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SUMMARY:Dynamic Debt Maturity
DTSTART:20150213T103000
DTEND:20150213T120000
DTSTAMP:20260407T021239Z
UID:2f7d9fca39378c7184fccc9d73b8dfb37b190e0a7990fa5eb0b8880f
CATEGORIES:Conferences - Seminars
DESCRIPTION:Konstantin MILBRADT (Northwestern University)\nWe study a dyna
 mic setting in which a firm chooses its debt maturity structure endogenous
 ly over time without commitment. In our model\, the firm keeps its promise
 d outstanding bond face-values constant\, but can control the firm’s mat
 urity structure via the fraction of newly issued short-term bonds when ref
 inancing its matured long-term and short-term bonds. As a baseline\, we sh
 ow that when the firm’s cash-flows are constant then it is impossible to
  have the shortening equilibrium in which the firm keeps issuing short-ter
 m bonds and default consequently. Instead\, when the cash-flows deteriorat
 e over time so that the debt recovery value is affected by the endogenous 
 default timing\, then a shortening equilibrium with accelerated default ca
 n emerge. Self-enforcing shortening and lengthening equilibria exist\, and
  the shortening equilibrium may be Pareto-dominated by the lengthening one
 .
LOCATION:UNIL\, Extranef\, room 126 https://planete.unil.ch/plan/?local=EX
 T-126
STATUS:CONFIRMED
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