Results 171 to 180 of about 320,240 (206)
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Debt Dynamics with Fixed Issuance Costs
SSRN Electronic Journal, 2022We investigate equilibrium debt dynamics for a firm that cannot commit to a future debt policy and is subject to a fixed restructuring cost. We formally characterize equilibria when the firm is not required to repurchase outstanding debt prior to issuing additional debt. For realistic values of issuance costs and debt maturity, the no-commitment policy
Benzoni, Luca +3 more
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SSRN Electronic Journal, 2015
We propose a model that explains the build-up of short term debt when the creditors are strategic and have different beliefs about the prospects of the borrowers' fundamentals. We define a dynamic game among creditors, whose outcome is the short term debt process as a function of the borrower's fundamentals.
Johannes Wissel, Andreea Minca
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We propose a model that explains the build-up of short term debt when the creditors are strategic and have different beliefs about the prospects of the borrowers' fundamentals. We define a dynamic game among creditors, whose outcome is the short term debt process as a function of the borrower's fundamentals.
Johannes Wissel, Andreea Minca
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Credit spreads with dynamic debt
Journal of Banking & Finance, 2013This paper extends the baseline Merton (1974) structural default model, which is intended for static debt spreads, to a setting with dynamic debt, where leverage can be ratcheted up as well as written down through pre-specified exogenous policies. We provide a different and novel solution approach to dynamic debt than in the extant literature. For many
Sanjiv Ranjan Das, Seoyoung Kim
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Capital structure dynamics and transitory debt [PDF]
Journal of Financial Economics, 2010 Abstract Firms deliberately but temporarily deviate from permanent leverage targets by issuing transitory debt to fund investment. Leverage targets conservatively embed the option to issue transitory debt, with the evolution of leverage reflecting the sequence of investment outlays.
Toni M. Whited +3 more
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Acta Oeconomica, 2003
The present paper deals with the accumulation of public debt based on different kinds of nonlinear models. The same problem is analysed here in three different models. In the first model difference between growth rate and interest rate depends lineary on the debt/GDP ratio and the budget deficit.
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The present paper deals with the accumulation of public debt based on different kinds of nonlinear models. The same problem is analysed here in three different models. In the first model difference between growth rate and interest rate depends lineary on the debt/GDP ratio and the budget deficit.
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The Dynamics of Corporate Debt Structure
SSRN Electronic Journal, 2019We find that US public firms spread out their debt more across different sources in recession quarters, making measures of debt concentration move pro-cyclically. There is substantial cross-sectional variation in these dynamics. Firms with less leverage and higher debt concentration further decrease leverage and increase debt concentration in ...
Halling, Michael +2 more
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Public debt sustainability and debt dynamics: The case of Tanzania
2020Rising public debt in sub-Saharan Africa remains a matter of concern. We provide an analysis of public debt and debt sustainability in Tanzania, focusing on external debt. Though current and previous analyses using the IMF-World Bank debt sustainability framework indicate low risk of public external debt distress, these analyses are sensitive to ...
Were, Maureen, Mollel, Lekinyi
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, 1999 In this chapter, we will address the last economic question resulting from the chosen model framework: how does public indebtedness evolve and how does fiscal policy and financial market interaction influence this evolution? We will take ‘public debt per output’ (i.e. the debt ratio) as the appropriate measure for public indebtedness. The debt ratio is
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Debt, Defaults and Dogma: Politics and the Dynamics of Sovereign Debt Markets
SSRN Electronic Journal, 2018Using data from 40 nations, we obtain new stylized facts regarding the impact of political leanings of the ruling government on sovereign debt yields and fiscal policy. Left-wing governments' yields are 166 basis points higher and 23% more volatile than yields of right-wing governments. Moreover, left-wing governments face more counter-cyclical yields.
Jonny Cotoc +2 more
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The dynamics of default and debt reorganization
Review of Financial Studies, 1999This article documents the fact that when debtors decide to default on their obligations too early, it is in the creditors’ collective interest, as residual claimants, to make concessions prior to forcing a costly liquidation. Symmetrically, when debtors prefer to default at an inefficiently late stage, it is in the creditors’ interest to propose a ...
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