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

Conference Presentations
Princeton, 2008 Seminar
Fed NY, NYU Stern, MIT Sloan, Stanford GSB, UCSD Rady, Washington University Olin, UT Austin McCombs, UPenn Wharton, Fed Board, Federal Atlanta, 2009 Seminars
WFA San Diego, SITE Stanford, 2009
EFA Frankfurt, Gerzensee CEPR, WFA Victoria, 2010
Brandeis, Duke Fuqua, Berkeley Haas, Boston University School of Management, Yale School of Management, 2010 Seminars
NBER Market-Microstructure Meeting, Finance Theory Group Meeting Philadelphia, Paris Corporate Finance Conference, Tepper-LAEF Macro-Finance Conference, 2011
NYU Stern (Lunch), Columbia GSB (Lunch), McGill University, 2011 Seminars
Duke-UNC Asset Pricing Conference, ASU Winter Finance Conference, Adam Smith Asset Pricing Workshop Oxford, Texas Finance Festival, NBER Summer Institute Asset Pricing, SED Cyprus, Gerzensee CEPR, WFA Las Vegas, Swissquote Lausanne, 2012
LSE Paul Woolley Center, UCLA, INSEAD, Mannheim, HU Berlin, Stockholm School of Economics, Imperial College London, Northwestern University Kellogg School of Management, Helsinki School of Economics, 2012 Seminars
Utah Winter Finance Conference, NYU Stern – NY Fed Intermediation Conference, 2013
Minnesota Carlson School of Management, London Business School, Federal Reserve Board, University of Bonn, Copenhagen Business School, 2013 Seminars

 
Print Research
Articles
Milbradt, Konstantin. 2012. Level 3 assets: Booking profits, concealing losses. Review of Financial Studies. 25(1): 55-95.
Milbradt, Konstantin. 2012. The Hazards of Debt: Rollover Freezes, Incentives, and Bailouts. Review of Financial Studies. 25(4): 1070-1110.
Working Papers
Milbradt, Konstantin and Zhiguo He. Endogenous Liquidity and Defaultable Bonds.
Oehmke, Martin and Konstantin Milbradt. Maturity Rationing.
Milbradt, Konstantin, Hui Chen and R. Cui. Liquidity and default of corporate bonds over the business cycle.
Milbradt, Konstantin. Multiple equilibria in models of debt rollover.

 
Print Teaching
Full-Time / Part-Time MBA
Finance I (FINC-430-0)

This course counts toward the following majors: Analytical Finance, Finance

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.

Pre-requisite: Business Analytics I (DECS-430). Business Analytics II (DECS-431) and Accounting for Decision Making (ACCT-430) are recommended and may be taken concurrently.

Doctoral
Corporate Finance (FINC-486-0)
This advanced seminar focuses primarily on the theory of corporate finance. Topics include the Modigliani-Miller invariance theorems; the role of taxes, incentives, asymmetric information and product market competition in the choice of capital structure; optimal security design; and financial intermediation. Students should be familiar with material from FINC-485.