high level of current income and
    capital appreciation by investing in equity and fixed-income
    securities, and alternative investments around the worldTotal

$
7.4     (2) 10-year 90-day 90-day Form 10-K
 9




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Separate
    Accounts
    Institutional
    Accounts
      Managed
    Accounts
      Alternative
    Investments
     10




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Other
    Advisory Services
  Wealth
    Management
      Investor
    Services
    Distribution
    Relationships
      Other
    Considerations
  Technology
    and Intellectual Property
     11




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Competition
      Regulatory
    Environment
       12




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Employees
    SEC
    Filings
  Form 10-K, Form 10-Q, Form 8-K, www.calamos.com.
  Item 1A.
    Risk
    Factors  Business
    Risks
    Risks
    Related to Our Industry
  Changes
    in laws or regulations or in governmental policies could limit
    the sources and amounts of our revenues, increase our costs of
    doing business, decrease our profitability and materially and
    adversely affect our business.
   13




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The
    asset management business is intensely
    competitive.
        To the
    extent we are forced to compete on the basis of price, we may
    not be able to maintain our current fee structure.
    We
    derive a substantial portion of our revenues from contracts that
    may be terminated on short notice.
   14




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Investors
    in the open-end funds can redeem their investments in these
    funds at any time without prior notice, which could adversely
    affect our earnings.
    A
    decline in the prices of securities would lead to a decline in
    our assets under management, revenues and
    earnings.
  and/or Rule 12b-1 Rule 12b-1 Rule 12b-1
  Catastrophic
    and unpredictable events could have a material adverse effect on
    our business.
      Risks
    Related to Our Business
  Control
    by Calamos family members of a majority of the combined voting
    power of our common stock may give rise to conflicts of
    interests.
   15




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The
    loss of key executives could have a material adverse affect on
    our business.
    We
    depend on third-party distribution channels to market our
    investment products and access our client base.
  Rule 12b-1 and/or Rule 12b-1 Rule 12b-1
   16




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Our
    ability to operate our company effectively could be impaired if
    we are unable to attract and retain qualified
    personnel.
      We
    derive a substantial portion of our revenues from a limited
    number of our products.
      We are
    dependent on Calamos Holdings LLC to distribute cash to us in
    amounts sufficient to pay our tax liabilities and other
    expenses.
    We
    intend to pay regular dividends to our stockholders, but our
    ability to do so is subject to the discretion of our board of
    directors and may be limited by our holding company structure
    and applicable provisions of Delaware law.
   17




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A
    change of control of our company would automatically terminate
    our investment management agreements with our clients, unless
    our separate account clients consent and, in the case of fund
    clients, the funds boards of trustees and shareholders
    voted to continue the agreements, and could prevent us for a
    two-year period from increasing the investment advisory fees we
    are able to charge our mutual fund clients.
      We
    require specialized technology to operate our business and would
    be adversely affected if our technology became inoperative or
    obsolete.
        Damage
    to our reputation could adversely affect our
    business.
   18




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Risks
    Related to the Company
  The
    disparity in the voting rights among the classes of shares may
    have a potential adverse effect on the price of our Class A
    common stock.
    Future
    sales of our Class A common stock in the public market
    could lower our stock price, and any additional capital raised
    by us through the sale of equity or convertible securities may
    dilute our stockholders ownership in us.
    and/or
      The
    Calamos familys beneficial ownership of our Class B
    common stock, as well as anti-takeover provisions in our amended
    and restated certificate of incorporation and bylaws, could
    discourage a change of control that our stockholders may favor,
    which could negatively affect our stock price.
   19




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If the
    Internal Revenue Service disallows all or any portion of the tax
    amortization deduction allocated to the company in association
    with the section 754 election made by Calamos Holdings LLC, such
    action could have a material adverse effect on our
    business.
    Item 1B.
    Unresolved
    Staff Comments    Item 2.
    Properties    Item 3.
    Legal
    Proceedings    Item 4.
    Submission
    Of Matters To A Vote Of Security Holders   20




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PART II
  Item 5.
    Market
    for Registrants Common Equity, Related Stockholder Matters
    and Issuer Purchases of Equity Securities      Market Price Range


Cash Dividends2007


2006


per ShareHigh


Low


High


Low


2007


2006First Quarter

$
28.75


$
21.89


$
39.43


$
30.72


$
0.11


$
0.09Second Quarter

$
26.31


$
21.98


$
44.10


$
26.14


$
0.11


$
0.09Third Quarter

$
28.53


$
20.08


$
30.40


$
24.23


$
0.11


$
0.09Fourth Quarter

$
34.61


$
25.88


$
31.85


$
26.42


$
0.11


$
0.09       Equity
    Compensation Plan Information
    As of December 31, 2007
  Number of SecuritiesRemaining Availablefor Future IssuanceNumber of Securities


Weighted-Average


Under Equityto be Issued upon


Exercise Price of


Compensation PlansExercise of


Outstanding


(ExcludingOutstanding Options,


Options, Warrants


Securities ReflectedWarrants and Rights


and Rights


in Column (a))Plan Category

(a)


(b)


(c)Equity compensation plans approved by security holders:Stock options


1,813,585


$
26.35



(1
)Restricted stock units


1,046,270







(1
)Equity compensation plans not approved by security holders










Total


2,859,855


$
16.71



6,675,297
(1)     (1)
    
    A combined total of 10,000,000 shares of Calamos Asset
    Management, Inc.s common stock may be issued under the
    stock option and restricted stock unit plans. During the twelve
    months ended December 31, 2007 and 2006,
    231,249 shares and 233,599 shares, respectively, were
    exercised under the restricted stock unit plan. 21




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(c)


(d)Total Number of


Maximum NumberShares Purchased as


of Shares that may(a)


(b)


Part of Publicly


be PurchasedTotal Number of


Average Price Paid


Announced Plans or


Under the Plans orShares Purchased


per Share


Programs


ProgramsOctober 1  October 31, 2007





$








2,000,000November 1  November 30, 2007


253,300



27.92



253,300



1,746,700December 1  December 31, 2007


198,800



27.54



198,800



1,547,900Total


452,100


$
27.76



452,100



1,547,900  22




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Performance
    Graph
  Total
    Return Performance
  
  Period EndedIndex

10/28/04


12/31/04


12/31/05


12/31/06


12/31/07Calamos Asset Management, Inc.


100.00



135.54



159.57



137.76



155.42S&P 500 Index


100.00



107.49



110.72



125.80



130.24SNL Asset Manager Index


100.00



114.57



145.71



168.98



192.36  23




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Item 6.
    Selected
    Financial Data      Form 10-K.
  Pro FormaCombined


Year EndedYear Ended December 31,


Nov. 2 to


Jan. 1 to


Year Ended


December 31,(in thousands, except share data)

2007


2006


2005


Dec. 31, 2004


Nov. 1, 2004


2004


2003(Predecessor)





(Predecessor)Income Statement Data:RevenuesInvestment management fees

$
325,395


$
329,383


$
284,951


$
41,787


$
168,938


$
210,725


$
109,052Distribution and underwriting fees


143,994



151,760



129,250



19,350



79,578



98,928



53,005Other revenue


4,088



4,029



3,366



633



1,861



2,494



328Total revenue


473,477



485,172



417,567



61,770



250,377



312,147



162,385Operating expensesEmployee compensation and benefits


91,039



73,382



61,029



12,537



53,170



65,707



33,657Distribution expenses


104,227



100,935



79,446



11,040



39,517



50,557



22,576Amortization of deferred sales commissions


27,249



32,924



31,431



5,109



24,315



29,424



19,879Marketing and sales promotion


40,833



15,631



14,738



2,263



16,881



19,144



9,184General and administrative


37,036



31,272



24,829



2,587



11,258



13,845



8,671Total operating expenses


300,384



254,144



211,473



33,536



145,141



178,677



93,967Operating income


173,093



231,028



206,094



28,234



105,236



133,470



68,418Other income (expense), net


29,901



12,381



5,761



1,016



(1,487
)


(471
)


25Income before minority interest in Calamos Holdings LLC and
    income taxes


202,994



243,409



211,855



29,250



103,749



132,999



68,443Minority interest in Calamos Holdings LLC


156,583



186,631



163,009



22,609







22,609



Income before income tax


46,411



56,778



48,846



6,641



103,749



110,390



68,443Income taxes


18,666



22,770



19,624



2,649



1,567



4,216



1,117Net income

$
27,745


$
34,008


$
29,222


$
3,992


$
102,182


$
106,174


$
67,326Earnings per shareBasic

$
1.24


$
1.47


$
1.27


$
0.18


$
1.06






$
0.70Diluted(1)

$
1.22


$
1.45


$
1.26


$
0.17


$
1.06






$
0.70Weighted average shares outstandingBasic(2)


22,297,170



23,161,998



23,000,100



22,700,100



96,800,000







96,800,000Diluted(1)


99,760,872



100,805,030



100,625,824



100,491,409



96,800,000







96,800,000  24




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As of December 31,2007


2006


2005


2004


2003(Predecessor)Balance Sheet Data (in thousands):Cash and cash equivalents

$
108,441


$
328,841


$
210,469


$
149,315


$
4,286Investment securities


535,476



142,675



128,265



90,444



9,296Partnership investments and offshore funds


342,943



86,409



79,662



60,506



1,771Total assets


1,217,672



791,788



665,309



516,445



103,777Long-term debt


525,000



150,000



150,000



150,000



23,008Total liabilities


602,553



208,848



205,292



191,335



57,353Minority interests


401,382



368,363



273,883



166,616



11Total stockholders equity


213,737



214,577



186,134



158,494



46,413Assets Under Management (in millions):Mutual funds


34,835



33,704



32,244



27,275



14,831Separate accounts


11,373



11,021



11,561



10,700



9,009Total assets under management

$
46,208


$
44,725


$
43,805


$
37,975


$
23,840     (1)
    
    In calculating diluted earnings per share for 2007, 2006, 2005
    and for the period November 2, 2004 to December 31,
    2004, the effective tax rates of 40.2%, 40.1%, 40.2% and 39.9%,
    respectively, were applied to income before minority interest in
    Calamos Holdings LLC and income taxes. Diluted shares
    outstanding for the periods after November 1, 2004 are
    calculated (a) assuming the Calamos Interests exchanged all
    of their membership units in Calamos Holdings LLC for shares of
    the Companys Class A common stock on a one-for-one
    basis and (b) including the effect of outstanding
    restricted stock unit and option awards.(2)
    
    Basic shares for the periods to November 2, 2004 reflect
    the 96,800,000 existing after giving effect to the formation
    transaction, whereby on October 15, 2004, Calamos Family
    Partners, Inc. contributed all of its assets and liabilities,
    including all equity interest in its wholly owned subsidiaries,
    to Calamos Holdings LLC in exchange for 96,800,000 of the
    membership units of Calamos Holdings LLC.  Item 7.
    Managements
    Discussion And Analysis Of Financial Condition And Results Of
    Operation   25




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Assets
    Under Management
    (in millions)

2007


2006


2005Mutual FundsOpen-end funds

$
27,434


$
27,303


$
26,303Closed-end funds


7,401



6,401



5,941Total mutual funds


34,835



33,704



32,244Separate AccountsInstitutional accounts


5,193



5,203



5,130Managed accounts


6,040



5,723



6,340Alternative investments


140



95



91Total separate accounts


11,373



11,021



11,561Total assets under management

$
46,208


$
44,725


$
43,805     
    purchases and redemptions of shares of the open-end funds and
    other investment products;
    the amount of non-reinvested capital gain distributions;
    fluctuations in the financial markets around the world that
    result in appreciation or depreciation of assets under
    management;
    our use of preferred securities offerings, commonly referred to
    as leverage;
    our ability to educate our target clients about our investment
    philosophy and provide them with
    best-in-class
    service;
    the relative investment performance of our investment products
    as compared to competing offerings and market indices;
    competitive conditions in the mutual fund, asset management and
    broader financial services sectors;
    investor sentiment and confidence; and
    our introduction of new investment strategies and products and
    our decision to close strategies when deemed in the best
    interests of our clients.  Investment
    Products
  Mutual
    Funds
    Open-End Funds.
 26




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Closed-End Funds.
  Separate
    Accounts
    
    Institutional accountsare separately managed accounts
    for institutional investors, such as public and private pension
    funds, public funds and endowment funds, and are offered
    directly by us through institutional consultants and through
    national and regional broker-dealers.
    Managed accountsare separately managed accounts for high
    net worth investors offered primarily through national and
    regional broker-dealers.
    Alternative investmentsinclude private investment
    vehicles, primarily hedge funds, offered directly by us to
    qualified individual and institutional investors.  Revenues
    
    total value and composition of our assets under management;
    the amount of non-reinvested capital gain distributions;
    market appreciation or depreciation;
    our use of preferred securities offerings, commonly referred to
    as leverage;
    investment performance relative to benchmarks and competitors;
    level of net purchases and redemptions, which represent the sum
    of new client assets, additional funding from existing clients,
    withdrawals of assets from and termination of client accounts,
    and purchases and redemptions of mutual fund shares; 27




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
    a determination by the independent trustees of the mutual funds
    to terminate or significantly alter the funds investment
    management agreements with us; and
    increased competition.  and/or Rule 12b-1
  
    total value and composition of our assets under management
    generally and by share class;
    market appreciation or depreciation; and
    the level of purchases and redemptions.  Investment
    Management Fees
        Distribution
    and Underwriting Fees
  and/or Rule 12b-1
  Rule 12b-1 and/or Rule 12b-1 Rule 12b-1
     28




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Other
    Revenues
    Operating
    Expenses
    
    variations in the level of total compensation expense due to,
    among other things, bonuses, changes in our employee count and
    mix, and competitive factors;
    changes in distribution and underwriting expense as a result of
    fluctuations in mutual fund sales, level of redemptions and
    market appreciation or depreciation of assets under management;
    the amount of
    Rule 12b-1
    distribution
    and/or
    service fees that we receive, as well as our continued ability
    to receive those fees in the future, which would affect the
    amortization expenses associated with the receipt of these fees;
    changes in the level of our marketing and promotion expenses in
    response to market conditions, including our efforts to further
    penetrate our existing distribution channels; and
    expenses and capital costs, such as technology assets,
    depreciation, amortization, and research and development,
    incurred to maintain and enhance our administrative and
    operating services infrastructure.    Employee
    Compensation and Benefits
      Distribution
    and Underwriting Expense
  Rule 12b-1 and/or
  Amortization
    of Deferred Sales Commissions
  and/or Rule 12b-1 Rule 12b-1
 29




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Rule 12b-1
  Other
    Operating Expenses
  and/or
  Impact of
    Distribution and Underwriting Activities
    2007


2006Distribution and underwriting fees

$
143,994


$
151,760Distribution and underwriting expense


(104,227
)


(100,935
)Amortization of deferred sales commissions


(27,249
)


(32,924
)Net distribution fees

$
12,518


$
17,901Net distribution fee margin


9
%


12
%     Class A shares Rule 12b-1 Rule 12b-1 Rule 12b-1
   30




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##### Table of Contents



Class B shares
  Rule 12b-1 Rule 12b-1 Rule 12b-1 Rule 12b-1 Rule 12b-1
    Class C shares
  Rule 12b-1 Rule 12b-1 12b-1 Rule 12b-1
  Rule 12b-1
 31




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##### Table of Contents



Class I shares Rule 12b-1
  Class R shares Rule 12b-1 12b-1 Rule 12b-1
  Class X shares Rule 12b-1
    Other
    Income (Expense), Net
    Minority
    Interest
  Minority
    Interest in Calamos Holdings LLC
       32




---



##### Table of Contents



Minority
    Interest in Partnership Investments
        Income
    Taxes
    Dilutive
    Effect of Issuance of New Shares of Class A Common
    Stock
     33




---



##### Table of Contents



Operating
    Results
  Year
    Ended December 31, 2007 Compared to Year Ended
    December 31, 2006
  Assets
    Under Management
    Year EndedDecember 31,


Change(in millions)

2007


2006


Amount


PercentMutual FundsBeginning assets under management

$
33,704


$
32,244


$
1,460



5
%Net purchases (redemptions)


(2,469
)


288



(2,757
)


*Market appreciation


3,600



1,172



2,428



207Ending assets under management


34,835



33,704



1,131



3Average assets under management


33,892



34,075



(183
)


1Separate AccountsBeginning assets under management


11,021



11,561



(540
)


5Net redemptions


(1,152
)


(1,107
)


(45
)


4Market appreciation


1,504



567



937



165Ending assets under management


11,373



11,021



352



3Average assets under management


10,877



11,605



(728
)


6Total Assets Under ManagementBeginning assets under management


44,725



43,805



920



2Net redemptions


(3,621
)


(819
)


(2,802
)


342Market appreciation


5,104



1,739



3,365



194Ending assets under management


46,208



44,725



1,483



3Average assets under management

$
44,769


$
45,680


$
(911
)


2
%     *
    
    Not meaningful.         34




---



##### Table of Contents



One-Time
    Activities
      Regulation S-K
  (in thousands)

2007


2006Operating expenses

$
300,384


$
254,144Termination of closed-end fund compensation agreements


19,500



Closed-end fund structuring fees


6,904



Operating expenses, as adjusted

$
273,980


$
254,144Operating income

$
173,093


$
231,028Termination of closed-end fund compensation agreements


19,500



Closed-end fund structuring fees


6,904



Operating income, as adjusted

$
199,497


$
231,028Net income

$
27,745


$
34,008Termination of closed-end fund compensation agreements


2,634



Closed-end fund structuring fees


933



Net income, as adjusted

$
31,312


$
34,008  35




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##### Table of Contents



Results
    of Operations
  Operating
    Income
      Revenues
    Change(in thousands)

2007


2006


Amount


PercentInvestment management fees

$
325,395


$
329,383


$
(3,988
)


1
%Distribution and underwriting fees


143,994



151,760



(7,766
)


5Other


4,088



4,029



59



1Total revenues

$
473,477


$
485,172


$
(11,695
)


2
%       Operating
    Expenses
   36




---



##### Table of Contents



Change(in thousands)

2007


2006


Amount


PercentEmployee compensation and benefits

$
91,039


$
73,382


$
17,657



24
%Distribution and underwriting expense


104,227



100,935



3,292



3Amortization of deferred sales commissions


27,249



32,924



(5,675
)


17Marketing and sales promotion


40,833



15,631



25,202



161General and administrative


37,036



31,272



5,764



18Total operating expenses

$
300,384


$
254,144


$
46,240



18
%   Co-Chief Co-Chief
  Rule 12b-1 Rule 12b-1 Rule 12b-1
       37




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##### Table of Contents



Other
    Income (Expense), Net
    (in thousands)

2007


2006


ChangeInterest income

$
16,706


$
13,149


$
3,557Interest expense


(19,555
)


(8,145
)


(11,410
)Net interest income (expense)


(2,849
)


5,004



(7,853
)Capital gain and dividend income


21,460



4,352



17,108Unrealized appreciation


11,953



1,979



9,974Miscellaneous other income


935



1,072



(137
)Investment and other income (loss)


34,348



7,403



26,945Minority interest in partnership investments


(1,598
)


(26
)


(1,572
)Total other income (expense), net

$
29,901


$
12,381


$
17,520           Income
    Taxes
    Net
    Income
     38




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##### Table of Contents



Year
    Ended December 31, 2006 Compared to Year Ended
    December 31, 2005
  Assets
    Under Management
    Year EndedDecember 31,


Change(in millions)

2006


2005


Amount


PercentMutual FundsBeginning assets under management

$
32,244


$
27,275


$
4,969



18
%Net purchases


288



3,421



(3,133
)


*Market appreciation


1,172



1,548



(376
)


*Ending assets under management


33,704



32,244



1,460



5Average assets under management


34,075



29,084



4,991



17Separate AccountsBeginning assets under management


11,561



10,700



861



8Net purchases (redemptions)


(1,107
)


212



(1,319
)


*Market appreciation


567



649



(82
)


*Ending assets under management


11,021



11,561



(540
)


5Average assets under management


11,605



10,889



716



7Total Assets Under ManagementBeginning assets under management


43,805



37,975



5,830



15Net purchases (redemptions)


(819
)


3,633



(4,452
)


*Market appreciation


1,739



2,197



(458
)


*Ending assets under management


44,725



43,805



920



2Average assets under management

$
45,680


$
39,973


$
5,707



14
%     *
    
    Not meaningful.     39




---



##### Table of Contents



Revenues
    Change(in thousands)

2006


2005


Amount


PercentInvestment management fees

$
329,383


$
284,951


$
44,432



16
%Distribution and underwriting fees


151,760



129,250



22,510



17Other


4,029



3,366



663



20Total revenues

$
485,172


$
417,567


$
67,605



16
%       Operating
    Expenses
    Change(in thousands)

2006


2005


Amount


PercentEmployee compensation and benefits

$
73,382


$
61,029


$
12,353



20
%Distribution and underwriting expense


100,935



79,446



21,489



27Amortization of deferred sales commissions


32,924



31,431



1,493



5Marketing and sales promotion


15,631



14,738



893



6General and administrative


31,272



24,829



6,443



26Total operating expenses

$
254,144


$
211,473


$
42,671



20
%     Rule 12b-1 Rule 12b-1
 40




---



##### Table of Contents



Rule 12b-1
      Other
    Income (Expense), Net
    (in thousands)

2006


2005


ChangeInterest income

$
13,149


$
5,067


$
8,082Interest expense


(8,145
)


(8,142
)


(3
)Net interest income (expense)


5,004



(3,075
)


8,079Capital gain and dividend income


4,352



3,754



598Unrealized appreciation


1,979



10,268



(8,289
)Miscellaneous other income (loss)


1,072



(25
)


1,097Investment and other income (loss)


7,403



13,997



(6,594
)Minority interest in partnership investments


(26
)


(5,161
)


5,135Total other income (expense), net

$
12,381


$
5,761


$
6,620          41




---



##### Table of Contents



Income
    Taxes
    Net
    Income
    Quarterly
    Results of Operations
    At or for the Quarter Ended(in thousands, except

2006


2007share data)

March 31


June 30


Sept. 30


Dec. 31


March 31


June 30


Sept. 30


Dec. 31Assets under management (in millions)

$
47,601


$
45,812


$
44,809


$
44,725


$
42,550


$
43,811


$
46,746


$
46,208Total revenue


120,618



124,353



118,547



121,654



115,700



114,767



118,484



124,526Total operating expenses


61,993



64,406



61,909



65,836



65,545



93,835



69,045



71,959Operating income


58,625



59,947



56,638



55,818



50,155



20,932



49,439



52,567Net income

$
9,005


$
8,101


$
8,041


$
8,861


$
7,534


$
3,805


$
7,127


$
9,279Diluted earnings per share

$
0.38


$
0.34


$
0.34


$
0.38


$
0.32


$
0.16


$
0.32


$
0.42Diluted shares outstanding(1)


100,973,155



100,845,107



100,757,758



100,817,074



100,764,966



100,289,411



99,320,380



98,786,281     (1)
    
    The diluted shares outstanding are calculated:
    (a) including the effect of outstanding restricted stock
    unit and option awards and (b) assuming Calamos Family
    Partners, Inc. and John P. Calamos, Sr. exchanged all of their
    membership units in Calamos Holdings LLC for, and converted all
    outstanding shares of our Class B common stock into, shares
    of our Class A common stock, in each case on a one-for-one
    basis.    Liquidity
    and Capital Resources
   42




---



##### Table of Contents



(in thousands)

2007


2006Statements of financial condition data:Cash and cash equivalents

$
108,441


$
328,841Receivables


39,340



36,787Investment securities


535,476



142,675Partnership investments and offshore funds


342,943



86,409Deferred tax assets, net


90,284



99,240Deferred sales commissions


34,076



49,891Long-term debt


525,000



150,000   step-up
    (in thousands)

2007


2006


2005Cash flow data:Net cash provided by operating activities

$
216,851


$
248,744


$
222,848Net cash used in investing activities


(644,528
)


(16,004
)


(71,367
)Net cash provided by (used in) financing activities


207,277



(114,368
)


(90,327
)          43




---



##### Table of Contents



Contractual
    Obligations
    Payments Due by PeriodLess than








More than(in thousands)

Total


1 Year


1-3 Years


3-5 Years


5 YearsLong-term debt obligations, including interest(1)

$
757,249


$
32,075


$
64,150


$
201,050


$
459,974Operating lease obligations(2)


79,004



4,231



9,071



8,489



57,213Other long-term obligations(3)


1,263



333



710



170



50Total

$
837,516


$
36,639


$
73,931


$
209,709


$
517,237     (1)
    
    The Companys senior unsecured notes, which aggregate to
    $525 million, have series maturing in 2011, 2014, 2017 and
    2019.(2)
    
    In accordance with generally accepted accounting principles in
    the United States, these obligations are not reflected in the
    accompanying consolidated statements of financial condition.(3)
    
    Other long-term obligations principally represent commitments
    under equity compensation agreements. These obligations are
    included in other long-term liabilities in the accompanying
    consolidated statements of financial condition.  Critical
    Accounting Policies and Estimates
   44




---



##### Table of Contents



Deferred
    Sales Commissions
  12b-1 12b-1
  24-month
    Compensation
    Plans
  Share-Based Payment
   45




---



##### Table of Contents



Income
    Taxes
  step-up
  Recently
    Issued Accounting Pronouncements
  Fair Value
    Measurements
  The Fair
    Value Option for Financial Assets and Financial
    Liabilities  Including an amendment of FASB Statement
    No. 115
  Business
    Combinations
  Noncontrolling Interests in Consolidated Financial
    Statements  an amendment of ARB No. 51
  Forward-Looking
    Information
  Form 10-K,
    and/or
 46




---



##### Table of Contents



best-in-class Risk Factors.
    Item 7A.
    Quantitative
    And Qualitative Disclosures About Market Risk             47




---



##### 



Item 8.
    Financial
    Statements and Supplementary Data   
 Report of Independent Registered Public
    Accounting Firm


F-1Managements Report on Internal Control Over
    Financial Reporting


F-2Consolidated Statements of Financial Condition at
    December 31, 2007 and 2006


F-3Consolidated Statements of Operations for the
    years ended December 31, 2007, 2006 and 2005


F-4Consolidated Statements of Changes in
    Stockholders Equity for the years ended December 31,
    2007, 2006 and 2005


F-5Consolidated Statements of Cash Flows for the
    years ended December 31, 2007, 2006 and 2005


F-6Notes to Consolidated Financial Statements


F-7SubsidiariesConsent of Independent Registered Public Accounting FirmCertificationCertificationCertificationCertification   48




---



##### Table of Contents



REPORT OF
    INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM     Internal Control  Integrated Framework
        Internal Control 
    Integrated Framework
  KPMG
    LLP
    F-1




---



##### Table of Contents



MANAGEMENTS
    REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING  Rule 13a-15(f) 15d-15(f)
        /s/  John
    P. Calamos,
    Sr.John
    P. Calamos, Sr
    Chairman, Chief Executive Officer and
    Co-Chief
    Investment Officer

/s/  Patrick
    H.
    DudasikPatrick
    H. Dudasik
    Executive Vice President, Chief Operating Officer, Chief
    Financial Officer and Treasurer    F-2




---



##### Table of Contents



CALAMOS
    ASSET MANAGEMENT, INC.
 CONSOLIDATED
    STATEMENTS OF FINANCIAL CONDITION  December 31,(in thousands, except share data)

2007


2006ASSETS:Current assetsCash and cash equivalents

$
108,441


$
328,841Receivables:Affiliates and affiliated funds


27,641



26,569Customers


11,699



10,218Investment securities


535,476



142,675Partnership investments and offshore funds


342,943



86,409Prepaid expenses


3,139



2,383Deferred tax assets, net


6,926



7,375Other assets


12,267



504Total current assets


1,048,532



604,974Non-current assetsDeferred tax assets, net


83,358



91,865Deferred sales commissions


34,076



49,891Property and equipment, net


48,420



43,615Other non-current assets


3,286



1,443Total non-current assets


169,140



186,814Total assets


1,217,672



791,788LIABILITIES AND STOCKHOLDERS EQUITY:Current liabilitiesAccounts payable:Brokers


19,950



20,969Affiliates and affiliated funds


372



264Accrued compensation and benefits


26,462



22,722Interest payable


12,636



1,353Accrued expenses and other current liabilities


9,257



5,537Total current liabilities


68,677



50,845Long-term liabilitiesLong-term debt


525,000



150,000Other long-term liabilities


8,876



8,003Total long-term liabilities


533,876



158,003Total liabilities


602,553



208,848Minority interest in partnership investments


49,177



48,850Minority interest in Calamos Holdings LLC


352,205



319,513Stockholders equityClass A Common Stock, $0.01 par value; authorized
    600,000,000 shares; 23,324,082 shares issued and
    20,871,982 shares outstanding at December 31, 2007;
    23,161,898 shares issued and 23,161,898 shares
    outstanding at December 31, 2006


233



232Class B Common Stock, $0.01 par value; authorized
    1,000 shares; issued and outstanding 100 shares


0



0Additional paid-in capital


198,924



157,724Retained earnings


70,102



52,261Accumulated other comprehensive income


5,081



4,360Treasury stock at cost; 2,452,100 shares


(60,603
)


Total stockholders equity


213,737



214,577Total liabilities, minority interest and stockholders
    equity

$
1,217,672


$
791,788    F-3




---



##### Table of Contents



CALAMOS
    ASSET MANAGEMENT, INC.
 CONSOLIDATED
    STATEMENTS OF OPERATIONS  (in thousands, except share data)

Year Ended December 31,2007


2006


2005Revenues:Investment management fees

$
325,395


$
329,383


$
284,951Distribution and underwriting fees


143,994



151,760



129,250Other


4,088



4,029



3,366Total revenues


473,477



485,172



417,567Expenses:Employee compensation and benefits


91,039



73,382



61,029Distribution and underwriting expense


104,227



100,935



79,446Amortization of deferred sales commissions


27,249



32,924



31,431Marketing and sales promotion


40,833



15,631



14,738General and administrative


37,036



31,272



24,829Total operating expenses


300,384



254,144



211,473Operating income


173,093



231,028



206,094Other income (expense):Net interest income (expense)


(2,849
)


5,004



(3,075
)Investment and other income (loss)


34,348



7,403



13,997Minority interest in partnership investments


(1,598
)


(26
)


(5,161
)Total other income (expense), net


29,901



12,381



5,761Income before minority interest in Calamos Holdings LLC and
    income taxes


202,994



243,409



211,855Minority interest in Calamos Holdings LLC


156,583



186,631



163,009Income before income taxes


46,411



56,778



48,846Income taxes


18,666



22,770



19,624Net income

$
27,745


$
34,008


$
29,222Earnings per share:Basic

$
1.24


$
1.47


$
1.27Diluted

$
1.22


$
1.45


$
1.26Weighted average shares outstanding:Basic


22,297,170



23,161,998



23,000,100Diluted


99,760,872



100,805,030



100,625,824Cash dividends per share

$
0.44


$
0.36


$
0.28    F-4




---



##### Table of Contents



CALAMOS
    ASSET MANAGEMENT, INC.
 CONSOLIDATED
    STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY  AccumulatedAdditional





OtherCommon


Paid-in


Retained


Comprehensive


Treasury(in thousands)

Stock


Capital


Earnings


Income


Stock


TotalBalance at December 31, 2004

$
230


$
154,156


$
2,364


$
1,744


$



$
158,494Net income










29,222











29,222Changes in unrealized gains on
    available-for-sale
    securities, net of minority interest and income taxes














1,188







1,188Total comprehensive income






















30,410Compensation expense recognized under stock incentive plans, net
    of minority interest






946















946Dividend equivalent accrued under stock incentive plans, net of
    minority interest










(58
)










(58
)Dividends declared










(4,830
)










(4,830
)Net effect of corrections on initial deferred tax asset






1,172















1,172Balance at December 31, 2005


230



156,274



26,698



2,932







186,134Net income










34,008











34,008Changes in unrealized gains on available-for-sale securities,
    net of minority interest and income taxes














1,405







1,405Total comprehensive income






















35,413Issuance of common stock (161,898 Class A common shares)


2



(2
)














Cumulative impact of changes in ownership of Calamos Holdings LLC






115







23







138Compensation expense recognized under stock incentive plans, net
    of minority interest






1,337















1,337Dividend equivalent accrued under stock incentive plans, net of
    minority interest










(107
)










(107
)Dividends declared










(8,338
)










(8,338
)Balance at December 31, 2006


232



157,724



52,261



4,360







214,577Net income










27,745











27,745Changes in unrealized gains on available-for-sale securities,
    net of minority interest and income taxes














1,561







1,561Total comprehensive income






















29,306Issuance of common stock (162,184 Class A common shares)


1



(1
)














Sale of Calamos Holdings LLC membership units
    (2,452,100 units)






47,493















47,493Repurchase of common stock (2,452,100 Class A common shares)


















(60,603
)


(60,603
)Cumulative impact of changes in ownership of Calamos Holdings LLC






(7,814
)


23



(840
)






(8,631
)Compensation expense recognized under stock incentive plans, net
    of minority interest






1,522















1,522Dividend equivalent accrued under stock incentive plans, net of
    minority interest










(120
)










(120
)Dividends declared










(9,807
)










(9,807
)Balance at December 31, 2007

$
233


$
198,924


$
70,102


$
5,081


$
(60,603
)

$
213,737    F-5




---



##### Table of Contents



CALAMOS
    ASSET MANAGEMENT, INC.
 CONSOLIDATED
    STATEMENTS OF CASH FLOWS  Year Ended December 31,(in thousands)

2007


2006


2005Cash and cash equivalents at beginning of period

$
328,841


$
210,469


$
149,315Cash flows from operating activities:Net income


27,745



34,008



29,222Adjustments to reconcile income to net cash provided by
    operating activities:Minority interest in Calamos Holdings LLC


156,583



186,631



163,009Minority interest in partnership investments


1,598



26



5,161Amortization of deferred sales commissions


27,249



32,924



31,431Other depreciation and amortization


9,015



7,179



4,772Unrealized appreciation on CFS securities, partnership
    investments and offshore funds


(9,733
)


(489
)


(8,983
)Deferred taxes


7,843



8,742



9,326Stock-based compensation


6,785



5,780



4,114Employee taxes paid on vesting under stock incentive plans


(1,853
)


(2,255
)


Increase in assets:Accounts receivable:Affiliates and affiliated mutual funds


(1,129
)


(1,902
)


(3,631
)Customers


(1,481
)


(412
)


(3,794
)Deferred sales commissions


(11,434
)


(24,425
)


(28,404
)Other assets


(13,116
)


(755
)


(78
)Increase (decrease) in liabilities:Accounts payable


(911
)


2,655



5,251Accrued compensation and benefits


3,740



3,591



9,146Other liabilities and accrued expenses


15,950



(2,554
)


6,306Net cash provided by operating activities


216,851



248,744



222,848Cash flows used in investing activities:Net additions to property and equipment


(13,414
)


(9,962
)


(40,132
)Net purchases of investment securities


(382,297
)


(4,350
)


(28,952
)Net changes in partnership investments and offshore funds


(248,817
)


(1,692
)


(2,283
)Net cash used in investing activities


(644,528
)


(16,004
)


(71,367
)Cash flows provided by (used in) financing activities:Net proceeds from issuance of debt


372,963







Deferred tax benefit on vesting under stock incentive plans


209



289



Repurchase of common stock


(60,603
)






Cash dividends paid to minority shareholders


(95,485
)


(106,319
)


(83,887
)Cash dividends paid to common shareholders


(9,807
)


(8,338
)


(6,440
)Net cash provided by (used in) financing activities


207,277



(114,368
)


(90,327
)Net increase (decrease) in cash


(220,400
)


118,372



61,154Cash and cash equivalents at end of period

$
108,441


$
328,841


$
210,469Supplemental disclosure of cash flow information:Cash paid for:Income taxes

$
8,401


$
14,950


$
10,960Interest

$
7,860


$
7,860


$
7,860    F-6




---



##### Table of Contents



CALAMOS
    ASSET MANAGEMENT, INC.



NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS  (1)
    Organization
    and Description of Business  closed-end
    broker-dealer
      
  (2)
    Summary
    of Significant Accounting Policies  Principles
    of Consolidation and Use of Estimates
           F-7




---



##### Table of Contents



CALAMOS
    ASSET MANAGEMENT, INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
      Financial
    Instruments
        Receivables
    from Customers
    Investment
    Securities
    Accounting for Certain
    Investments in Debt and Equity Securities
     F-8




---



##### Table of Contents



CALAMOS
    ASSET MANAGEMENT, INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Property
    and Equipment
    Internally
    Developed Software
  98-1, Accounting for the Costs of Computer Software Developed or
    Obtained for Internal Use (SOP 98-1),
  Compensation
    Plans
  Share-Based Payment
  one-for-one
  Revenue
    Recognition
    Rule 12b-1 and/or 12b-1
 F-9




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##### Table of Contents



CALAMOS
    ASSET MANAGEMENT, INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Net
    Interest Income (Expense)
    Investment
    and Other Income
    Deferred
    Sales Commissions
  12b-1 12b-1
    Income
    Taxes
    Earnings
    Per Share
   F-10




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##### Table of Contents



CALAMOS
    ASSET MANAGEMENT, INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  (3)
    Related-Party
    Transactions    (in thousands)

2007


2006


2005Investment management fees from:The Funds

$
205,171


$
209,799


$
174,374The Closed-End Funds


60,186



52,462



50,022Private investment pools


57



279



149Totals

$
265,414


$
262,540


$
224,545Distribution and underwriting fees from the Funds

$
134,017


$
138,185


$
115,790Portfolio accounting fees from:The Funds

$
3,074


$
3,154


$
2,628The Closed-End Funds


784



700



675Totals

$
3,858


$
3,854


$
3,303     (in thousands)

2007


2006


2005General and administrative

$
876


$
934


$
777Net payable to Dragon

$
(39
)

$
(32
)

$
(30
)     (in thousands)

2007


2006


2005General and administrative

$
648


$
386


$
672Other income

$
285


$
354


$
Net payable to AEA

$
(101
)

$
(11
)

$
(7
)  F-11




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##### Table of Contents



CALAMOS
    ASSET MANAGEMENT, INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    20-year
    20-year
       F-12




---



##### Table of Contents



CALAMOS
    ASSET MANAGEMENT, INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    (in thousands)

2007


2006


2005Expense allocated from the Company to Dragon

$
61


$
73


$
139Expense allocated from the Company to CFP


2,106



1,394



479Expense allocated from the Company to CPH


237



229



712Total expenses allocated from the Company to affiliates


2,404



1,696



1,330Expense allocated from CPH to the Company


1,859



1,210



561Net expense allocated from the Company to affiliates

$
545


$
486


$
769Net receivable for management services from Dragon

$
4


$
4


$
14Net receivable (payable) for management services from CFP

$
27


$
(7
)

$
65Net receivable for management services from CPH

$
19


$
8


$
28     (4)
    Investment
    Securities    2007Available-


CFS


Total(in thousands)

for-Sale


Securities


SecuritiesMutual FundsEquity

$
322,344


$
3,095


$
325,439Balanced


90,049



722



90,771Fixed income


114,439







114,439High yield


3,663







3,663Other


245



227



472Total mutual funds


530,740



4,044



534,784Other investment securities


430



262



692$
531,170


$
4,306


$
535,476   2006Available-


CFS


Total(in thousands)

for-Sale


Securities


SecuritiesMutual FundsEquity

$
101,166


$
2,816


$
103,982Balanced


33,724



718



34,442High yield


3,457







3,457Other


28



216



244Total mutual funds


138,375



3,750



142,125Other investment securities


387



163



550$
138,762


$
3,913


$
142,675  F-13




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##### Table of Contents



CALAMOS
    ASSET MANAGEMENT, INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
      (in thousands)

2007


2006


2005Available-for-sale securities:Proceeds from sale

$
7


$
18


$
Realized gains (losses)


3



10



Unrealized gains


9,683



10,112



8,638CFS securities:Unrealized gains (losses)


385



(63
)


231     (in thousands)

2007


2006Total cumulative unrealized gains on available-for-sale
    securities with net
    gains:Mutual FundsEquity

$
39,461


$
22,529Balanced


5,860



6,024Fixed income


1,022



High yield






91Other


5



Total mutual funds


46,348



28,644Other investment securities


297



205Total gains


46,645



28,849Total cumulative unrealized losses on available-for-sale
    securities with net
    losses:Mutual FundsEquity


(7,073
)


Balanced


(17
)


Fixed income


(334
)


High yield


(272
)


(63
)Other






(1
)Total mutual funds


(7,696
)


(64
)Other investment securities


(475
)


(12
)Total losses


(8,171
)


(76
)Total cumulative net unrealized gains (losses) on
    available-for-sale securities

$
38,474


$
28,773    F-14




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##### Table of Contents



CALAMOS
    ASSET MANAGEMENT, INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    (5)
    Partnership
    Investments and Offshore Funds    (in thousands)

2007


2006Calamos Equity Opportunities Fund LP:Securities owned

$
111,142


$
110,956Securities sold but not yet purchased


(24,838
)


(24,104
)Accrued expenses and other current liabilities


(1,478
)


(4,190
)Other current assets


20



71Calamos Equity Opportunities Fund LP securities, net


84,846



82,733Calamos Market Neutral Opportunities Fund LP:Securities owned


81,361



Securities sold but not yet purchased


(22,372
)


Accrued expenses and other current liabilities


(5,178
)


Other current assets


1,028



Calamos Market Neutral Opportunities Fund LP securities, net


54,839



Calamos Global Funds PLC:Securities owned


200,196



Other current assets


5,107



Accrued expenses and other liabilities


(2,045
)


Calamos Global Funds PLC


203,258



Investment in Calamos Multi-Strategy, L.P.






3,676Partnership investments and offshore funds

$
342,943


$
86,409          F-15




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##### Table of Contents



CALAMOS
    ASSET MANAGEMENT, INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  (6)
    Property
    and Equipment    (in thousands)

2007


2006Furniture, fixtures, and equipmentCost

$
70,261


$
56,848Accumulated depreciation


21,841



13,233Furniture, fixtures, and equipment, net

$
48,420


$
43,615   (7)
    Debt        (in thousands)

2007


2006Senior unsecured notes5.24% notes due April 29, 2011

$
150,000


$
150,0006.33% notes due July 15, 2014


197,000



6.52% notes due July 15, 2017


85,000



6.67% notes due July 15, 2019


93,000



Total senior unsecured notes


525,000



150,000Less current portion






Total long-term debt

$
525,000


$
150,000  F-16




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##### Table of Contents



CALAMOS
    ASSET MANAGEMENT, INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  (8)
    Minority
    Interest in Calamos Holdings LLC    (in thousands)Minority interest at December 31, 2005

$
229,430Income allocated to minority interests


186,631Changes in unrealized gains on available-for-sale securities


7,782Cumulative impact of changes in ownership of Calamos Holdings
    LLC units


(2,103
)Compensation expense recognized under stock incentive plans


4,444Dividend equivalent accrued under stock incentive plans


(352
)Tax distributions


(78,599
)Equity distributions


(27,720
)Minority interest at December 31, 2006


319,513Income allocated to minority interests


156,583Changes in unrealized gains on available-for-sale securities


7,242Sale of Calamos Holdings LLC membership units


(47,493
)Cumulative impact of changes in ownership of Calamos Holdings
    LLC units


6,985Compensation expense recognized under stock incentive plans


5,264Dividend equivalent accrued under stock incentive plans


(404
)Tax distributions


(61,605
)Equity distributions


(33,880
)Minority interest at December 31, 2007

$
352,205   (9)
    Common
    Stock    (10)
    Profit
    Sharing Plan   F-17




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##### Table of Contents



CALAMOS
    ASSET MANAGEMENT, INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  (11)
    Stock
    Based Compensation      WeightedNumber


Averageof


Fair Value ofShares


RSUs GrantedOutstanding at December 31, 2004


1,345,936


$
18.00Granted


103,656



28.78Forfeited


(34,730
)


18.00Exercised upon vesting






Outstanding at December 31, 2005


1,414,862



18.79Granted


134,117



35.08Forfeited


(26,940
)


24.33Exercised upon vesting


(233,599
)


18.00Outstanding at December 31, 2006


1,288,440



20.51Granted


256,469



27.58Forfeited


(267,390
)


20.44Exercised upon vesting


(231,249
)


18.00Outstanding at December 31, 2007


1,046,270



22.82Converted during the year ended December 31:2005






2006


161,898



18.002007


162,184



18.00      F-18




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##### Table of Contents



CALAMOS
    ASSET MANAGEMENT, INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    10-year
  2007

2006

2005Dividend yield

1.67%

1.02%-1.42%

0.96%-0.97%Expected volatility

35%

33%-35%

33%Risk-free interest rate

4.7%

4.6%-5.0%

3.9%-4.2%Expected life

7.5 years

7.5 years

7.5 years     Options Outstanding


Options ExercisableAverage


Weighted





WeightedRange of




Remaining


Average


Number


AverageExercise

Number of


Contractual


Option


of


OptionPrices

Shares


Life


Price


Shares


Price$18.00


530,864



6.8 years


$
18.00







$25.74-$29.11


956,390



8.5 years



27.90







$35.43


326,331



8.1 years



35.43







1,813,585



8.2 years



26.35







  F-19




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##### Table of Contents



CALAMOS
    ASSET MANAGEMENT, INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    WeightedNumber


Averageof


ExerciseShares


PriceOutstanding at December 31, 2004


727,727


$
18.00Granted


313,467



28.78Forfeited


(31,227
)


18.00Exercised






Outstanding at December 31, 2005


1,009,967



21.35Granted


402,349



35.08Forfeited


(77,218
)


24.63Exercised






Outstanding at December 31, 2006


1,335,098



25.30Granted


769,407



27.58Forfeited


(290,920
)


24.73Exercised






Outstanding at December 31, 2007


1,813,585



26.35Exercisable at December 31:2005






2006






2007






      F-20




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##### Table of Contents



CALAMOS
    ASSET MANAGEMENT, INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  (12)
    Total
    Other Income (Expense), Net    (in thousands)

2007


2006


2005Interest income

$
16,706


$
13,149


$
5,067Interest expense


(19,555
)


(8,145
)


(8,142
)Net interest income (expense)


(2,849
)


5,004



(3,075
)Capital gain and dividend income


21,460



4,352



3,754Unrealized appreciation


11,953



1,979



10,268Miscellaneous other income


935



1,072



(25
)Investment and other income (loss)


34,348



7,403



13,997Minority interest in partnership investments


(1,598
)


(26
)


(5,161
)Total other income (expense), net

$
29,901


$
12,381


$
5,761   (13)
    Income
    Taxes  Accounting for Uncertainty in Income Taxes  an
    interpretation of FASB Statement No. 109.
        (in thousands)

2007


2006


2005Current:Federal

$
8,404


$
10,860


$
8,309State


2,001



2,590



1,989Total current income taxes


10,405



13,450



10,298Deferred:Federal


6,672



7,531



7,537State


1,589



1,789



1,789Total deferred income taxes


8,261



9,320



9,326Total income taxes

$
18,666


$
22,770


$
19,624  F-21




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##### Table of Contents



CALAMOS
    ASSET MANAGEMENT, INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    (in thousands)

2007


2006Deferred tax assets:Intangible assets

$
97,290


$
105,700Other


984



1,537Total deferred tax assets


98,274



107,237Deferred tax liabilities:Unrealized net holding gains on investments of
    available-for-sale securities


3,191



2,294Deferred sales commission


2,808



4,098Other


1,991



1,605Total deferred tax liabilities


7,990



7,997Net deferred tax assets

$
90,284


$
99,240     mark-to-market stepped-up
      2007


2006


2005Statutory U.S. federal income tax rate


35.0
%


35.0
%


35.0
%State income taxes, net of federal tax benefits


5.0
%


5.0
%


5.0
%Other non-deductible items


0.2
%


0.1
%


0.2
%Effective income tax rate


40.2
%


40.1
%


40.2
%  F-22




---



##### Table of Contents



CALAMOS
    ASSET MANAGEMENT, INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  (14)
    Earnings
    Per Share    (in thousands, except per share amounts)

2007


2006


2005Earnings per share  basic:Earnings available to common shareholders

$
27,745


$
34,008


$
29,222Weighted average shares outstanding


22,297



23,162



23,000Earnings per share  basic

$
1.24


$
1.47


$
1.27Earnings per share  diluted:Income before minority interest in Calamos Holdings LLC and
    income taxes

$
202,994


$
243,409


$
211,855Less: Impact of income taxes


81,644



97,607



85,102Earnings available to common shareholders

$
121,350


$
145,802


$
126,753Weighted average shares outstanding


22,297



23,162



23,000Conversion of membership units for common stock


77,000



77,000



77,000Dilutive impact of RSUs


386



523



577Dilutive impact of stock options


78



120



49Weighted average shares outstanding


99,761



100,805



100,626Earnings per share  diluted

$
1.22


$
1.45


$
1.26     Share-Based Payment
  (15)
    Commitments
    and Contingencies   F-23




---



##### Table of Contents



CALAMOS
    ASSET MANAGEMENT, INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
        Minimum(in thousands)

PaymentsYear ended December 31:2008

$
4,2312009


4,4852010


4,5862011


4,1842012


4,304Thereafter


57,214Total minimum lease payments

$
79,004   (16)
    Regulatory
    and Net Capital Requirements  (Rule 15c3-1),
  (Dollars in thousands)

2007


2006Net capital

$
9,175


$
5,330Excess of required net capital

$
7,352


$
3,647Net capital ratio


2.98



4.74   Rule 15c3-3(k)(2)(i) Rule 15c3-3,
  (17)
    Concentration
    Risk    2007


2006


2005Calamos Growth Fund


43
%


48
%


47
%Calamos Growth and Income Fund


17
%


16
%


16
%  F-24




---



##### Table of Contents



CALAMOS
    ASSET MANAGEMENT, INC.
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  (18)
    Common
    Stock Repurchase      (19)
    Recently
    Issued Accounting Pronouncements  Fair Value
    Measurements
  The Fair
    Value Option for Financial Assets and Financial
    Liabilities  Including an amendment of FASB Statement
    No. 115
  Business
    Combinations
  Noncontrolling Interests in Consolidated Financial
    Statements  an amendment of ARB No. 51
 F-25




---



##### Table of Contents



Item 9.
    Changes
    in and Disagreements with Accountants on Accounting and
    Financial Disclosure    Item 9A.
    Controls
    and Procedures  Form 10-K, Rule 13a-15(e) 15d-15(e)
    Form 10-K.
  Item 9B.  Other
    Information
    PART III
  Item 10.
    Directors
    and Executive Officers of the Registrant  Management



DirectorsJohn P. Calamos, Sr.Chairman, Chief Executive
    Officer and Co-Chief
    Investment Officer

James F. BakaExecutive Vice President  Wealth
    Management

John P. Calamos, Sr.Chairman, Chief Executive Officer 
    and Co-Chief
    Investment OfficerNick P. CalamosSenior Executive Vice President and
    Co-Chief Investment Officer

Philip (Phipps) E. MoriartyExecutive Vice President  Head of
    Distribution and Business Development

Nick P. CalamosSenior Executive Vice President
    and Co-Chief Investment OfficerPatrick H. DudasikExecutive Vice President,
    Chief Operating Officer, Chief
    Financial Officer and Treasurer

Nimish S. BhattSenior Vice President
    and Director of Operations

G. Bradford BulkleyFounder
    Bulkley Capital, L.P.Scott Craven JonesExecutive Vice President and
    Chief Administrative Officer

Robert M. KunimuraSenior Vice President
    and Chief Technology Officer

Mitchell S. FeigerPresident and Chief Executive Officer
    MB Financial, Inc.Richard W. GilbertPresident
    Gilbert Communications, Inc.Arthur L. KnightPrivate Investor and Business Consultant
    Former President and Chief Executive
    Officer
    Morgan Products, Ltd.  II-1




---



##### Table of Contents



Item 11.
    Executive
    Compensation    Item 12.
    Security
    Ownership of Certain Beneficial Owners and Management and
    Related Stockholder Matters    Item 13.
    Certain
    Relationships and Related Transactions    Item 14.
    Principal
    Accounting Fees and Services   II-2




---



##### Table of Contents



PART IV
  Item 15.
    Exhibits and
    Financial Statement Schedules          ExhibitNumber

Description of Exhibit3(i)


Amended and Restated Certificate of Incorporation of the
    Registrant (incorporated by reference to Exhibit 3.1 to the
    Registrants Current Report on
    Form 8-K
    filed with the Securities and Exchange Commission on
    November 2, 2004).3(ii)


Amended and Restated By-Laws of the Registrant (incorporated by
    reference to Exhibit 3.2 to the Registrants Current
    Report on
    Form 8-K
    filed with the Securities and Exchange Commission on
    March 8, 2007).4.1


Stockholders Agreement among John P. Calamos, Sr., Nick P.
    Calamos and John P. Calamos, Jr., certain trusts controlled by
    them, Calamos Family Partners, Inc. and the Registrant
    (incorporated by reference to Exhibit 4.1 to the
    Registrants Quarterly Report on
    Form 10-Q
    filed with the Securities and Exchange Commission on
    December 3, 2004).4.2


Registration Rights Agreement between Calamos Family Partners,
    Inc., John P. Calamos, Sr. and the Registrant (incorporated by
    reference to Exhibit 4.2 to the Registrants Quarterly
    Report on
    Form 10-Q
    filed with the Securities and Exchange Commission on
    December 3, 2004).4.3


Note Purchase Agreement, dated as of July 13, 2007, by and
    among Calamos Holdings LLC and various institutional investors
    (incorporated by reference to Exhibit 4.1 to the
    Registrants Current Report on
    Form 8-K
    filed with the Securities and Exchange Commission on
    July 18, 2007).10.1


Employment Agreement between the Registrant and John P. Calamos,
    Sr. (incorporated by reference to Exhibit 10.1 to the
    Registrants Quarterly Report on
    Form 10-Q
    filed with the Securities and Exchange Commission on
    December 3, 2004).10.2


Employment Agreement between the Registrant and Nick P. Calamos
    (incorporated by reference to Exhibit 10.2 to the
    Registrants Quarterly Report on
    Form 10-Q
    filed with the Securities and Exchange Commission on
    December 3, 2004).10.3


Employment Agreement between the Registrant and James S. Hamman,
    Jr. (incorporated by reference to Exhibit 10.3 to the
    Registrants Quarterly Report on
    Form 10-Q
    filed with the Securities an Exchange Commission on
    December 3, 2004).10.4


Employment Agreement between the Registrant and Patrick H.
    Dudasik (incorporated by reference to Exhibit 10.4 to the
    Registrants Quarterly Report on
    Form 10-Q
    filed with the Securities and Exchange Commission on
    December 3, 2004).10.5


Employment Agreement between the Registrant and Philip E.
    Moriarty, II (incorporated by reference to
    Exhibit 10.1 to the Registrants Quarterly Report on
    Form 10-Q
    filed with the Securities and Exchange Commission on
    May 10, 2007).10.6


Amendment Number 1 to Employment Agreement between the
    Registrant and Nick P. Calamos (incorporated by reference to
    Exhibit 10.2 to the Registrants Quarterly Report on
    Form 10-Q
    filed with the Securities and Exchange Commission on
    August 9, 2007).10.7


Amendment Number 1 to Employment Agreement between the
    Registrant and Patrick H. Dudasik (incorporated by reference to
    Exhibit 10.3 to the Registrants Quarterly Report on
    Form 10-Q
    filed with the Securities and Exchange Commission on
    August 9, 2007).10.8


Amendment Number 1 to Employment Agreement between the
    Registrant and James S. Hamman, Jr. (incorporated by reference
    to Exhibit 10.4 to the Registrants Quarterly Report
    on
    Form 10-Q
    filed with the Securities and Exchange Commission on
    August 9, 2007).10.9


Transition Agreement, dated as of August 7, 2007, by and
    among Calamos Asset Management, Inc., Calamos Advisors LLC,
    Calamos Holdings LLC and Patrick H. Dudasik (incorporated by
    reference to Exhibit 10.1 to the Registrants
    Quarterly Report on
    Form 10-Q
    filed with the Securities and Exchange Commission on
    November 7, 2007). II-3




---



##### Table of Contents



ExhibitNumber

Description of Exhibit10.10


Transition Agreement, dated as of September 5, 2007, by and
    among Calamos Asset Management, Inc., Calamos Advisors LLC,
    Calamos Holdings LLC and James S. Hamman, Jr. (incorporated by
    reference to Exhibit 10.2 to the Registrants
    Quarterly Report on
    Form 10-Q
    filed with the Securities and Exchange Commission on
    November 7, 2007).10.11


Calamos Asset Management, Inc. Incentive Compensation Plan
    (incorporated by reference to Exhibit 10.5 to the
    Registrants Quarterly Report on
    Form 10-Q
    filed with the Securities and Exchange Commission on
    December 3, 2004).10.12


Form of EAU-Based RSU Award Statement (incorporated by reference
    to Exhibit 10.6 to the Registrants Quarterly Report
    on
    Form 10-Q
    filed with the Securities and Exchange Commission on
    December 3, 2004).10.13


Form of IPO Equity Award Statement (incorporated by reference to
    Exhibit 10.7 to the Registrants Quarterly Report on
    Form 10-Q
    filed with the Securities and Exchange Commission on
    December 3, 2004).10.14


Form of Services-Based RSU Award Statement (incorporated by
    reference to Exhibit 10.8 to the Registrants
    Quarterly Report on
    Form 10-Q
    filed with the Securities and Exchange Commission on
    December 3, 2004).10.15


Contribution Agreement between the Registrant and Calamos
    Holdings LLC (incorporated by reference to Exhibit 10.9 to
    the Registrants Quarterly Report on
    Form 10-Q
    filed with the Securities and Exchange Commission on
    December 3, 2004).10.16


Tax Indemnity Agreement among the Registrant, Calamos Family
    Partners, Inc. and Calamos Holdings LLC (incorporated by
    reference to Exhibit 10.10 to the Registrants
    Quarterly Report on
    Form 10-Q
    filed with the Securities and Exchange Commission on
    December 3, 2004).10.17


Second Amended and Restated Limited Liability Company Agreement
    of Calamos Holdings LLC effective as of November 2, 2004,
    by and among Calamos Family Partners, Inc., John P. Calamos, Sr.
    and the Registrant (incorporated by reference to
    Exhibit 10.11 to the Registrants Quarterly Report on
    Form 10-Q
    filed with the Securities and Exchange Commission on
    December 3, 2004).10.18


Amendment No. 1 to the Second Amended and Restated Limited
    Liability Company Agreement of Calamos Holdings LLC
    (incorporated by reference to Exhibit 10.12 to the
    Registrants Annual Report on
    Form 10-K
    filed with the Securities and Exchange Commission on
    March 13, 2006).10.19


Amendment No. 2 to the Second Amended and Restated Limited
    Liability Company Agreement of Calamos Holdings LLC
    (incorporated by reference to Exhibit 10 to the
    Registrants Quarterly Report on
    Form 10-Q
    filed with the Securities and Exchange Commission on
    August 9, 2006).10.20


Management Services and Resources Agreement by and among the
    Registrant, Calamos Family Partners, Inc. and Calamos Property
    Holdings LLC (incorporated by reference to Exhibit 10.1 to
    the Registrants Quarterly Report on
    Form 10-Q
    filed with the Securities and Exchange Commission on
    August 9, 2007).10.21


Lease Agreement between 2020 Calamos Court LLC and Calamos
    Holdings LLC (formerly with Calamos Holdings, Inc. (incorporated
    by reference to Exhibit 10 to the Registrants
    Quarterly Report on
    Form 10-Q
    filed with the Securities and Exchange Commission on
    November 10, 2005).10.22


Lease Agreement between CityGate Centre I LLC and Calamos
    Holdings LLC (incorporated by reference to Exhibit 99.1 to
    the Registrants Current Report on
    Form 8-K
    filed with the Securities and Exchange Commission on
    November 20, 2007).21.1


Subsidiaries of the Company.23.1


Consent of Independent Registered Public Accounting Firm, KPMG
    LLP.31.1


Certification of Principal Executive Officer pursuant to
    Rule 13a-14(a).31.2


Certification of Principal Financial Officer pursuant to
    Rule 13a-14(a).32.1


Certification of Principal Executive Officer pursuant to
    18 U.S.C. Section 1350.32.2


Certification of Principal Financial Officer pursuant to
    18 U.S.C. Section 1350.    II-4




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##### Table of Contents



SIGNATURES
      By:
    /s/  Patrick
    H. Dudasik   Title:
    Executive Vice President,      Signature

Title

Date/s/  John
    P. Calamos, Sr.John
    P. Calamos, Sr.

Chairman of the Board, Chief Executive Officer and Co-Chief
    Investment Officer (Principal Executive Officer)

March 3, 2008/s/  Patrick
    H. DudasikPatrick
    H. Dudasik

Executive Vice President, Chief Operating Officer, Chief
    Financial Officer and Treasurer (Principal Financial Officer)

March 3, 2008/s/  Nick
    P. CalamosNick
    P. Calamos

Senior Executive Vice President, Co-Chief Investment Officer and
    Director

March 3, 2008/s/  G.
    Bradford BulkleyG.
    Bradford Bulkley

Director

March 3, 2008/s/  Mitchell
    S. FeigerMitchell
    S. Feiger

Director

March 3, 2008/s/  Richard
    W. GilbertRichard
    W. Gilbert

Director

March 3, 2008/s/  Arthur
    L. KnightArthur
    L. Knight

Director

March 3, 2008  II-5