Do firms lengthen the maturity of their borrowing following a flattening of the Treasury yield curve that results from … policy over the two regimes. We find that the answer is robustly yes for the pre-ZLB period: Firms extended the maturity of … their bond issuance by nearly three years in response to a policy-induced reduction of 1 percentage point in the maturity …

We show that a policy rate cut lengthens corporate debt maturity. A 1 standard deviation (10 basis points, b …