Report
How do treasury dealers manage their positions?
Rosenberg, Joshua V.; Nguyen, Giang; Fleming, Michael J. (2007)
Using thirty-one years of data (1990–2020) on U.S. Treasury dealer positions, we find that Treasury issuance is the main driver of dealers’ weekly inventory changes. Such inventory fluctuations are only partially offset in adjacent weeks and not significantly hedged with futures. Dealers are compensated for inventory risk by means of subsequent price appreciation of their holdings. Amid increased balance sheet costs attributable to post-crisis regulatory changes, dealers significantly reduce their position taking and lay off inventory faster. Moreover, the increased participation of ...
Staff Reports , Paper 299

Inventory Mismatches Continue to Be Widespread
Jefferson, Nathan (2022-09-27)
The pandemic spurred firms to stockpile inputs in an attempt to avoid the risks of just-in-time delivery. Yet inventory mismatches remain widespread. Why?
On the Economy

Journal Article
International Trade Dependence and Inventory Dynamics
Leibovici, Fernando; Dunn, Jason (2023-08-16)
US manufacturers that source their intermediate inputs from abroad have been more likely to increase their inventories in the aftermath of unexpected events and heightened uncertainty.
Economic Synopses , Issue 17 , Pages 3 pages

Supply Chain Disruptions and Inventory Dynamics
Dunn, Jason; Leibovici, Fernando (2023-08-07)
Firms appear to have moved away from a just-in-time inventory model to one that prioritizes resilience, as reflected in high levels of inventory holdings of intermediate inputs.
On the Economy

Working Paper
Demand Shock, Liquidity Management, and Firm Growth during the Financial Crisis
Maksimovic, Vojislav; Tham, Mandy; Yook, Youngsuk (2015-10-30)
We examine the transmission of liquidity across the supply chain during the 2007-09 financial crisis, a period of financial market illiquidity, for a sample of unrated public firms with differential demand shocks. We measure differential demand by comparing firms that primarily supply to government customers with those that primarily supply to corporate customers. A difference-in-difference analysis shows little evidence that relatively high demand firms provide more or less liquidity to their own suppliers. The main determinant of the usage of short-term financing is a product market shock. ...
Finance and Economics Discussion Series , Paper 2015-96