We study rollover risk and collateral value in a dynamic asset pricing model with endogenous debt financing by … news. We demonstrate the optimality of the maximum riskless short-term debt financing for optimistic borrowers even in the …

We develop a dynamic model of debt runs on a firm, which invests in an illiquid asset by rolling over staggered short …-term debt contracts. We derive a unique threshold equilibrium, in which creditors coordinate their asynchronous rollover … the roles played by volatility, illiquidity and debt maturity in driving debt runs, as well as on firms' capital adequacy …

establishment-level data, we show that firms that tightened their debt capacity in the run-up to the Great Recession ("highleverage … debt capacity ("low-leverage firms"). In fact, all of the job losses associated with falling house prices during the Great …

constrained firms. In addition to the classical tradeoff between the expected tax advantages of debt and bankruptcy costs, we … liquidity management policy for the firm. An important new cost of debt financing in this context is an endogenous debt … servicing cost: debt payments drain the firm's valuable liquidity reserves and thus impose higher expected external financing …

membership (Czech Republic, Hungary, Poland, and Slovakia). A Multi-Annual Fiscal Adjustment Strategy (MAFAS) and a Pre …

and borrowers ample reason to care whether nonperforming debts are restructured. One implication of the way in which debt … argument is moral hazard, but (unlike in much of the recent literature of emerging market debt problems) what is central here …