staggered short-term debt. First, debt maturity that is too short-term is inefficient, even with incentive provision. The … optimal maturity is an interior solution that avoids excessive rollover risk while providing sufficient incentives for the …

display higher default risk. We identify a factor that determines this build-up of risk: specifically, debt maturity …

creditors losing faith in the long-run prospects of the bank, hence forcing it to shorten its debt maturity. Finally, we build a … model that endogenizes the debt maturity structure and predicts that worse market expectations lead to a maturity shortening …

creditors losing faith in the long-run prospects of the bank, hence forcing it to shorten its debt maturity. Finally, we build a … model that endogenizes the debt maturity structure and predicts that worse market expectations lead to a maturity shortening …