Konstantin W. Milbradt
Associate Professor of Finance
Co-Director, Guthrie Center
Professor Milbradt's research interests are in financial economics, specifically in how financial frictions affect asset prices, the macroeconomy, corporate decisions, and mortgage markets. In his recent work, he theoretically and empirically investigates how heterogeneity of homeowner's prepayment decisions affects prices in the conforming mortgage market and monetary policy pass-through, as well as how different contract designs would change these prices. Professor Milbradt holds a PhD from Princeton University (2009) and a BA from Oxford University (2003). Before joining Kellogg School of Management (2013), he served as an Assistant Professor of Finance at the MIT Sloan School of Management.
- Financial Economics
- Liquidity
- Asset Pricing & Corporate Finance under Financial Frictions
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Ph.D., 2009, Economics, Princeton University, Princeton University
B.A., 2003, Economics and Management, Oxford University, Oxford University -
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 -
Faculty Research Fellow (Asset Pricing), National Bureau of Economic Research, 2013-present
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Best paper award Utah Winter Finance Conference "A model of safe asset determination"
Best paper award Utah Winter Finance Conference "Endogenous Liquidity and Defaultable Bonds"
Best Paper Prize, Utah Winter Finance Conference
Best Paper Prize, Utah Winter Finance Conference -
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
Corporate Finance III (FINC-586-3)
This course is a topics course in Corporate Finance and Financial Frictions, with some coverage of macro-finance models. The course is mainly about dynamic models, and will cover (1) dynamic optimal cash holdings, (2) dynamic principal-agent models, (3) dynamic models of corporate bankruptcies, (4) search frictions (directed and undirected), (5) mean-field games in which heterogeneity matters, including some basic consumption-savings model and a model of dynamic adverse selection in mortgage markets, (6) dynamic intermediation models, and (7) if time allows some more recent advances on the border between finance and macroeconomics. The focus is on developing the tools for dynamic stochastic models of frictions.
Entrepreneurial Finance and Venture Capital (FINC-445-0)
This course uses the case method, alongside selected lectures and guest speakers, to study entrepreneurial finance and venture capital decision focusing on the funding decisions of start-ups (fast growing entrepreneurial firms). The goal is to understand how entrepreneurs can raise funds and how venture capital partnerships choose, value, structure, fund, and manage their investments. The course covers all stages of the financing process, from startup to exit, structuring multi-staged financings, and valuing entrepreneurial ventures. In addition, the course provides insight into how venture capital partnerships work, why they take the forms they do, and where the crucial problems and opportunities for innovation exist. Consideration is given to the incentives faced by venture capital partnerships and the investors in those partnerships, and how to properly make financing decisions and negotiate contractual terms. The course emphasizes high growth start-ups searching for funding in the US and venture capital funding as opposed to more traditional entrepreneurial and family firms operating globally (see FINC945 for these topics) and to Leveraged Buyouts (see FINC-448 for LBOs). The course is aimed primarily at people who may be involved in an entrepreneurial venture at some point in their careers, those interested in pursuing venture capital careers, or those interested in asset management. The coursework will consist of case study write-ups as well as a take-home final exam.
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)
Corporate Finance (BUS_INST-304-0)
Effects of time and uncertainty on valuation and decision making. Discounting techniques, stock and bond valuation, capital budgeting, firm valuation, capital asset pricing model, financial options. May not receive credit for both this course and ECON 360-1. Not for students who have previously taken KELLG_FE 310-0. Prerequisites: ECON 201-0 and ECON 202-0; STAT 210-0 or equivalent; MATH 218-1 or MATH 220-1; and BUS_INST 301-0.
Venture Investing (FINC-980-5)
This course provides an overview of venture capital and the VC investment process. The course covers the basics of startup venture evaluation and how VCs use qualitative and quantitative information to prepare forecasts, value companies, and assess risk. It also introduces basic term sheets and investment structures. The course is aimed primarily at people who may be involved in an entrepreneurial venture at some point in their careers or are interested in venture capital careers. The course is only offered in the San Francisco immersion program
