Konstantin Milbradt
Konstantin Milbradt

FINANCE
Associate Professor of Finance

Print Overview

Professor Milbradt's research interests are in financial economics, specifically in how financial frictions affect asset prices and corporate decisions. In his recent work, he theoretically and quantitatively investigates how illiquidity risk and different debt maturity structures affect the pricing of bonds and specifically their default risk. Professor Milbradt holds a PhD from Princeton University and a BA from Oxford University (UK). Before joining Kellogg School of Management in 2013, he served for 4 years as an Assistant Professor of Finance at the MIT Sloan School of Management.



Print Vita
Education
Ph.D., 2009, Economics, Princeton University
B.A., 2003, Economics and Management, Oxford University

Academic Positions
Associate Professor of Finance, Finance, Kellogg School of Management, Northwestern University, 2013-present
Assistant Professor of Finance, Finance, MIT, Sloan School of Management, 2009-2013

Other Professional Experience
Faculty Research Fellow (Asset Pricing), National Bureau of Economic Research, 2013-present
Internship Research Division, International Monetary Fund, 2005-2005
Internship Monetary Policy Strategy Division, European Central Bank, 2003-2003

Honors and Awards
Graduate School Summer Research Scholarship, Princeton University, 2004-2007
Department of Economics Fellowship, Princeton University, 2003-2007
International Economics Section Fellowship, Princeton University, 2003-2007
Waugh Scholarship for Academic Excellence, Exeter College, 2001-2003

Editorial Positions
Referee, American Economic Review, Journal of Finance, Financial Intermediation, Management Science, Econometrica, Review of Economics Studies, Journal of Financial Economics, Journal of Political Eonomy

Print Research
Articles
Milbradt, Konstantin, Zhiguo He and Arvind Krishnamurthy. Forthcoming. What makes US government bonds safe assets?. American Economic Review.
Milbradt, Konstantin and Martin Oehmke. Forthcoming. Maturity Rationing and Collective Short-Termism. Journal of Financial Economics.
Milbradt, Konstantin and Zhiguo He. 2014. Endogenous Liquidity and Defaultable Bonds. Econometrica.
Milbradt, Konstantin. 2012. The Hazards of Debt: Rollover Freezes, Incentives, and Bailouts. Review of Financial Studies. 25(4): 1070-1110.
Milbradt, Konstantin. 2012. Level 3 assets: Booking profits, concealing losses. Review of Financial Studies. 25(1): 55-95.
Working Papers
Milbradt, Konstantin, David Berger, Ian Dew-Becker, Lawrence Schmidt and Y. Takahashi. 2016. Layoff risk, the welfare cost of business cycles, and monetary policy.
Milbradt, Konstantin, Arvind Krishnamurthy and Zhiguo He. 2015. A model of the reserve asset.
Milbradt, Konstantin and Zhiguo He. Forthcoming. Dynamic debt maturity.
Milbradt, Konstantin, Hui Chen and R. Cui. 2015. Liquidity and default of corporate bonds over the business cycle.

 
Print Teaching
Full-Time / Evening & Weekend MBA
Finance I (FINC-430-0)

Finance 1 answers managers’ and investors’ most fundamental finance question: how should a project or an asset be valued? Managers must determine the value of building a factory, entering a new market, or purchasing an entire firm when deciding in which projects to invest. Similarly, individuals must assess the value of financial securities to decide how to invest their wealth. Using a combination of lectures and business cases, Finance 1 teaches the discounted cash flow and multiples methods to value projects or assets. These valuation tools lay the foundation for all work in capital markets and corporate finance.

Prerequisite: Business Analytics I (DECS-430)

Recommended Prerequisite: Business Analytics II (DECS-431)

Corequisite: Accounting for Decision Making (ACCT-430)



Corporate Finance I (FINC-586-1)
This course introduces students to theories of corporate financing and investment decisions; optimal financial contracting and security design; financial intermediation; and financial crises. Throughout we study the effects of incentive problems and asymmetric information.