We develop a model of endogenous maturity structure for financial institutions that borrow from multiple creditors. We … show that a maturity rat race can occur: an individual creditor can have an incentive to shorten the maturity of his own …, causes all other lenders to shorten their maturity as well, leading to excessively short-term financing. This rat race occurs …

We study the interactions between sovereign debt default and maturity choice in a setting with limited commitment for …-term bond market. We show that any attempt to manipulate the existing maturity profile of outstanding long-term bonds generates …

liquidity, which depends on both the firm fundamental and the time-to-maturity of the bond. Corporate default decisions interact … premium and default premium for credit spreads, we also study the optimal maturity implied by the model based on the tradeoff …

portfolios sorted by maturity and credit risk as measured by the issuer's "distance-to-default." The portfolios are constructed …

market liquidity and shorter debt maturity can exacerbate this externality and cause costly firm bankruptcy at higher … optimal debt maturity structures …