Credit Market Loans vs. Capital Structure Loans

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  • #17651

    Dr Herbener,
    In the lecture on the Time Market you talk about different interest rates in the Credit Market and the Capital Structure. Does the interest rate in the credit market refer to the consumer loans and the interest rate in the capital structure to the producer loans?


    The typology is:

    Time Market
    1. Credit Markets
    **a. Consumer Loans
    **b. Producer Loans
    2. Capital Structure

    The consumer loan markets and the capital structure are independent components of the time market. The producer loan market is a dependent component, i.e., all the fund borrowed in the producer loan markets are spent into the capital structure.


    Okay, thank you!

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