Showing 1 - 10 of 8,513
Inspired by the Silicon Valley Bank run and building on Diamond- Dybvig (1993), we develop a model in which asset price fluctuations can trigger bank runs. Liquidation amounts to selling assets at their market price. Depositors can buy and hold the assets after paying an idiosyncratic cost. We...
Persistent link: https://www.econbiz.de/10015421906
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 …
Persistent link: https://www.econbiz.de/10012456753
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 …
Persistent link: https://www.econbiz.de/10012457770
maturity in the event of crises, and show that both necessarily improve ex ante welfare if they do not decrease expected …
Persistent link: https://www.econbiz.de/10012457880
maturity management, as will typically be required to address rollover crisis risk, will be delayed until the end of the …
Persistent link: https://www.econbiz.de/10012458946
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 …
Persistent link: https://www.econbiz.de/10012458976
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 …
Persistent link: https://www.econbiz.de/10012459739
We argue that time-series variation in the maturity of aggregate corporate debt issues arises because firms behave as … macro liquidity providers, absorbing the large supply shocks associated with changes in the maturity structure of government … periods when the ratio of government debt to total debt is higher; and ii) by firms with stronger balance sheets. Our theory …
Persistent link: https://www.econbiz.de/10012464558
We examine empirically how the maturity structure of government debt affects bond yields and excess returns. Our …
Persistent link: https://www.econbiz.de/10012464841
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 …
Persistent link: https://www.econbiz.de/10012453037