The Maturity Rat Race

For helpful comments we are grateful to Viral Acharya, Ana Babus, Patrick Bolton, Philip Bond, Catherine Casamatta, Thomas Eisenbach, Itay Goldstein, Lars-Alexander Kuehn, David Skeie, Vish Viswanathan, Tanju Yorulmazer, Kathy Yuan, and seminar participants at Columbia University, the Federal Reserve Bank of New York, the Oxford-MAN Liquidity Conference, the NBER Summer Institute, the 2009 ESSFM in Gerzensee, the Fifth Cambridge-Princeton Conference, the Third Paul Woolley Conference at LSE, the WFA meetings in Victoria, BC, the Minneapolis Fed, the 2010 SITE conference at Stanford, the NYU/New York Fed Financial Intermediation Conference, and the University of Florida. We thank Ying Jiang for excellent research assistance. We gratefully acknowledge financial support from the BNP Paribas research centre at HEC. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.