Konstantin Milbradt
Konstantin W. Milbradt

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  investigates how coordination amongst investors makes some government bonds safe. 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 as an Assistant Professor of Finance at the MIT Sloan School of Management.

Print Vita
Ph.D., 2009, Economics, Princeton University, Princeton University
B.A., 2003, Economics and Management, Oxford University, 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
Best Paper Prize, Utah Winter Finance Conference
Best Paper Prize, Utah Winter Finance Conference
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
Associate Editor, Review of Finance, 2017
Referee, American Economic Review, Journal of Finance, Management Science, Econometrica, Review of Economics Studies, Journal of Financial Economics, Journal of Political Economy, Review of Financial Studies, 2016

Print Research
Research Interests

Financial Economics, Liquidity, Asset Pricing & Corporate Finance under Financial Frictions

Milbradt, Konstantin, Zhiguo He and Arvind Krishnamurthy. 2016. What makes US government bonds safe assets?. American Economic Review. 106(5): 519-523.
Milbradt, Konstantin, Arvind Krishnamurthy and Zhiguo He. Forthcoming. A model of safe asset determination. American Economic Review.
Milbradt, Konstantin and Zhiguo He. 2016. Dynamic debt maturity. Review of Financial Studies. 29(10): 2677-2736.
Milbradt, Konstantin and Martin Oehmke. 2015. Maturity Rationing and Collective Short-Termism. Journal of Financial Economics. 118(3): 553-570.
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 and Fabrice Tourre. 2018. A theory of the mortgage rate pass-through.
Milbradt, Konstantin, Hui Chen and R. Cui. Forthcoming. 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-430-5)

Corequisite/Prerequisite: Accounting for Decision Making (ACCT-430) and Business Analytics II (DECS 431-0)

Field Study (FINC-498-0)
Field Studies include those opportunities outside of the regular curriculum in which a student is working with an outside company or non-profit organization to address a real-world business challenge for course credit under the oversight of a faculty member.

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.