liquidity, which depends on both the firm fundamental and the time-to-maturity of the bond. Corporate default decisions interact … premium and default premium for credit spreads, we also study the optimal maturity implied by the model based on the tradeoff …

are good to keep the ef- fective maturity of their loans long and hedge against having to refinance in tight credit …

only by capitalization but also by the maturity mismatch between assets and liabilities, are key to relating these findings …

We document several facts about corporate debt maturity: (1) debt maturity is pro-cyclical; (2) higher-beta firms tend … to have longer debt maturity; (3) shorter maturity amplifies the sensitivity of credit spreads to aggregate shocks. We … build a dynamic capital structure model that explains these facts. In the model, leverage and maturity choices are highly …

to leverage, asset values, and asset liquidity, but less sensitive to the degree of maturity mismatch, the strength of …

formed and how they impact leverage and debt maturity choices. In the model, lending relationships evolve through repeated … longer term debt, and raise funds from non-relationship lenders when relationship quality is sufficiently high. The maturity …