In an environment of zero or near-zero interest rates, creditors have an incentive to “extend and pretend” – that is, roll over their maturing debt, so that they can keep their problems hidden for longer. Because the debt can be refinanced at such low rates, rollover risk is very low, allowing debtors who would be considered insolvent under normal circumstances to carry on much longer than they otherwise could.
在零或近零利率环境中，债权人有动力“延期和假装”，即烟气到期债务以便在更长时间里隐瞒它们的问题。由于债务可以以极低利率再融资，延期风险很低，这让在正常环境中将被认定为资不抵债的债务人可以维持更长时间。毕竟，如果债务以零利率不断延期直到永远，就不会出现真正的问题——也不会有债务人被认为资不抵债。债务实际上将成为无限期。