The maturity rat race

The maturity rat race

by Markus Konrad Brunnermeier

Book 16607 of NBER working paper series -- working paper

Join Readfeed freeFind clubs reading this
Rate this book:

Browse books you can read free on Readfeed

No club is reading this yet — be the first to start one

Start a club free
About
"We develop a model of endogenous maturity structure for financial institutions that borrow from multiple creditors. We show that a maturity rat race can occur: an individual creditor can have an incentive to shorten the maturity of his own loan to the institution, allowing him to adjust his financing terms or pull out before other creditors can. This, in turn, causes all other lenders to shorten their maturity as well, leading to excessively short-term financing. This rat race occurs when interim information is mostly about the probability of default rather than the recovery in default, and is most pronounced during volatile periods and crises. Overall, firms are exposed to unnecessary rollover risk"--National Bureau of Economic Research web site.

Discuss The maturity rat race with other readers

Join or start a book club for The maturity rat race on Readfeed. Live chat, shared reading progress, and AI discussion questions — free to get started.

Sign up freeBrowse book clubs

Frequently asked questions

How do I join a book club for The maturity rat race?

Sign up free on Readfeed, then browse public clubs or start your own club with The maturity rat race as the current read. Invite friends with a share link and discuss together with live chat and AI discussion questions.

Can I discuss The maturity rat race with other readers online?

Yes. Readfeed book clubs let you chat live, share progress, and join discussions about The maturity rat race with readers worldwide — whether your club is virtual, in-person, or hybrid.

Is Readfeed free?

Yes. Creating an account and joining book clubs is free. Sign up to find readers who love the same books and start discussing today.