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 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 …

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 …

-varying debt maturity choices, as well as its implications for the term structure of credit spreads. Compared to short-term debt … liquidity costs changing over the business cycle, our calibrated model implies that debt maturity is pro-cyclical, firms with … high systematic risk favor longer debt maturity, and that these firms will have more stable maturity structures over the …

Debt maturity influences debt overhang: the reduced incentive for highly- levered borrowers to make real investments … because some value accrues to debt. Reducing maturity can increase or decrease overhang even when shorter-term debt's value …

We propose a clientele-based model of the yield curve and optimal maturity structure of government debt. Clienteles are … generations of agents at different lifecycle stages in an overlapping-generations economy. An optimal maturity structure exists in …--effects that we also confirm empirically in a panel of OECD countries. Moreover, under the optimal maturity structure, catering to …

maturity management, as will typically be required to address rollover crisis risk, will be delayed until the end of the …

We study how the maturity structure of nominal government debt affects optimal monetary and fiscal policy decisions and … inflation in optimal fiscal financing increases with the average maturity of government debt; (3) as average maturity rises, it … policy with passively adjusting lump-sum taxes by extending the average maturity of bond …