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

Grants 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 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, Arvind Krishnamurthy and Zhiguo He. 2015. A model of the reserve asset.
Milbradt, Konstantin and Zhiguo He. 2015. 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 / Part-Time MBA
Finance I (FINC-430-0)

Finance 1 covers managers' and investors' most fundamental finance decision: how to value a project or an asset. 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 three principal methods for valuing projects or assets: discounted cash flow, multiples, and real options. 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) and Accounting for Decision Making (ACCT-430), which may be taken concurrently.



Doctoral
Corporate Finance I (FINC-486-1)
These courses cover major topics in the asset pricing literature with an emphasis on recent developments. The topics covered include: models of portfolio choice, the pricing of securities in capital markets, general equilibrium models, and the interrelationship between financial markets and the real economy.