Pope Pius XII to the Guild of St. Luke

EDITOR\u27S NOTE: The address of Pope Pius XII, given November 12, 1944, to the Italian Guild of St. Luke, was perhaps the most comprehensive of all of his talks on medical morality. Moreover, it seems to have been the first of his many discourses to the medical profession; and it contained in germ many of the subsequent and very important addresses. We believe that all Catholic doctors should be familiar with its content; hence, we are presenting here a very complete digest of the Pope\u27s words. This has been made possible through the generous cooperation of Daniel T. Costello, S.J.; Mario Jaccarini, S.J.; and Richard J. McPartlin, S.J

Risk aversion and debt maturity structure

We study the relationship of risk aversion and debt maturity structure. In a model in which adverse selection in financial markets creates a role for the use of short-term debt, we allow the possibility of borrowers being risk-averse. This creates a trade-off between reduced expected financing costs and higher risk and allows for the study of the effect of risk aversion on optimal maturity structure. We prove that, as risk aversion increases, so does the percentage of debt that is long-term.risk aversion, debt maturity structure, adverse selection.