debt model augmented with long maturity bonds. Two necessary conditions for the multiplicity are: (i) the government is … creditors will price bonds; long maturity bonds are therefore a crucial component of the multiplicity. We introduce a third …

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 …

voluntarily reduce debt. On the other hand, countervailing effects of asset growth and debt maturity cause leverage to mean … ultimately mean-reverts. The target level of leverage, and the speed of adjustment depends critically on debt maturity …; nonetheless, in equilibrium shareholders are indifferent toward the debt maturity structure …

. Standard models impose precise internal consistency conditions on the joint behavior of long and short maturity claims and … these are strongly rejected in the data. In particular, long maturity prices are significantly more variable than justified …

A firm chooses its debt maturity structure and default timing dynamically, both without commitment. Via the fraction of … newly issued short-term bonds, equity holders control the maturity structure, which affects their endogenous default …

This paper develops a model of optimal government debt maturity in which the government cannot issue state … expensive to finance ex-ante since they exacerbate the problem of lack of commitment ex-post. In contrast, a flat maturity … policy distortions. We show that the optimal time-consistent maturity structure is nearly flat because reducing average …

This paper studies the maturity and stream of payments of sovereign debt. Using Bloomberg bond data for eleven emerging … economies, we document that countries react to crises by issuing debt with shortened maturity but back-load payment schedules …. To account for this pattern, we develop a sovereign default model with an endogenous choice of debt maturity and payment …

maturity in the event of crises, and show that both necessarily improve ex ante welfare if they do not decrease expected …