lengthen the maturity of foreign debt. Short-term debt is typically considered to be volatile and thus a potential trigger of …

We build a dynamic capital structure model to study the link between systematic risk exposure and debt maturity, as … well as their joint impact on the term structure of credit spreads. Our model allows for time variation and lumpiness in … the maturity structure. Relative to short-term debt, long-term debt is less prone to rollover risks, but its illiquidity …