Incomplete Information, Debt Issuance, and the Term Structure of Credit Spreads

The authors thank Nina Boyarchenko, Olena Chyruk, Greg Duffee, Pierre Collin-Dufresne, Murray Frank, Rob Heinkel, Marco Grotteria, Jiri Knesl, David Lando, Yi Li, Semyon Malamud, Kristian Miltersen, Monika Piazzesi, Richard Rosen, Gustavo Suarez, Fabrice Tourre, and Josef Zechner as well as seminar participants at Copenhagen Business School, Humboldt University, Hong Kong University of Science and Technology, University of California Riverside, University of North Carolina, Vienna Graduate School of Finance, the 2018 National Bureau of Economic Research summer institute Asset Pricing Meeting, the 2019 AFA meeting, the 2018 Society of Financial Studies Cavalcade, and the 2018 CFE meeting for comments and suggestions. David Kelley, Scott Lee, Dongliang Lu, Andy Polacek, Zachry Wang, and Dan Weiss provided excellent research assistance. All remaining errors are the authors’ own. The views expressed herein are those of the authors and not necessarily those of the Federal Reserve Bank of Chicago or the Federal Reserve System.