The Maturity Rat Race

Material TypeArticleLanguageEnglish
TitleThe Maturity Rat Race Author(S)MARKUS K BRUNNERMEIER (Author)
Abstract  Why do some firms, especially financial institutions, finance themselves so short-term? We show that extreme reliance on short-term financing may be the outcome of a maturity rat race: a borrower may have an incentive to shorten the maturity of an individual creditor’s debt contract because this dilutes other creditors. ...Paginationp483-523
SubjectEconomicsDescriptorsEconomics Finance
Journal TitleThe Journal of Finance  
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