• 1 Introduction
  • 2 The Model
  • 2.1 Firms’ Projects
  • 2.2 Financing Options
  • 2.3 State-Contingent Contracts
  • 3 Firms’ Choice among Standard Debt Instruments
  • 4 Publicly observable Credit Risk
  • 4.1 Financing Options
  • 4.2 Firms’ Choice between Long-term Direct Debt and CP with BackupLine of Credit
  • 5 Comparative Statics
  • 6 Discussion and Conclusion
  • 7 Appendix