• 1 Introduction
  • 2 The Asset Market Economy
  • 2.1 Dynamically Complete Markets
  • 2.2 HARA Utility and Linear Sharing Rules
  • 3 Portfolios with a Consol
  • 3.1 Two-Fund Monetary Separation
  • 3.2 The Consol is the Riskless Asset
  • 3.3 Illustrative Example: Consol vs. Short-lived Bonds
  • 4 Portfolios with Many Finite-Maturity Bonds
  • 5 Multiple Finite-Maturity Bonds Span the Consol
  • 5.1 Equilibrium Portfolios with IID Dividends
  • 5.2 Spanning the Consol
  • 5.3 Identical Persistence Across Stocks and States
  • 6 Nearly Optimal Portfolios with Bond Ladders
  • 6.1 A Limit Result for Bond Ladders
  • 6.2 Welfare Measure for Portfolios
  • 6.3 Portfolios with Bond Ladders
  • 7 Concluding Discussion
  • 7.1 On the Asset Allocation Puzzle
  • 7.2 Limitations and Implications
  • Appendix
  • A Equilibrium in Dynamically Complete Markets
  • B Technical Details
  • C Additional Results
  • References